The NMDC-CMDC Ltd, operating as a joint venture known as NCL, has terminated the iron ore mining services agreement with Adani Enterprises Ltd (AEL). This decision came as AEL failed to take the necessary steps to meet the conditions and objectives specified in the contract. The termination pertains to the allocation of the Bailadila iron ore Deposit-13 in south Chhattisgarh’s Kirandul region of Dantewada to AEL.
NMDC-CMDC Ltd’s competent authority assessed the agreement’s terms and AEL’s response to a prior show cause notice. They found AEL’s response unsatisfactory, claiming it did not address the concerns raised in the notice. The reply provided no confidence in AEL’s willingness to initiate the required steps.
In response to AEL’s explanation, NCL stated that shifting responsibilities is an inadequate proposition and not worthy of acceptance. NCL’s CEO emphasized that the failure did not rest with NCL, and there was no point in continuing with a non-starter. Consequently, the iron ore mining service agreement, dated December 6, 2018, was canceled.
The allocation of Bailadila Deposit-13, which has a mine capacity of 10 metric tons per annum, faced opposition from tribal villagers who considered the deposit to be sacred. This led to a project work halt by the Chhattisgarh government in June 2019.
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