Iron ore mining agreement with Adani Group terminated in Chhattisgarh

NMDC-CMDC Ltd said the response of Adani Enterprises to the show cause notice (issued to it earlier on July 11 for termination) was 'not satisfactory'
Image used for representational purposes (Photo | AFP)
Image used for representational purposes (Photo | AFP)
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RAIPUR: The NMDC-CMDC Ltd (as joint venture company NCL) has terminated the iron ore mining services agreement signed with Adani Enterprises Ltd, (AEL), saying it had not taken essential steps toward achieving the conditions and objectives specified in the contract.

The termination is related to the allocation of south Chhattisgarh’s Bailadila iron ore Deposit-13 at Kirandul in Dantewada to AEL.

The competent authority of the NMDC-CMDC Ltd examined various terms and conditions of the agreement and cited the response of AEL to the show cause notice (issued to it earlier on July 11 for termination), as “Not satisfactory and didn't cover the areas that were detailed in the show cause notice”, and further added that the reply didn't infuse any confidence as M/s Adani was silent on its responsibility to initiate steps.

Speaking on AEL’s response to the show cause notice, NCL said the shifting of responsibilities is a lame proposition not worthy of acceptance. Reacting to the reply of AEL, the chief executive officer of the NCL in the termination order stated: “To say that the failure lies with the NCL is not only inaccurate but also mischievous. There is no point in continuing a non-starter any further. The iron ore mining service agreement dated December 6, 2018 stands cancelled”.

The Adani Group avoided commenting on the development.

“We have diligently fulfilled all our obligations since NMDC-CMDC Ltd awarded the contract for developing and operating Deposit-13 Iron Ore Block by NCL in 2018 through a transparent and competitive bidding process. However, considering the provisions of the agreement and the current circumstances, we choose not to comment at this time,” the Adani Group spokesperson told The New Indian Express.

The allocation of Bailadila Deposit-13, having the mine capacity of 10 metric ton per annum, also witnessed a protest in June 2019 by tribal villagers who claimed the given deposit is the centre of their faith with deity Nandraj Dev in the region. Following this, the Chhattisgarh government then halted the project work.

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