NORWEGIAN pension fund KLP has excluded Adani Ports and Special Economic Zone Ltd from its investment with effect from June 2021.
KLP, Norway's largest pension fund, took the harsh decision following the Indian company’s links with the Myanmar military breach.
Adani Ports, India's largest port operator, has been under scrutiny from international investors over its project to build a container terminal in the Yangon city on the land leased from a Myanmar military-owned conglomerate.
On February 1, Myanmar witnessed a military coup, followed by a crackdown on mass protests in which hundreds were killed.
Mass killing in Myanmar drew 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 told Reuters in a statement.
The container terminal being developed by Adani Ports is on the land owned by the Myanmar military, which poses an "imminent danger", as the port could be used by the armed forces 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.
KLP had an investment worth nine million crowns (£758,325) in Adani Ports at the time of its decision, Reuters reported.
Meanwhile, Adani condemned the violence in Myanmar and the violations of the fundamental rights of the people there. The company also said that when the deal was concluded in 2019, its counterparties were entities of the democratically-elected government in Myanmar.
Also, the company said it could drop the project and write down the investment, if it is found to be in violation of sanctions imposed by the US.
An activist group lauded KLP's decision to divest from Adani Ports.
"We call on other pension funds to follow suit and divest from Adani Ports and other business partners of the Myanmar military," Yadanar Maung, a spokesperson for Justice for Myanmar, said.
