The Gujarat government’s powerful state public sector undertaking (PSU), Gujarat State Public Corporation (GSPC), has faced a major environmental hurdle, putting its Rs 2,030 crore project to go in for commercial production of the gas it claims to have found in the KG Basin, off Andhra coast, in jeopardy. Asking the GSPC to “defer” the project till certain conditions are fulfilled, sources in Gujarat’s energy and petrochemicals department said, the expert appraisal committee (EAC) of the Union ministry of environment and forests has refused to give blanket coastal regulatory zone (CRZ) clearance for laying down underground gas pipeline, optical fibre cable (OFC), an effluent disposal pipeline – all of which is proposed to pass through CRZ area of Yanam-Puducherry, along the Andhra Pradesh coast – as also the proposal to set up an onshore gas terminal off Mallavaram and a process-cum-living quarter platform at offshore in KG Basin, Andhra Pradesh.