Reliance Industries is all set to acquire 78 per cent equity in the Krishna Godavari Gas Network Limited which will develop city gas distribution network across the state. In the first phase, the company would supply gas through pipelines to different categories including the domestic sector in 43 municipalities. With the piped gas project turning into a political issue, the Chief Minister, Dr Y.S. Rajasekhar Reddy, was believed to have directed the officials to make gas available through the project before the 2009 general elections in the state. "More importantly, the gas for domestic use will cost at least Rs 100 less for the same quantity which the consumers are getting in cylinders," said Mr D.A. Somayajulu, adviser to state, economic affairs. The revised shareholding pattern and a fresh memorandum of understanding would be finalised within a week, he added. As part of the Chief Minister's changed strategy to go soft on Reliance, the government invited Reliance to invest in the KGGNL instead of promoting its own company for the same purpose. While the state government and the Gujarat State Petroleum Corporation Limited will hold 11 per cent equity each, the majority equity holder, Infrastructure Development and Finance Corporation for Private Equity (IDFC), which has 48 per cent will be shunted out of the project. Official sources told this correspondent that Reliance did not want IDFC because the company itself wanted to mobilise capital. "Initially, the IDFC was informed of the government's decision to rope in Reliance," sources said adding that it would be informed about the complete withdrawl. The state was of the view that there would not be any hassles because the shareholders agreement has not been signed so far by the state, GSPCL and IDFC.