Govt nod to Adani Krishnapatnam Port for petro import in 'public interest'

The notification to allow continued petroleum imports at Krishnapatnam Port had a positive impact on the shares of Adani Ports, which gained over 1 per cent intraday on the Bombay Stock Exchange

The Indian government on Monday announced an extension allowing the Adani Group’s Krishnapatnam Port in Andhra Pradesh to continue importing petroleum in what officials described as a move made in ‘public interest’.

 

The extension permits the Gautam Adani-led enterprise to handle petroleum imports via the sea route until March 1, 2026, reinforcing the port’s role as a key infrastructure hub in the region.

  

A notification issued by the Ministry of Ports, Shipping and Waterways stated: “...in consideration of the necessity to import petroleum in public interest, hereby extends the notification for Krishnapatnam Port (Adani Krishnpatnam Port Ltd) in Andhra Pradesh for importing petroleum into India by sea in accordance with operations permitted in Navigational Safety at Ports Committee certificate for the period 25.08.2024 to 01.03.2026.”

 

The notification had a positive impact on the shares of Adani Ports, which gained over 1 per cent intraday on the Bombay Stock Exchange.

 

New cargo handling system in place

 

According to a report in The Economic Times, Adani Krishnapatnam Port enhanced its existing capacity and productivity by launching an advanced cargo handling system in August this year.

 

The new system allowed streamlining the management of both containerised and bulk cargo, with key features such as automated tracking, real-time data analysis, and improved logistics coordination, enhancing speed, accuracy, safety, and reducing costs, the news report mentioned.

 

Krishnapatnam Port, located in Andhra Pradesh, is one of India’s largest private ports, with a current capacity of 64 million tonnes per annum. Adani Ports and Special Economic Zone Limited (APSEZ) acquired a 75 per cent stake in Krishnapatnam Port Company Limited (KPCL) in October 2020. In April 2021, APSEZ purchased the remaining 25 per cent stake from Vishwa Samudra Holdings for Rs 2,800 crore, thereby gaining full ownership of the port.

 

India’s dependency on crude oil import

 

India continues to depend on the import of crude oil to meet industry demand despite efforts by the government to boost domestic production.

 

According to data released by the Petroleum Planning and Analysis Cell, India’s crude oil import expenditure saw a 12 per cent rise during the first half of FY25, reaching $71.3 billion, compared to $63.7 billion in the same period of FY24.

 

The country’s reliance on imported crude oil climbed to 88.2 per cent during the first six months of FY25, up from 87.6 per cent in the same period of FY24, mainly due to growing demand and stagnant domestic production.

 

India’s growing import dependency comes amid escalating geopolitical tensions, particularly in the Middle East. While India continues to buy cheap Russian oil to meet its demand, the government is also looking at crude oil imports from countries such as Brazil.