Thiruvananthapuram, Dec 26 (IANS): Decks have been cleared for laying the underground Kochi-Mangalore-Bangalore LNG pipeline of GAIL India Ltd in Kerala, Chief Minister Oommen Chandy said Wednesday.

"The normal compensation GAIL gives is 10 percent of the fair value of the land. They have raised it to 30 percent, and the width of the land to be taken has been reduced from 20 to 10 metres," Chandy said here.

"The land will continue to remain with the people but they will not be able to do any construction. However, they can carry out farming," he told reporters.

The total land to be acquired in Kerala for the 505-km pipeline is around 18 acres. GAIL expects to complete the project in six months.

This is the second phase of the Rs.2,915-crore project which ran into trouble over the compensation amount to be paid to landowners in Kerala.

The first phase of the 48-km pipeline project in and around Kochi is over. Kerala expects to earn Rs.500 crore in tax revenue annually once the project is completed.