Hey Nash
there is nothing to worry about.Delhi asks for passport earlier in the application process as they still do a few back ground checks and such using the passports.
Some other offices asks passports only when they are ready to issue a visa right away.
you should here from them in the next week or so.
Good luck.
Actually that is NOT true. New Delhi requests the passport when they are close to making a decision. They do not request it "early" in the application process. They only keep passports for a lengthy time if you have travelled outside of the country. Those who have not usually get their passport with visa in 2 weeks.