Exhibit 4.2

Employee Share Ownership Plan (ESOP) 2013



|a. | Performance Period: For vesting condition, the performance period considered will be FY 2013-14.
|-- | ------------------------------------------------------------------------------------------------



|b. | Vesting of options: The options awarded under ESOP 2013 shall vest based on the achievement of business performance in the performance period as defined above and also continued employment with the Group.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The vesting schedule shall be staggered over a period of three years from the date of grant with 70% vesting based on the
achievement of business performance and the remaining 30% based on continued employment with the Group till the end of 3rd year.

Therefore, the options shall vest at 40% at the end of 1st year, 30% at the end of 2nd year and the remaining 30% which is tenure-based at the end of 3rd year. For an employee to be eligible for performance-based vesting, he/she
should continue to be in employment till the date of vesting each year.

However, for Executive Directors, 100% vesting will be based on
achievement of performance condition with a staggered vesting schedule of 40:30:30 at the end of each year.



|c. | Performance conditions:
|-- | -----------------------



| |  |  | For Businesses - The vesting of options will be dependent on the achievement of business performance measured against
| | - |  | ---------------------------------------------------------------------------------------------------------------------



| |  |  | Operation Deliverables consisting of either Volume / COP / Free Cash Flow / EBITDA / Gross Working Capital / Sustainability
| | - |  | ---------------------------------------------------------------------------------------------------------------------------



| |  |  | Enablers consisting either of Asset Optimization / Mine Planning & Development / PR.
| | - |  | ------------------------------------------------------------------------------------



| |  |  | Completion of stipulated tenure with the Group.
| | - |  | -----------------------------------------------

The performance parameter scorecard for other
businesses is provided in Annexure A.



| |  |  | For EDs and Corporate Team based in Mumbai, Delhi and London  The performance conditions considered for EDs and Corp Team is weighted average score of businesses, financial aspects and Sustainability as
follows.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



For Corp Team:  SI No

Parameter

Weightage1

Weighted Average Score of Businesses*


50
%2

Market Capitalization of VR Plc**


50
%Total


100
%


For Executive Directors:  SI No

Parameter

Weightage1

Weighted Average Score of Businesses*


40
%2

Market Capitalization of VR Plc**


50
%3

Sustainability


10
%Total


100
%






|* | Weightages for Business Scores of entities will be as follows:
|- | --------------------------------------------------------------



|          |  |                                                  |  |                                                  |  |     |  |                        |  |          |  |      |  |       |  |     |  |    |  |     
|--------- |  | ------------------------------------------------ |  | ------------------------------------------------ |  | --- |  | ---------------------- |  | -------- |  | ---- |  | ----- |  | --- |  | -- |  | ----
|Company   |  | HZL                                              |  | SGL                                              |  | KCM |  | Av of Balco, VAL & SEL |  | Av of ZI |  | S Cu |  | Malco |  | CMT |  | FG |  | VGCB
|Score     |  | Simple average of above entities Business Score |  | Simple average of above entities Business Score
|Weightage |  | 80%                                              |  | 20%                                             



|** | The Comparator Group comprises of 14 companies as in Alcoa, Anglo American, Antofagasta, BHP Billiton, ENRC, First Quantum, FMG  Fortescue, Glencore, Khazamkhys, Rio Tinto, Teck, Tullow, Vale and Xstrata. The
score against market capitalization parameter for (ii) above shall be determines using the table below relying upon the relative ranking in the comparator Group. The relative ranking will be calculated on the basis of last 30 days average share
price at the beginning and at the end of the performance period (1st April to 31st March).
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                 |  |      
|---------------- |  | -----
|Relative Ranking |  | Score
|1 - 3            |  | 100  
|4                |  | 90   
|5                |  | 85   
|6                |  | 80   
|7                |  | 75   
|8                |  | 70   
|9                |  | 60   
|10               |  | 50   
|11               |  | 40   
|12               |  | 30   
|13 - 15          |  | Nil  



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---

|d. | Business Performance Score: The weighted average score of the various parameters detailed out above will be known as the Business Performance Score.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------



|e. | Vesting proportion: The vesting proportion will be dependent on the achievement of pre-determined performance conditions. Businesses have been classified as Category A and B on the basis of complexity and nature
of operations affecting the achievement of performance conditions.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

For example, the vesting matrix for HZL will be as
follows:



|                           |  |                                         
|-------------------------- |  | ----------------------------------------
|Business Performance Score |  | Vesting %                               
|90% - 100%                 |  | 50% plus 5% for every 1% score above 90%
|85% - 90%                  |  | 30% plus 4% for every 1% score above 85%
|At 85%                     |  | 30%                                     
|Below 85%                  |  | Nil                                     

The vesting matrix for other businesses is provided in Annexure B.



|          |  |                                                            
|--------- |  | -----------------------------------------------------------
|Enclosed: |  | Annexure A  Performance Parameter Scorecard               
|          |  | Annexure B  Vesting Matrix for Category A and B businesses

Annexure A: Performance Parameter Scorecard

The weightages of the various OD and Enabler parameters in each business will be as follows:



|                                             |  |     |    |    |     |  |    |     |  |  |          |    |  |       |    |   |       |  |    |       |  |  |     |   |  |       |    |   |    |  |    |      |  |  |              |   |  |     |    |   |      |  |    |      |  |  |    |   |  |  |    |   |  |  |    |   |  |  |    |  
|-------------------------------------------- |  | --- | -- | -- | --- |  | -- | --- |  |  | -------- | -- |  | ----- | -- | - | ----- |  | -- | ----- |  |  | --- | - |  | ----- | -- | - | -- |  | -- | ---- |  |  | ------------ | - |  | --- | -- | - | ---- |  | -- | ---- |  |  | -- | - |  |  | -- | - |  |  | -- | - |  |  | -- | -
|Parameters                                   |  | HZL |    |    | KCM |  |    | SGL |  |  | SGL(VAB) |    |  | Balco |    |   | VAL-J |  |    | VAL-L |  |  | SEL |   |  | BMMSZ |    |   | LM |  |    | S Cu |  |  | S CuCPPMalco |   |  | CMT |    |   | FG10 |  |    | VGCB | 
|Operational Deliverables                     |  |     |    |    |     |  |    |     |  |  |          |    |  |       |    |   |       |  |    |       |  |  |     |   |  |       |    |   |    |  |    |      |  |  |              |   |  |     |    |   |      |  |    |      |  |  |    |   |  |  |    |   |  |  |    |   |  |  |    |  
|Volume                                       |  |     | 45 | %1 |     |  | 40 | %3  |  |  | 30       | %4 |  |       | 30 | % |       |  | 30 | %5    |  |  | 30  | % |  |       | 30 | % |    |  | 20 | %    |  |  | 30           | % |  |     | 40 | % |      |  | 20 | %7   |  |  | 20 | % |  |  | 50 | % |  |  | 35 | % |  |  | 20 | %
|COP                                          |  |     | 25 | %2 |     |  | 20 | %   |  |  | 20       | %  |  |       |   |   |       |  | 20 | %6    |  |  | 20  | % |  |       | 30 | % |    |  |   |      |  |  | 25           | % |  |     | 25 | % |      |  | 20 | %8   |  |  |   |   |  |  | 40 | % |  |  | 25 | % |  |  | 10 | %
|Free Cash Flow(excl buyers/suppliers credit) |  |     |   |    |     |  |   |     |  |  | 20       | %  |  |       | 10 | % |       |  | 20 | %     |  |  | 20  | % |  |       |   |   |    |  | 30 | %    |  |  | 20           | % |  |     | 20 | % |      |  |   |      |  |  |   |   |  |  |   |   |  |  | 10 | % |  |  | 50 | %
|EBITDA                                       |  |     |   |    |     |  |   |     |  |  |         |    |  |       | 40 | % |       |  |   |       |  |  |    |   |  |       |   |   |    |  | 20 | %    |  |  |             |   |  |     |   |   |      |  | 20 | %    |  |  | 30 | % |  |  |   |   |  |  |   |   |  |  |   |  
|Gross Working Capital(12 month average)      |  |     |   |    |     |  |   |     |  |  |         |    |  |       |   |   |       |  |   |       |  |  |    |   |  |       |   |   |    |  |   |      |  |  |             |   |  |     |   |   |      |  | 10 | %    |  |  | 20 | % |  |  |   |   |  |  | 20 | % |  |  |   |  
|Sustainability                               |  |     | 10 | %  |     |  | 10 | %   |  |  | 10       | %  |  |       | 10 | % |       |  | 10 | %     |  |  | 10  | % |  |       | 10 | % |    |  | 10 | %    |  |  | 15           | % |  |     | 15 | % |      |  | 10 | %    |  |  | 10 | % |  |  | 10 | % |  |  | 10 | % |  |  | 10 | %
|Enablers                                     |  |     |    |    |     |  |    |     |  |  |          |    |  |       |    |   |       |  |    |       |  |  |     |   |  |       |    |   |    |  |    |      |  |  |              |   |  |     |    |   |      |  |    |      |  |  |    |   |  |  |    |   |  |  |    |   |  |  |    |  
|Asset Optimization                           |  |     | 10 | %  |     |  | 20 | %   |  |  |         |    |  |       |   |   |       |  | 10 | %     |  |  | 10  | % |  |       | 10 | % |    |  | 10 | %    |  |  |             |   |  |     |   |   |      |  | 10 | %    |  |  | 10 | % |  |  |   |   |  |  |   |   |  |  |   |  
|Mine Planning Development                    |  |     | 10 | %  |     |  | 10 | %   |  |  |         |    |  |       |   |   |       |  |   |       |  |  |    |   |  |       |   |   |    |  |   |      |  |  |             |   |  |     |   |   |      |  |   |      |  |  |   |   |  |  |   |   |  |  |   |   |  |  |   |  
|ER / PR9                                     |  |     |   |    |     |  |   |     |  |  | 20       | %  |  |       | 10 | % |       |  | 10 | %     |  |  | 10  | % |  |       | 20 | % |    |  | 10 | %    |  |  |             |   |  |     |   |   |      |  | 10 | %    |  |  | 10 | % |  |  |   |   |  |  |   |   |  |  | 10 | %
|Project Milestone                            |  |     |   |    |     |  |   |     |  |  |         |    |  |       |   |   |       |  |   |       |  |  |    |   |  |       |   |   |    |  |   |      |  |  | 10           | % |  |     |   |   |      |  |   |      |  |  |   |   |  |  |   |   |  |  |   |   |  |  |   |  

Note:

For SGL, Aluminium and SC
common, the business score will be weighted average score of the respective businesses as follows:



| |  |  | SGL common - 70% of SGL, 20% of SGL (VAB) and 10% of WCL
| | - |  | --------------------------------------------------------



|1 | Volume weightage of 45% comprises 30% for MIC volume, 10% for Refined metal production and 5% for integrated saleable silver.
|- | -----------------------------------------------------------------------------------------------------------------------------

|2 | COP weightage of 25% comprises 15% for Zn COP and 10% for Pb COP
|- | ----------------------------------------------------------------

|3 | Volume refers to integrated production
|- | --------------------------------------

|4 | Volume refers to Iron Ore sales
|- | -------------------------------

|5 | Volume weightage of 30% comprises 15% for Al volume and 15% for power sales
|- | ---------------------------------------------------------------------------

|6 | COP weightage of 20% comprises 10% for Al COP and 10% for commercial power COP
|- | ------------------------------------------------------------------------------

|7 | Volume refers to production of fresh anode
|- | ------------------------------------------

|8 | COP refers to Gross COP
|- | -----------------------

|9 | Refers to Top 3 actionable agenda
|- | ---------------------------------

|10 | For FG, all applicable parameters comprises 50% for CCR and 50% for PMR
|-- | -----------------------------------------------------------------------



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---

Project Milestones for Projects:



For WCL, Liberia  Project timeline


 30
%  Project Cost


 30
%  Exploration


 15
%  Sustainability


 15
%  MAS grading


 10
%


For TSPL, Talwandi and VMRF  Project timeline


40
%  Project Cost


35
%  Sustainability


15
%  MAS grading


10
%




ZI Common  Operational Deliverables

WeightageVolume


30
%COP


25
%Free Cash Flow(excl buyers/suppliers credit)


10
%Sustainability*


15
%Enablers

WeightageProject Milestone


20
%Total


100
%


ZI projects:  Operational Deliverables

WeightageSustainability*


15
%Gamsberg


35
%Swartberg


15
%Refinery Conversion


15
%Gergarub


15
%Power Projects


5
%Total


100
%




Note: *Sustainability weightage of 15% comprises 10% for safety and environmental performance and 5% for
sustainability initiatives.  **
Project Milestone scores would be based on progress on Gamsberg, Swartberg, Refinery Conversion, Gergarub and Magnetite Project


Note: *Sustainability weightage of 15% comprises 10% for safety and environmental performance and 5% for
sustainability initiatives






Annexure B: Vesting Matrix for Category
A and B businesses.



|                   |  |                            |  |            |  |                                         
|------------------ |  | -------------------------- |  | ---------- |  | ----------------------------------------
|Category A         |  | Business Performance Score |  | Vesting % 
|  HZL             |  |   ZI                      |  | 90% - 100% |  | 50% plus 5% for every 1% score above 90%
|  SC & SC (CPP)   |  |   CMT                     |  | 85% - 90%  |  | 30% plus 4% for every 1% score above 85%
|  Malco           |  |   FG                      |  | At 85%     |  | 30%                                     
|                   |  |                            |  | Below 85%  |  | Nil                                     
|                   |  |                           
|Category B         |  | Business Performance Score |  | Vesting % 
|  VAL-J           |  |   SEL                     |  | 90% - 100% |  | 60% plus 4% for every 1% score above 90%
|  VAL-L           |  |   KCM                     |  | 80% - 90%  |  | 30% plus 3% for every 1% score above 80%
|  BALCO           |  |   VGCB                    |  | At 80%     |  | 30%                                     
|  SGL & SGL (VAB) |  |                            |  | Below 80%  |  | Nil                                     

Note: In case, the business performance score exceeds 100%, Remco approval will be sought for higher vesting proportion.

The above vesting matrix will ensure delivery of high performance levels due to higher exponential vesting percentage as the score improves.



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