NEW DELHI: The government on Monday permitted Krishnapatnam Port in Andhra Pradesh, operated by Adani Ports and Special Economic Zone Limited (APSEZ), to import petroleum products by sea.
According to a notification from the Ministry of Ports, Shipping, and Waterways, the port is authorized to import crude oil from August 25, 2024, to March 1, 2026. The ministry stated that this decision aims to meet the growing demand for petroleum products in the country, as the import of these products is considered essential for the public interest.
Krishnapatnam Port, an all-weather, deep-water port managed by Adani Krishnapatnam Port Limited, is one of the key ports on India's east coast. The port has obtained the necessary NSPC certification (NSPC/041/2021) to ensure navigational safety for such operations.
India is the world’s third-largest consumer of crude oil, with an import dependency exceeding 85%. According to the Petroleum Planning & Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas, India’s total net oil and gas imports in value terms for the April-October 2024 period amounted to $79.3 billion, up from $69.2 billion during the same period in 2023.
Between April and October 2024, the value of petroleum product imports increased by 8.5% year-on-year to $14.1 billion, while exports of petroleum products declined by nearly 7% to $25.4 billion.
Currently, under the Petroleum Rules, 2002, certain ports are designated for the import and export of petroleum products, including Mumbai, Kolkata, Cochin, Haldia, Kandla, Chennai, Mangalore, Marmugao, Okha, Port Blair, Visakhapatnam, and Tuticorin. These ports are officially recognized and subject to specific regulations. Additionally, some non-notified ports, such as JNPT, Vadinar, Ennore, Paradeep, Hazira, Kakinada, Dabhol, Pipavav, Dahej, Mundra, and Jogeshwar Jetty (District Baruch), have been granted permission by the Ministry of Petroleum and Natural Gas to handle petroleum product imports.
Meanwhile, Adani Ports and Special Economic Zone Limited (APSEZ) operates 13 domestic ports across eight maritime states: Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu, Odisha, and West Bengal.