Taking a lesson from this, I tried an alterntaive way. I used the MySQL command line interpreter to dump the file and voila!!! The dump finished smoothly in less than 15 seconds!!!! So, that was an Apache bug. Right???
Ok, by the way here is the step by step process to carry out the same.
1. Copy your sql file to a convenient location(say root of C:\) and name it something simple (say 1.sql)
2. Now launch command prompt and change to the directory where MySQL is installed. Mine is in F:\xampplite\mysql\bin
mysql -u root
and enter your root password if asked. You may use any other username instead of root, depending on your needs.
4. Create the database if you want to dump into a new DB
CREATE DATABASE my_db;
5. Instruct MySQL to use this new DB.
6. Now use the SOURCE statement to dump the file
Watch out the process munching a couple of lays chips! By the time you finish two chips, mysql will finish the file :)
I'm uploading the screenshot for a 22MB SQL file dump.
This one's upto the time I pressed enter after SOURCE statement
This one is after execution