Reliance Industries and GAIL India have announced that they will begin the second phase of the construction of the pipeline to transport gas from the Krishna-Godavari basin to the southern parts of the country. GAIL India and RIL signed a gas transmission agreement (GTA) in 2007 to share each other’s pipelines for the transmission of natural gas from the KG basin fields and also obtained authorization from the Petroleum and Natural Gas Ministry to construct the pipe line in 2007. The pipeline would be complete by 2012 with an estimated investment of Rs.2300 crore by RIL and Rs.9000 crore by GAIL India. According to a senior official of the Ministry, RIL group was authorized to lay 1140km of pipeline consisting of 470km of the Vijaywada -Nellore-Chennai section and 670km of the Chennai-Tuticorin section.