However, Solicitor General Rohinton Nariman submitted before a bench comprising justices H L Dattu and C K Prasad that the Union Cabinet was yet to consider and take a decision on the report prepared by the committee headed by eminent environmentalist R K Pachauri.
The bench gave the government eight weeks time to apprise it about the future development of the project.
Nariman said that the Pachauri committee considered the issue of alternative alignment but concluded that it was not "economically and ecologically feasible".
In its report, the committee dealt with the issue of risk management and arrived at a finding that an oil spill would cause risk to the ecosystem.
The case relating to Ram Sethu came under judicial scrutiny due to a batch of petitions filed in the apex court against the ambitious Sethusamudram project, whose execution allegedly could damage the mythological bridge.
Sethusamudram project is aimed at constructing a shorter navigational route around India's southern tip by breaching the mythological Ram Sethu, said to have been built by Lord Rama's army of monkeys and bears to the demon king Ravana's kingdom Lanka.
As per the Sethusamudram project, the shipping channel is proposed to be 30 metres wide, 12 metres deep and 167 kms long.
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