Desai said he would quit as a minister if the project is forcibly implemented.
He was speaking during a debate on a calling attention notice moved by Husnabano Khalife (Congress) and other members on the proposed refinery project.
"The government will not allow injustice to be meted out to the people of 25 villages in the Konkan region (for the project)," he said.
The minister said the survey for land acquisition for the project has been stopped as local people were against it.
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"Land acquisition will not be done without the consent of the local people. The chief minister shall study all these aspects and then take a decision on the project," he said.
He added that the chief minister has told the Centre to decide on scrapping of the refinery project.
"The Industries Department's view is that land acquisition is not possible for the project," he said.