Even as most of the preparatory work for laying a 940-km pipe line for the proposed refinery in Sagar district got through after the foundation was laid in 1995, the Madhya Pradesh government stumbled over a hazard posed by Gujarat. Claiming that 16 km of the crude oil pipe line from the Arabian Sea coast would run through marine national park, the Gujarat government has been dragging its feet on giving environmental clearance.

The ambitious Rs-7,500 crore project at Asagod near Bina has since then been waiting to get a green signal for laying seven km pipe line along the sea and another nine kms along the adjoining soil of the national park in Vadinarregion.

Official sources said that the project's original cost of Rs 5400 crore has by now swelled to Rs 7500crore after its foundation stone was laid in December 1995 by the then prime minister P V Narasimha Rao. The daily cost overrun almost touches Rs two crore, or more than Rs 600 crore per year. ``If this stalemate continues for another one and a half to two years, the project is likely to become unviable. Which means we would have to consider winding up the project,'' they lamented.

The Centre had convened a high-level meeting, presided over by Principal Advisor to the Prime Minister Brajesh Mishra, on September 18 to discuss this issue following an apprehension that Oman could withdraw from the project because of the inordinate delay.

The Centre had requested the Gujarat government to come out with a proposal before October 31 to solve the problem. ``However, there has so far been no indication from the Gujarat government,'' the sources said on Sunday.

During his Amman tour in September last year, Prime Minister Atal Behari Vajpayee had reportedly assured authorities in Oman that all necessary clearancefor setting up the project would be given within 45 days. Subsequently, Vajpayee had asked the Gujarat government to initiate steps to resolve the problem so that the project could be commissioned at the earliest.

Officials associated with the project are still hopeful of full cooperation from the Centre and state governments of Gujarat and Madhya Pradesh. Project authorities had written several letters to the Centre and the Gujarat government, requesting action to grant necessary clearance for laying the pipe line to bring crude oil to Agasod.

They pointed out that the work for laying the 940-km long pipe line and the project could not be taken up without obtaining all necessary clearances. Once all sanctions are obtained, it will take another four years for the completion of the project.

As per the proposal, crude oil from Oman would be brought by sea near Vadinar in Jamnagar district from where it will be carried to Agasod through the pipe line. Out of this the crude oil will pass through a seven kmlong to be laid in the sea.

The sources claimed that the Gujarat government was holding back the clearance ``on the pretext of wildlife conservation'' as the pipe line would pass through marine national park. The contention, however, seems to have not convinced the Madhya Pradesh government. ``A pipe line of another oil company has already been laid through the same area,'' they said.

The sources also said the Gujarat government is lackadaisical also because it probably wanted to bargain with Madhya Pradesh on matters pertaining to the controversy over the Sardar Sarovar Project.