Highly placed sources in the Gujarat government revealed that the Sultan of Oman had recently taken up the issue with the Indian ambassador in Muscat. On his part, the Indian envoy had informed the external ministry of the urgency to expedite clearances for the project and the same had been conveyed to the petroleum ministry. And given India's vital interests in Oman with which it has entered into long term contracts for both oil and gas, the matter reached the Prime Minister's office.

It is reliably learnt that the PM personally held a meeting on the issue with the Gujarat chief minister Keshubhai Patel about a month back and instructed him to accord pending clearances to the project. On his part, the Gujarat CM is believed to have assured the PM that the state would take all possible steps to give a kickstart to the languishing project.

It may be mentioned that the Gujarat government has been dragging its feet over granting clearances for the crude pipeline for the Bina refinery project as a bargaining plank against the MP government's stand on the Sardar Sarovar Project.

The Gujarat government has already turned down as many as six different sub-sea pipeline routes proposed by BORL in the Vadinar region during the last couple of years on the grounds that they pass through the Marine National Park. Instead, the state government had advised BORL against basing its crude oil terminal in Vadinar and relocating it in somewhere near Sikka where Reliance petroleum Limited has also laid its pipeline to minimise the damage to marine life.

However, about a fortnight back, in a seeming volte face, the Gujarat CM finally acqueised and gave a nod to laying the crude pipeline through the Marine National Park. In addition, the CM also categorically stated that his government was not using the crude pipeline issue as a political weapon against the MP government. It is believed that the CM's decision was taken in the face of the Centre's diktat that it be done to ensure cordial bilateral relations with Oman. India has been actively wooing foreign investment in the oil sector and it is felt that friendly relations with Oman would help tie up crude oil supplies from a dependable source.

Apart from that, the crude pipeline in Gujarat is crucial not only for the Bina refinery but for BPCL's proposed Rs 7,000 crore refinery in Shankergarh near Allahabad in UP as well as this pipeline has to be extended further northwards from Bina.

An estimated Rs 150 crore has already been spent on the Bina project, the foundation stone for which was laid way back in 1995. State government sources however apprehend that the decision may stir up a hornet's nest as environmentalists may file a public interest litigation against the clearance. The green brigade has been contending that the rich coral reefs, mangroves and marine life of the area would be damaged if BORL is allowed to lay a pipeline through the marine park.