A senior shipping ministry
official recently told a gathering of federal and Andhra officials about its
intentions to co-locate a port with BPCL's proposed refinery, as it made
economic sense to do so, people familiar with the matter said.
The ministry feels that the cost of building a
port will come down by integrating its development with the proposed refinery,
the people said.
Besides, the refinery can become
an anchor customer, ensuring a significant volume of business for the port from
the very beginning, they said.
Indian refineries import most of the crude oil
they process and need proximity to ports for easier and cheaper input sourcing.