As per the pact, GAIL would transport the LPG lifted by IOC, which has the marketing rights, from the two private sector plants at a cost of Rs 1.30 per tonne/km, GAIL sources said.

GAIL is currently laying the largest 1,250 km LPG pipeline in the world at an investment of Rs 1,230 crore that would have a capacity to transport 2.5 million tonnes per annum (tpa) and the project is likely to be commissioned by April 2001, the sources said.

The Asian Development Bank (ADB) has sanctioned a loan of $150 million for the project. In the first phase, the project would have a capacity of 1.7 million tpa which would be expanded to 2.5 million tpa, the sources said.Reliance has a capacity to produce two million tonnes of LPG per annum.Work on the pipeline has been progressingat a brisk pace and GAIL has already bought 20,000 tonnes of pipes for the project out of the total requirement of 70,000 tonnes through tendering process, the sources said.