Despite NMDC terminating the mining deal, Adani Enterprises is trading higher

28 Sep 2023 , 01:35 PM

Early trade on September 28 saw shares of Adani Enterprises Limited trading 0.6% higher at Rs 2,496, continuing a two-day winning streak.

The cancellation of the iron ore mining contract by NMDC-CMDC, a joint venture between the National Mineral Development Corporation and the Chhattisgarh Mineral Development Corporation, appears to have been overlooked by buyers rushing for the stock.

According to reports, NMDC-CMDC said that the contract was cancelled due to issues such as claims of monopoly in operations, the transfer of duties, and the provision of deceptive information.

The agreement, which was concluded in December 2018, relates to Adani Enterprises’ acquisition of the Bailadila iron ore Deposit-13 in Kirandul in the Chhattisgarh region of Dantewada.

There was a considerable uproar when the Adani Group flagship purportedly caused an unlawful tree to be cut down when it started operations at Bailadila. Native American tribes started protesting on June 19 and claimed it was an attack on their religion and god, according to the Free Press Journal.

The report also stated that the JV gave the Adani company a show-cause notice before to the termination. According to the authorities, Adani Enterprises’ answer was ‘unsatisfactory’ and lacked the ability to inspire trust because the business remained ‘silent on its responsibilities’.

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