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Shares of Adani Enterprises Limited traded 0.6 percent higher at Rs 2,496 in early trade on September 28, staying in the green for the second day in a row.
Bulls rushing for the stock seem to have brushed aside the cancelling of the iron ore mining contract by NMDC-CMDC, a joint venture of the National Mineral Development Corporation and the Chhattisgarh Mineral Development Corporation.
As per reports, NMDC-CMDC stated that the contract was terminated because of factors such as allegations of monopoly in operations, transfer of responsibilities, and providing mischievous information.
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The contract, signed in December 2018, pertains to the allocation of the Bailadila iron ore Deposit-13 at Kirandul in Dantewada district of Chhattisgarh to Adani Enterprises.
When the Adani Group flagship began operations at Bailadila, it allegedly led to an illegal tree felling, fuelling public outcry. Indigenous tribes launched protests on June 19, contending that it amounted to an assault on their faith and their deity, Free Press Journal reported.
The report also added that the JV served a show-cause notice to the Adani firm on the termination. The authority stated that it found the Adani Enterprises’ response “unsatisfactory” and lacking the ability to instill confidence, as the company remained “silent on its responsibilities”.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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