Hello Raghu,
The visa switching rules changed on 1st October of 2004. Only 5 visa categories can now switch in-country. They are:
-work permit holder
-student who has graduated from their UK programme
-working holiday maker
-postgrad doctor or dentist or trainee GPs
-participant in Science & Engineering Graduate Scheme.
Here's the url for the leaflet which details this policy.
http://www.workingintheuk.gov.uk/workin ... ing__.html
The way things stand right now, an in-country HSMP approval is essentially useless if you are not able to get an FLR(IED) -- which means that you must be in one of the cateogories above to switch. The HO will not allow you to use an in-country HSMP approval to go to your home country consulate and get entry clearance.
My advice is that unless you can change over to one of the other visa categories that will let you switch to an HSMP, to pull your application and reapply from your home country as an out-of-country applicant.
Try calling HSMP or emailing the FLR(IED) in-country team and see if they agree with my interpretation of the rules.
Sorry if that's not what you were hoping to hear. Better to know now, than wait 8 months and find out you wasted all that time in the queue.
Good luck to you.
rella