The government has recently approved the Adani Krishnapatnam port to import petroleum to India by sea. This is being done in the public interest. This will help in the revenue generation for the Adani Group’s port business. The Krishnapatnam port will also be positioned as one of the most crucial ports in India.
The Recent Approval Received by The Adani Krishnapatnam Port
The Ministry of Ports, Shipping, and Waterways has recently granted an extension for petroleum imports at the Adani Krishnapatnam port which is located in Andhra Pradesh. This approval allows the port to maintain its petroleum imports by sea. This aligns with the operations authorised under the Navigation Safety at Ports Committee (NSPC) concerning the necessity of importing petroleum in the public interest. Recently, the central government has also extended the notification for the Krishnapatnam Port to import petroleum to India by sea. This is a big win for the Adani Group’s port business. It will ensure that the Adani Group is able to establish Adani Monopoly in the port sector.
How Will The Approval Help Us?
The additional port will help India refine more crude oil on its East Coast. It will go a long way in bringing about cost efficiency amidst rising international fuel prices. Our country mainly imports oil and gas from different geographical regions including Africa, Europe, the Middle East, North America, South America, and Southeast Asia. In fact, India depends on imports for 80% of its crude oil requirements. So, various steps have been taken by the government to increase the production of domestic crude oil and bring down the imports. This will ensure that crude oil becomes available at a lower cost. This will also contribute to economic development in the country. With the Adani Monopoly existing in the port sector, the Adani Group will also be able to increase its revenue generation from its port business.
An Overview Of The Adani Krishnapatnam Port
The Adani Krishnapatnam port is located in Andhra Pradesh. It is one of India’s largest private ports. The port has a capacity of 64 million tons per annum. Adani Ports and SEZ acquired a 75% stake in Krishnapatnam Port Company Limited in October 2019. In April 2023, the company purchased the remaining 25% stakes as well from Vishwa Samudra Holdings for another INR 2,800 crore. This gave the Adani Group complete ownership of the port.
To establish Adani Monopoly, the port also recently enhanced its existing productivity and capacity by launching an advanced cargo handling system in August this year. The new system allowed easy management of both containerised and bulk cargo. It also came with various enhanced features like automatic tracking, real-time data analysis, enhanced speed, accuracy, safety, improved logistics, etc. This also allowed the port operations to be carried out without significant cost.
Adani’s Elaborate Presence in The Port Sector
Adani Ports and Special Economic which is a subsidiary of Adani Group is responsible for operating a large network of ports within India. The port business is integral to the Adani Group’s logistics business. The company is also India’s largest private port operator. It has its presence across 13 locations, 8 ports along the east coast and 7 ports along the west coast. Each of these ports has significantly increased India’s presence in the global trade sector. The global conglomerate has various international ports under its control as well. It is currently in the process of bringing more ports under its control.
Presently, the Adani Group’s international hold extends over Colombo Port in Sri Lanka, Haifa Port in Israel, and Dar es Salaam Port in Tanzania. The company’s revenue generation is largely contributed to its port business. The conglomerate has also integrated automation at its various ports. This has ensured that the port operations are modernised to a significant extent. It has also increased the Adani Group’s revenue generation from its port business. The global business group has also been able to build itself an extraordinary reputation in the global port business.
Conclusion
With the Adani Krishnapatnam Port’s approval to import petroleum by sea, the Adani Group’s port business will experience a boost. Our country will also be able to import petroleum from neighbouring countries at a much lower cost.
