Adani Ports has been under scrutiny from international investors over its project to build a container terminal in the city of Yangon on land leased from a Myanmar military-owned conglomerate
Last Updated at June 22, 2021 16:54 IST
Norwegian pension fund KLP is divesting from Adani Ports and Special Economic Zone Limited on the grounds the company’s links with the Myanmar military breach the fund’s responsible investment policy, KLP told Reuters on Tuesday.
Adani Ports, India’s largest port operator, has been under scrutiny from international investors over its project to build a container terminal in the city of Yangon on land leased from a Myanmar military-owned conglomerate.
A military coup in Myanmar on Feb. 1 and an ensuing crackdown on mass protests in which hundreds have been killed has drawn international condemnation and sanctions on military figures and military-controlled entities.
“Adani’s operations in Myanmar and its business partnership with that country’s armed forces constitutes an unacceptable risk of contributing to the violation of KLP’s guidelines for responsible investment,” KLP said in a statement to Reuters.
A spokesperson for the Myanmar military did not answer calls from Reuters seeking comment.
KLP, Norway’s largest pension fund, had an investment worth $1.05 million in Adani Ports at the time of its decision, it told Reuters.
It was divesting because the container terminal is being built on land owned by the Myanmar military and that there is an “imminent danger” the armed forces could use the port to import weapons and equipment, or as a naval base.
“In this way, the port could be used by the army to continue its violations of human rights,” KLP said.
Adani Ports was not immediately available for comment.
Adani Ports said in May it could abandon the Myanmar container terminal project and write down the investment if it was found to be in violation of sanctions imposed by the United States.
KLP said it had been in a dialogue with Adani Ports since March this year and held a meeting with the company’s management in April.
Adani told KLP “it takes human rights seriously, and that it has a human rights policy”, KLP said in its statement.
At the same time, “Adani said it had made no due diligence assessments relating to human rights before the agreement it concluded with the Myanmar military”, KLP said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.