On Tuesday, the Tatas gave in to requests from the Karnataka government not to withdraw from the project. A Karnataka government's high-level delegation was in Mumbai and discussed relevant issues with the Tata group chairman Ratan Tata.

The two have agreed on a joint study to look into the viability of the project. The study is expected to be complete within the next two months.

A jointly issued press release said that the Tatas brought to the notice of the Karnataka government the delays in laying down the project's basic parameters.

"At the request of the government of Karnataka, Tatas have now agreed to participate in a joint study...to examine ways to restore the viability of the project," the release says.

The Tatas and the Karnataka governmentacknowledged that there are some vital issues affecting the project's viability which need to be addressed during the joint study.

The proposed airport project and all associated matters were discussed with the officials who have come with a revised offer and a draft memorandum of understanding as the present memorandum expires on Wednesday.

The Tatas along with their consortium partners Raytheon of USA and Changi Airport Authority Singapore had walked out of the project, at Devenahalli near Bangalore, owing to inordinate delays in obtaining clearances.

The project is the first among two much-publicised projects that the Tatas have withdrawn in recent months. It also announced its decision to pull out from the airline project, citing similar reasons, this time the delay coming from the Foreign Investment Promotion Board.