Document:

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                                                                   EXHIBIT 10.19

                                OPTION AGREEMENT

THIS OPTION AGREEMENT ("this Agreement" or "these presents") entered into this
18th day of February, 2005 among:

(1)  STERLITE INDUSTRIES (India) LIMITED, a public limited company incorporated
     under the Companies Act, 1956 (1 of 1956) and having its Registered Office
     at B/10/4 Waluj, MIDC Ind. Area, Aurangabad (hereinafter referred to as
     "Option Seller" or Sterlite", which expression shall, unless repugnant to
     or inconsistent with the context, mean and include its successors and
     permitted assigns); and

(2)  INDIA FOILS LIMITED, a public limited company incorporated under the
     Companies Act, 1956 (1 of 1956) and having its Registered Office at 1,
     Sagore Dutta Ghat Road, Kamarhati, Kolkata- 700 058 (hereinafter referred
     to as "the Obligor" or India Foils ", which expression shall, unless
     repugnant to or inconsistent with the context, mean and include its
     successors and permitted assigns); and

(3)  ICICI Bank Limited, a company incorporated under the Companies Act, 1956
     and licensed as a Bank under the Banking Regulation Act, 1949 and having
     its registered office at "Landmark", Race Course Circle, Vadodara 390
     007(hereinafter referred to as "Option Buyer" or "ICICI", which expression

(4)  shall, unless the context otherwise requires, be deemed to include its
     successors and permitted assigns).

(The Option Seller, the Option Buyer and the Obligor are hereinafter
collectively referred to as the "Parties" and individually as a "Party")

WHEREAS:

(a)  By a Loan Agreement dated the 8th day of February, 2005 read with the Note
     of Amendment dated February 08, 2005 signed between ICICI and the Obligor,
     ICICI has lent and advanced or agreed to lend and advance a Rupee Term Loan
     of Rs.1020.00 million ("the Facility) to the Obligor. The aforesaid Loan
     Agreement read with the said Note of Amendment is hereinafter referred to
     "the Loan Agreement".

(b)  One of the conditions in the Loan agreement is that on payment of a one
     time option fee of Rs. 2.0 million of the facility to the Option Seller,
     the Option Seller shall grant an option to the Option Buyer to require the
     Option Seller to purchase from the Option Buyer the Receivables under the

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     Loan Agreement on the terms and conditions more particularly described
     herein.

(c)  The Loan Agreement is inter alia secured by a Corporate Guarantee dated
     8th February 2005 issued by Sterlite in favour of ICICI.

NOW THEREFORE, the Parties hereto hereby agree as follows:

1.   DEFINITIONS.

1.1  Capitalised terms used in this Agreement shall have the meanings set forth
     below:

     "Effective Date"" means the date of execution of the Option Agreement.

     "Debt Equity Ratio"" means total of secured loans, unsecured loans and
     working capital bank finance divided by the total equity share capital and
     reserves.

     "Tangible networth" means Paid up share Capital + free Reserves -
     Revaluation Reserves - Intangible assets.

     "Option Fees" means the fees aggregating to Rs. 2.0 million payable by the
     Option Buyer to the Option Seller on the Effective Date.

     "Option Price"" means an amount equivalent to the amount of Receivables on
     the Exercise Date.

     "Option Exercise Date"" means the date on which the Option is exercised by
     the Option Buyer

     "Put Notice" means the notice given /to be given by ICICI in terms of
     Sections 2.1 hereof.

     "Put Option" shall have the meaning assigned to it in Sections 2.1 hereof.

     "Put Option Events" means occurrence of any of the following events:

          (i)  Any delay or default in payment of any amounts in relation to the
               Loan agreement by the Obligor;

          (ii) Occurrence of any Event of Default under the Loan Agreement;

          (iii) Payment default by Option Seller to any of its creditors
               resulting in any legal proceedings and not resolved in a period
               of thirty days.

          (iv) If shareholding of the Vedanta Resources Public Limited Company
               reduces below 51% of the paid up capital of the Option seller

          (v)  Obligor/any other person seeking to suspend/stay the operation of
               the Loan agreement/any rights, obligations/ liabilities accruing
               to ICICI in relation to the Loan agreement and performance of the
               obligations under the Loan Agreement by the Obligor in any manner
               whatsoever.

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          (vi) The breach of the following financial covenants by the Option
               Seller:

               (a)  The Debt-Equity ratio of the Option Seller shall always be
                    less than 2:1

               (b)  The interest coverage ratio of the Option Seller shall
                    always be more than 2:1.

               (c)  The Tangible Networth of the Option Seller shall always be
                    above Rs. 14.00 billion.

               (d)  The ratio of total secured debt to Tangible Networth shall
                    not exceed 1.5:1.

          (vii) a default, event of default or other similar event or condition
               (however described) under the Put Option Agreement and other
               related deeds and documents;

          (viii) any representation made by the Option Seller is found to be
               false or incorrect in any respect;

          (ix) failure or inability of the Option Seller to comply with or
               perform any agreement or condition or undertaking or obligation
               as set forth herein and other related deeds and documents;

          (x)  if any bankruptcy, insolvency, liquidation or winding up
               proceedings has been initiated against the Option Seller/Obligor
               by any third party and continues for a period beyond one month
               from the date of such proceedings being admitted into a court of
               law or any other appropriate authority,

          (xi) if the Option Seller is unable to pay its debts within the
               meaning of Section 434 of the Companies Act, 1956 or has filed a
               petition for insolvency/ liquidation;

          (xii) any special resolution is passed resolving that the Option
               Seller/Obligor be wound up voluntarily;

          (xiii) the Option Seller is amalgamated with any other body corporate
               or any other body corporate is amalgamated with the Option Seller
               outside the Vedanta Group without the prior permission of the
               Option Buyer;

          (xiv) the Option Seller is amalgamated with any other body corporate
               or any other body corporate is amalgamated with the Option Seller
               within Vedanta Group resulting in a CRISIL rating downgrade.

          (xv) any petition for winding up of the Option Seller/Obligor is filed
               in any competent Court and such petition has not been stayed or
               dismissed within a period of 30 days after the same has been
               filed.

          (xvi) the Option Seller is prevented by any competent regulatory
               agency from carrying on the business which is presently being
               carried on by it;

          (xvii) breach of any of the conditions specified in any of the
               transaction Documentation;

          (xviii) the Option Seller has taken or suffered to be taken any action
               for its reconstruction (including a reference being made in
               respect of the Option Seller to BIFR under the provisions of Sick
               Industrial Companies (Special Provisions) Act, 1985 or to any
               other authority or person under any other law for the time being
               force, or from time to time) and/or change in management,
               liquidation or dissolution;

          (xix) a Receiver or Liquidator has been appointed or allowed to be
               appointed of all or any part of the undertaking of the Option
               Seller

          (xx) if an attachment or restraint has been levied on the Option
               Seller's properties or any part thereof or certificate
               proceedings have been taken or commenced for recovery of any dues
               from the Option Seller and the

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               Option Seller does not take effective steps to the satisfaction
               of Option Buyer for the cancellation of such attachment,
               restraint or certificate proceedings;

          (xxii) extra-ordinary circumstances have occurred which, in the
               opinion of the Option Buyer, make it improbable for the Option
               Seller, to fulfil its/their obligations under the Put Option
               Agreement respectively.

"RECEIVABLES": All amounts outstanding, due and payable under the Loan
Agreement.

"Vedanta group": Vedanta Resources plc through its associates and subsidiaries.

1.2 Capitalised expressions used but not defined herein shall have the same
meanings assigned to them in the Loan Agreement.

2.   PUT OPTION

     In consideration if ICICI paying the Option fee of Rs. 2.0 to the Option
     Seller, the Option Seller hereby grants and confers upon ICICI the option
     (Put option) on the terms contained herein :

2.1  At any time during the tenure of this Agreement, upon occurrence of any Put
     Option Event, the Option Seller shall immediately notify the Option Buyer
     of the occurrence of such an event.

2.2  Provided however, upon occurrence of any of the Put Option Events herein
     above the Option Seller shall be entitled to rectify the breach/defaults
     within 25 days of the notification of such event(s) by ICICI. After the
     expiry of the aforesaid period, the Option Buyer shall be entitled to
     notify Option Seller by issuing a written notice (Put Notice) requiring the
     Option Seller to purchase the Receivables. The Option Seller shall, on or
     before the 15th day from the date of issue of Put Option notice, purchase
     the Receivables and simultaneously make payment of the Option Price to the
     Option Buyer.

2.2  In the event of delay / default in payment of the Option Price within the
     stipulated time period, the Option Seller will pay the Option Price
     together with interest thereon @IBAR+8% per month (hereinafter referred to
     as the Default Rate) for the duration of the delay/ default. For the
     purpose of this clause ICICI Bank Benchmark Advance Rate (IBAR) shall mean
     and include the percentage rate per annum decided by the Bank from time to
     time and announced / notified by the Bank from time to time as its
     benchmark prime lending rate.

2.3  The delivery of the Put Notice shall constitute an irrevocable binding
     agreement and obligation on Sterlite to buy from ICICI all the Receivables
     upon payment of the Option Price by Sterlite and to execute the requisite
     document(s) to ensure the assignment of the Receivables to the Option
     Seller in the form and manner as specified by ICICI. The delivery of the
     Put Notice shall constitute a binding agreement and obligation of the
     Option Seller to buy from the Option Buyer all the Receivables upon payment
     of the Option Price to the Option Buyer.

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2.4  A certificate in writing signed by a duly authorised official of the Option
     Buyer shall be conclusive evidence against the Option Seller of the Option
     Price and all other amounts due and payable to the Option Buyer from the
     Option Seller.

2.5  The Put Notice shall specify:

     (i)  the Option Price;

     (ii) the Settlement Date

     (iii) location for the settlement in Mumbai.

2.6  On the Settlement Date:

     (a)  Option Seller shall pay/make, or cause to be paid/made to the Option
          Buyer an amount equivalent to the Option Price in Rupees along with
          all other monies payable by the Option Seller to the Option Buyer in
          respect of the said Put Option Notice.;

     (b)  Option Seller shall execute the requisite document(s) to ensure the
          assignment of the receivables as aforesaid and forward the same to the
          Option Buyer ;

     (c)  The Option Seller shall pay to the Option Buyer an amount equivalent
          to the Option Price along with all other monies payable under this
          agreement by the Option Seller to the Option Buyer which shall
          constitute full and final discharge of the Option Seller hereunder;

     (d)  In the event of delay on the part of the Option Seller in making
          payments to the Option Buyer and/or in respect of any costs charges,
          expenses, taxes, duties etc. as contemplated herein (including by way
          of indemnity), the Option Seller shall without prejudice to the Option
          Buyer's rights under the Put Option Agreement pay the defaulted
          amounts together with interest at the Default Rate computed from the
          date on which such amounts become due and payable till the date on
          which they are actually paid in full.

2.7  All transactions contemplated by this Agreement to be consummated on the
     Settlement Date as aforesaid shall be deemed to occur simultaneously and no
     such single transaction shall be consummated unless all such transactions
     are consummated.

2.8  The Option Seller shall not, until all monies due and payable by the Option
     Seller to the Option Buyer under the Put Option Agreement are paid in full,
     without the prior written approval of the Option Buyer:

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     (a)  contract, create, incur, assume or suffer to exist any indebtedness in
          any manner, in all such cases when such indebtedness causes the
          debt-equity ratio of the option seller to exceed 2:1 and the same
          shall be tested on a semi-annual basis;

     (b)  undertake or permit any merger, de-merger, consolidation
          reorganization outside the Vedanta Group (within the Vedanta group if
          it results in a CRISIL rating downgrade), scheme or arrangement or
          compromise with its creditors or shareholders or effect any scheme of
          amalgamation or reconstruction.

     (c)  Allow the ratio of total secured debt to tangible net worth to exceed
          1.5:1.

     (d)  engage in any business activity / project (other than the ongoing
          projects) so as to have a material adverse effect on its ability to
          perform its obligations hereunder;

     (e)  make any alteration or amendment in its constitutional documents so as
          to have a material adverse effect on its ability to perform its
          obligations hereunder, other than in the normal course of business.

2.9  In consideration of conferring the Put Option the Option fees aggregating
     to Rs.2.0 million shall be paid by the Option Buyer to the Option Seller on
     the Effective Date, which the Option Seller hereby confirms is sufficient
     and valid consideration.

2.10 This Agreement shall come into force from the date hereof.

2.11 The Put Option can be exercised on one or more occasions, and the Option
     Buyer can call upon the Option Seller to buy any part/whole of the
     receivables from time to time.

3.   REPRESENTATIONS WARRANTIES AND COVENANTS AND UNDERTAKINGS

The OPTION SELLER hereby represents and warrants and covenants that:

a)   The Option Seller represents and warrants that the debt equity ratio of the
     Option Seller as on March 31, 2004 is 1.68:1.

b)   The Option Seller shall, during the currency of this Agreement ensure that
     the following Financial Covenants, are met at all time:

     i.   The debt-equity ratio of the Option Seller shall always be less than
          2:1

     ii.  The interest coverage ratio of the Option Seller shall always be more
          than 2:1.

     iii. The Tangible Net worth of the Option Seller shall always be above Rs.
          14.00 billion.

     iv.  The ratio of total secured debt to Tangible Net worth shall not exceed
          1.5:1.

c)   The Option Seller shall provide monitoring report on a semi annual basis to
     the Option Buyer in such formats as may be specified by ICICI from time to
     time;

d)   The Option Seller shall promptly:

     (i)  notify the Option Buyer upon becoming aware, having used best
          endeavours, of the occurrence of any Put Option Event;

     (ii) notify the Option Buyer of any action or steps taken or legal
          proceedings started by or against it in any court of law for its
          winding-up, dissolution, liquidation, administration or
          re-organisation including a reference being made in respect of the
          Option Seller to BIFR under the provisions

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          of Sick Industrial Companies (Special Provisions) Act, 1985 or to any
          other authority or person under any other law for the time being
          force, or from time to time or for the appointment of a Receiver,
          administrator, administrative receiver, trustee or similar officer of
          the Option Seller or any or all of its assets;

     (iii) notify the Option Buyer of any material litigation, arbitration,
          administrative or other proceedings initiated or threatened against
          the Option Seller or any of its assets;

     (iv) deliver to the Option Buyer its duly audited annual accounts;

e)   The Option Seller shall do all acts, deeds and things (at its own costs and
     expenses) to forthwith:

     (I)  procure stay or dismissal of the legal proceedings started against it
          in any court of law for its winding-up, dissolution, bankruptcy and
          liquidation, or for the appointment of a receiver, administrator,
          administrative receiver, trustee or similar officer or a reference
          being made in respect of the Option Seller to BIFR under the
          provisions of Sick Industrial Companies (Special Provisions) Act, 1985
          or to any other authority or person under any other law for the time
          being force, or from time to time;

     (II) Procure stay or dismissal of the attachment or restraint levied on the
          Option Seller's properties or any part thereof or certificate
          proceedings taken or commenced for recovery of any dues from the
          Option Seller;

f)   The Option Seller has full power and authority for the execution,
     performance and delivery of the Put Option Agreement

g)   This Agreement does not violate any law, order or judgement of any court or
     any statutory/regulatory authority or any contractual agreement binding on
     the Option Seller and constitutes a legal, valid and binding obligation on
     the Option Seller, enforceable in accordance with terms hereof;

h)   The execution delivery and performance of this Agreement or any transaction
     contemplated herein have been duly authorised by all necessary corporate
     action in accordance with terms hereof;

i)   All authorisations, consents, approvals and licenses required for the
     execution, delivery and performance of this Agreement have been duly
     obtained or granted and are in full force and effect.

j)   No Put Option Event has occurred and continuing and is continuing.

k)   There is no pending or, threatened suit against the Option Seller,or any
     action, suit or proceedings at law or before any court or agency that is
     likely to have a material adverse effect on its ability to perform its
     obligations hereunder.

l)   The Option Seller shall comply with all applicable laws and orders to which
     it may be subject, to in connection with the performance of its obligations
     under the Put Option Agreement.

m)   The Option Seller shall maintain in full force and effect all consents and
     authorisations that are required to be obtained by it with respect to the
     Put Option/ Put Option Agreement and will obtain any consent/ authorisation
     that may become necessary in the future.

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4.   MISCELLANEOUS

4.1  Costs and Charges

     The Option Seller shall pay all costs, charges and expenses (including
     taxes, stamp duty) and such other additional stamp duty, other duties,
     taxes (including any taxes stamp duty charges and other duties which may
     have any retrospective effect) charges and other penalties, if any relating
     to the Loan Agreement, Put Option Agreement and other transaction documents
     (including any document(s) pertaining to the Assignment of the receivables)
     in connection with the transaction contemplated in such agreements /
     documents, in a form and manner satisfactory to the Option Buyer, as per
     the then prevailing applicable laws.

4.2  Notices

     Any notice or other communication given pursuant to this Agreement must be
     in writing and (a) delivered personally, (b) sent by facsimile transmission
     (c) or sent by registered mail, postage prepaid, as follows:

     If to Sterlite:

     Sterlite Industries (India) Ltd.
     Vedanta, 75, Nehru Road
     Ville Parle (East), Mumbai - 400099

     Fax : +9122 56461450
     Attn: Mr. B Anand
           Vice President

     If to ICICI:

     ICICI Bank Limited
     ICICI Bank Towers
     Bandra-Kurla Complex
     Mumbai 400051
     Fax : +91-22-6531266
     Attn: Smt. Suvalaxmi Chakraborty
           General Manager

     If to INDIA FOILS:
     India Foils Ltd.
     1, Sagar Dutta Ghat Road
     Kamarhatti, Kolkata - 700 058

     Fax : +9133 5832230
     Attn: Mr. Sandeep Agrawal
           Head Finance & Co. Secretary

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     All the notices and other communications required or permitted under this
     Agreement that are addressed as provided in this Section 5.2 will :

          (a)  if delivered personally or by courier, be deemed given upon
               delivery;

          (b)  if delivered by facsimile transmission, be deemed given when
               electronically confirmed; and

          (c)  if sent by registered mail, be deemed given when received.

     Any Party from time to time may change its address for the purpose of
     notices to that Party by giving a similar notice specifying a new address,
     but no such notice will be deemed to have been given until it is actually
     received by the Party sought to be charged with the contents thereof.

4.3  Entire Agreement

     This Agreement supersedes all prior discussions and agreements (whether
     oral or written, including all correspondence) among all of the Parties or
     some of the parties with respect to the subject matter of this Agreement,
     and this Agreement contains sole and entire Agreement between the Parties
     hereto with respect to the subject matter hereof.

4.4  Waiver

     Any term or condition of this Agreement may be waived at any time by the
     party that is entitled to the benefit thereof. Such waiver must be in
     writing and must be executed by an authorised officer of such party. A
     waiver on one occasion will not be deemed to be a waiver of the same or
     either under breach or non-fulfilment on a future occasion. All remedies,
     either under this agreement, or by law or otherwise afforded, will be
     cumulative and not alternative.

4.5  Amendment

     This Agreement may be modified or amended only by writing duly executed by
     or on behalf of each of the parties.

4.6  Assignment

     The Option Seller shall not sell, assign encumber, transfer and/or dispose
     in any manner the rights, title interest, benefits and /or obligations
     under or pursuant to the Put Option Agreement to any person.

4.7  Severability

     If any provision of this Agreement is held to be illegal, invalid, or
     unenforceable under any present or future law, and if the rights or

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     obligations under this Agreement of the parties will not be materially and
     adversely affected thereby (a) such provision will be fully severable; (b)
     this agreement will be construed and enforced as if such illegal, invalid,
     or unenforceable provision had never comprised a part hereof: and (c) the
     remaining provisions of the agreement will remain in full force and effect
     and will not be affected by the illegal, invalid, or unenforceable
     provision or by its severance herefrom.

4.8  Dispute Resolution

(a)  Any and all disputes or differences between the parties arising out of or
     in connection with this Agreement or its performance shall, so far as it is
     possible, be settled amicably between the Parties.

(b)  All disputes arising out of this Agreement shall be subject to the
     exclusive jurisdiction of the courts or tribunals of Mumbai.

4.9  Indemnity

     The Option Seller shall as its primary obligation indemnify the Option
     Buyer, its successors, and assigns from time to time on demand by the
     Option Buyer from and against any losses, damages, liabilities, suits,
     claims, counterclaims, actions, penalties, expenses (including attorney's
     fees and court costs), incurred by the Option Buyer as a result of (i) any
     breach of the Option Seller's warranties, representations, covenants,
     undertakings or agreement contained herein and other related documents; and
     (ii) occurrence of a Put Option Event (iii) the obligations of the Option
     Seller under or pursuant to the Put Option Agreement and other related
     deeds and documents being or becoming void, voidable, unenforceable or
     ineffective against the Option Seller, for any reason whatsoever, the
     amount of such loss being the amount which the Option Buyer would otherwise
     have been entitled to recover from the Option Seller under or pursuant to
     the Put Option Agreement and other related deeds and documents.

     The Option seller shall indemnify the Option Buyer for any stamp duties,
     income tax and other levies that may become payable in connection with the
     execution of the deeds and documents and pursuant to which the Option
     Seller will purchase the Receivables or beneficial interest therein for the
     due and timely compliance of the Option Seller's obligations under the Put
     Option Agreement.

4.10 The Option Seller shall not disclose any of the terms and conditions
     contained herein nor shall make any announcement to the public or to any
     third party regarding the arrangements contemplated by the Put Option
     Agreement and this term sheet without the prior written consent of the
     Option Buyer.

4.11 This Agreement shall be valid and enforceable independently of the
     Corporate Guarantee dated 08.02.05 issued by Sterlite in favour of ICICI
     (whether capable of being invoked or performed) and also independently and
     irrespective of whether

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     reference being made in respect of the Option Seller and/or the Obligor to
     BIFR under the provisions of Sick Industrial Companies (Special Provisions)
     Act, 1985 or to any other authority or person under any other law for the
     time being force, or from time to time.

4.12 Power of Attorney

     The Option Seller hereby authorises the Option Buyer as its constituted
     attorney to do all acts deeds and things for and on behalf of the Option
     Seller to ensure the due and timely compliance of the Option Seller's
     obligation under this Agreement in a form and manner satisfactory the
     Option Buyer, including, without limitation:

     1.   to execute all deeds and documents including the execution of the
          deeds and documents pursuant to which the Option Seller will purchase
          the Receivables or beneficial interest therein;

     2.   to do all such acts, deeds and things as may be required and to make,
          execute, sign, seal and deliver and cause to be registered (if
          required) in favour of the Option Seller the deeds and documents as
          mentioned in Section 5.10 (1) above;

     3.   to engage any lawyer, counsel or any other professional experts in any
          court of law or before any arbitrator or authority for and on behalf,
          and at the sole cost, of the Option Seller in respect of or in
          connection with the or pursuant to this Agreement;

     4.   to appoint or remove any agent or agents with all or any of the powers
          aforesaid;

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the
day and year first hereinabove written as hereinafter appearing.

The Common Seal of STERLITE INDUSTRIES
(India) LIMITED has, pursuant to the
Resolution of its Business Committee of
Directors (duly authorised in that
behalf by the Board of Directors vide
their resolution dated 28th Jan. 05)                 /s/ Navin Agarwal
passed in that behalf on the 28th day of
January 2005, hereunto been affixed                  /s/ Ramesh Venkat
in the presence of Shri Navin Agarwal -
Director of the Company who has signed
these presents in token thereof and Shri
Ramesh Venkat, Director of the Company,
who has counter signed the same in token
thereof.

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Signed and Delivered on behalf of
ICICI Bank Limited, duly authorised
in that behalf, in the presence of:

By:                                         (SIGNED)
    ---------------------------------
Name:
      -------------------------------
Designation:
             ------------------------

Signed and Delivered on behalf of
INDIA FOILS LIMITED, withinnamed the
Obligor, duly authorised in that
behalf, in the presence of:

By: Indrajit Mukherjee                      /s/ Indrajit Mukherjee
    ---------------------------------
Name: Sandeep Agarwal                       /s/ Sandeep Agarwal
Designation:
             ------------------------

                                                                         PAGE 12<PAGE>

                                                                   EXHIBIT 10.20

                              *CORPORATE GUARANTEE

THIS DEED OF GUARANTEE executed at Mumbai this 8th day of February Two Thousand
and Five by STERLITE INDUSTRIES (INDIA) LIMITED, a company within the meaning of
the Companies Act, 1956 and having its Registered Office at B10/4 Waluj M.I.D.C.
Industrial Area, Waluj, Dist. Aurangabad, Maharashtra (hereinafter referred to
as "the Guarantor", which expression shall, unless it be repugnant to the
subject or context thereof, include its successors and permitted assigns)

                                  in favour of

ICICI BANK LIMITED, a public company incorporated under the Companies Act, 1956
and a banking company within the meaning of the Banking Regulation Act, 1949,
having its registered office at Landmark, Race Course Circle, Vadodara 390 007
and its corporate office at ICICI Bank Towers, Bandra Kurla Complex, Mumbai 400
051 / and Regional Office at 2B, Gorky Terrace, Calcutta 700 017 (hereinafter
referred to as 'the Lenders", which expression shall, unless it be repugnant to
the subject or context thereof, include its successors and assigns).

----------
*    The Guarantee to be accompanied by requisite approvals eg, Board
     Resolutions, approval under Section 372 A, Legal opinion from counsel in
     case of offshore guarantor, other

<PAGE>

WHEREAS

(1)       INDIA FOILS LIMITED, a Company within the meaning of the Companies
          Act,1956, and having its Registered Office at 1, Sagore Dutta Ghat
          Road, Kamarhati, Calcutta -700 058. (hereinafter referred to as
          "the Borrower") has requested the lenders to lend and advance to it
          Rupee term loan of Rs.1020 million (Rupees One thousand and twenty
          million)

(1)(2)    The Lenders have agreed in principle to lend and advance to the
          Borrower sum to the maximum extent of Rs. 1020.0 million (Rupee One
          thousand and twenty only)(hereinafter referred to as "the Facility")
          on the terms and conditions contained in the ** Corporate Rupee loan
          Facility Agreement dated the 8th day of February 2005 read together
          with the Letter of Amendment dated the 8th day of February entered
          into between the Borrower and the Lenders (hereinafter referred to as
          "the Facility Agreement").

OR

(2)(2)(a) The Lenders have agreed in principle to lend and advance to the
          Borrower sum to the maximum extent of Rs. 1020.0 million (Rupees One
          thousand and twenty million only)(hereinafter referred to as
          "the Facility") inter alia, on the terms and, conditions contained in
          the Letter of Intent No.     dated the 8th day of Feb 2005 addressed
          by the Lenders to the Borrower, the General Conditions No. GC-C-99.
          * *and in the Standard Corporate Rupee loan Facility Agreement to be
          entered into between the Borrower and the lenders, the terms,
          conditions and provisions whereof have been noted by the Guarantors
          (hereinafter collectively referred to as "the Facility Agreement").

NOW THIS DEED WITNESSETH AS FOLLOWS:

In consideration of the premises, the Guarantors hereby unconditionally,
absolutely and irrevocably guarantee to and agree with the Lenders as follows:

(1)  The Lenders shall have the sole discretion -

     (i)  to make disbursement(s) and/or interim disbursement(s) to the Borrower
          from out of the Facility and/or at such time, on such conditions and
          in such manner as the Lenders may decide.

(2)  The Borrower shall duly and punctually repay the *Facility together with
     all interest, liquidated damages, commitment charges, premia on prepayment
     or on

--------------------------------------------------------------------------------

(1)  To be returned if Facility Agreement is executed on date of execution of
     Guarantee.
(2)  To be retained if Facility Agreement is not executed on date of execution
     of Guarantee.

*    Delete whichever is not applicable

<PAGE>

     redemption, costs, expenses, and other monies including in any increase as
     a result of devaluation! revaluation/ fluctuation in the rate of exchange
     of the foreign currencies involved in accordance with the. Facility
     Agreement and perform and comply with all the other terms, conditions and
     covenants contained in the Facility Agreement.

3.   In the event of any default on the part of the Borrower in payment/
     repayment of any of the moneys referred to above, or in the event of any
     default on the part of the Borrower to comply with or perform any of the
     terms, conditions and covenants contained in the Facility Agreement, the
     Guarantors shall, upon demand, forthwith pay to the lenders without demur
     all the amounts payable by the Borrower under the Facility Agreement.

4.   The Guarantors shall also indemnify and keep the lenders indemnified
     against all losses, damages, costs, claims and expenses whatsoever which
     the Lenders may suffer, payor incur by reason of or in connection with any
     such default on the part of the Borrower including legal proceedings taken
     against the Borrower and/or the Guarantors for recovery of the moneys
     referred to in Clause 2 above.

*    Delete if not applicable.

5.   The Guarantors hereby agree that, without the concurrence of the
     Guarantors, the Borrower and the Lenders shall be at liberty to vary, alter
     or modify the terms and conditions of the Facility Agreement and of the
     security documents executed by the Borrower in favour of the Lenders and in
     particular to defer, postpone or revise the repayment of the Facility
     and/or payment of interest and other monies payable by the Borrower to the
     Lenders on such terms and conditions as may be considered necessary by the
     Lenders including any increase in the rate of interest. The Lenders shall
     also be at liberty to absolutely dispense with or release all or any of the
     security/securities furnished or required to be furnished by the Borrower
     to the Lenders to secure the Facility. The Guarantors agree that the
     liability under this Guarantee shall in no manner be affected by any such
     variations, alterations, modifications, waiver, dispensation with or
     release of security, and that no further consent of the Guarantors is
     required for giving effect to any such variation, alteration, modification,
     waiver, dispensation with, or release of security.

6.   The Lenders shall have full liberty, without notice to the Guarantors and
     without in any way affecting this guarantee, to exercise at any time and in
     any manner any power or powers reserved to the Lenders under the Facility
     Agreement, to enforce or forbear to enforce payment of the Facility or any
     part thereof or interest or other moneys due to the Lenders from the
     Borrower or any of the remedies or securities available to the Lenders, to
     enter into any composition or compound with or to grant time or any other
     indulgence or facility to the Borrower AND the Guarantors shall not be
     released by the exercise by the Lenders of their liberty in regard to the
     matters referred to above or by any act or omission on the part of the
     Lenders or by any other matter or thing whatsoever which under the law
     relating to sureties would but for this provision have the effect of so
     releasing the Guarantors AND the Guarantors hereby waive in favour of the
     Lenders so far as may be necessary to give effect to any of the provisions
     of this Guarantee, all the suretyship and other rights which the Guarantors
     might otherwise be entitled to enforce.

7.   This Guarantee shall be enforceable against the Guarantors notwithstanding
     that

<PAGE>

     any security or securities comprised in any instrument(s) executed or to be
     executed by the Borrower in favour of the Lenders shall, at the time when
     the proceedings are taken against the Guarantors on this Guarantee, be
     outstanding or unrealised or lost.

8.   The Guarantors hereby agree and give consent to the sale, mortgage on
     prior, pari passu or second charge basis, release etc., of any of the
     assets by the Borrower from time to time as may be approved by the Lenders
     or the transfer of any of the assets of the Borrower from one unit to the
     other or to the release or lease out by the Lenders any or whole of the
     assets charged to the Lenders on such terms and I conditions as the Lenders
     may deem fit and this may be treated as a standing and continuing consent
     for each and every individual act of transfer, mortgage, release or lease
     of any of such assets of the Borrower. The Guarantors hereby declare and
     agree that no separate consent for each such transfer, mortgage, release or
     lease any of such assets would be necessary in future.

9.   The Guarantors hereby agree and declare that the Borrower will be free to
     avail of further Loan or other facilities from the Lenders or any other
     financial institution or bank in addition to the Facility and/or to secure
     the same during the subsistence of this guarantee and in that event the
     guarantee herein contained will not be affected or vitiated in any way
     whatsoever but will remain in full force and effect and binding on the
     Guarantors.

10.  The rights of the Lenders against the Guarantors shall remain in full force
     and effect notwithstanding any arrangement which may be reached between the
     Lenders and the other Guarantor/s, if any, or notwithstanding the release
     of that other or others from liability and notwithstanding that any time
     hereafter the other Guarantor/s may cease for any reason whatsoever to be
     liable to the Lenders, the Lenders shall be at liberty to require the
     performance by the Guarantors of their obligations hereunder to the same
     extent in all respects as if the Guarantors had at all times been solely
     liable to perform the said obligations.

11.  To give effect to this Guarantee, the Lenders may act as though the
     Guarantors were the principal debtors to the Lenders.

12.  The Guarantors hereby declare and agree that they have not received and
     shall not, without the prior consent in writing of the Lenders receive any
     security or commission from the Borrower for giving this guarantee so long
     any monies remain due and payable by the Borrower to the Lenders under the
     Facility Agreement.

13.  The Guarantors shall not in the event of the liquidation of the Borrower
     prove in competition with the Lenders in the liquidation proceedings.

14.  A certificate in writing signed by a duly authorised official of the
     Lenders shall be conclusive evidence against the Guarantors of the amount
     for the time being due to the Lenders from the Borrower in any action or
     proceeding brought on this Guarantee against the Guarantors.

15.  This Guarantee shall not be wholly or partially satisfied or exhausted by
     any payments made to or settled with the Lenders by the Borrower and shall
     be valid and binding on the Guarantors and operative until repayment in
     full of all moneys due to the Lenders under the Facility Agreement/Bridge
     Loan Agreement.

<PAGE>

16.  This Guarantee shall be irrevocable and the obligations of the Guarantors
     hereunder shall not be conditional on the receipt of of any prior notice by
     the Guarantors or by the Borrower and the demand or notice by the Lenders
     as provided In Clause 20 hereof shall be sufficient notice to or demand on
     the Guarantors.

17.  The liability of the Guarantors under this Guarantee shall not be affected
     by-

     i)   any change in the constitution or winding up of the Borrower or any
          absorption, merger or amalgamation of the Borrower with any other
          company, corporation or concern; or

     ii)  any change in the management of the Borrower or take over of the
          management of the Borrower by Central or State Government or by any
          other authority; or

     (iii) acquisition or nationalisation of the Borrower and/ or of any of its
          undertaking(s) pursuant to any law; or

     iv)  any change in the constitution of the Lenders; or

     v)   any change in the set up of the Guarantors which may be by way of
          change in the constitution, winding up voluntary or otherwise,
          absorption, merger or amalgamation or otherwise; or

     vi)  the absence or deficiency of powers on the part of the Guarantors to
          give guarantees and/ or indemnities or any irregularity in the
          exercise of such powers.

18.  This Guarantee shall be a continuing one and shall remain in full force and
     effect till such time the Borrower repays in full the Facility/Bridge Loans
     together with all interest, liquidated damages, commitment charges, premia
     on prepayment or on redemption, costs, expenses and other monies including
     any increase as a result of devaluation/ revaluation/ fluctuation in the
     rate of foreign currencies involved that may from time to time become due
     and payable and remain unpaid to the Lenders under the Facility
     Agreement/Bridge Loan Agreement.

19.  The liability of the Guarantors hereunder shall not exceed the sum of Rs.
     1020.0 million plus all interest, liquidated damages, commitment charge,
     premia on prepayment or on redemption, costs, expenses and other monies
     payable by the Borrower to the Lenders under the Facility Agreement/Bridge
     Loan Agreement.

20.  Any demand for payment or notice under this Guarantee shall be sufficiently
     given if sent by post to or left at the last known address of the
     Guarantors or their successors or assigns, as the case may be, such demand
     or notice is to be made or given, and shall be assumed to have reached the
     addressee in the course of post, if given by post, and no period of
     limitation shall commence to run in favour of the Guarantors until after
     demand for payment in writing shall have been made or given as aforesaid
     and in proving such notice when sent by post it shall be sufficiently
     proved that the envelope containing the notice was posted and a certificate
     by any of the responsible officers of the Lenders that to the best of his

<PAGE>

     knowledge and belief, the envelope containing the said notice was so posted
     shall be conclusive as against the Guarantors, even though it was returned
     unserved on account of refusal of the Guarantors or otherwise.

21.  This Guarantee shall be governed by and construed in accordance with the
     laws of India.

22.  The Guarantors agree that any legal action or proceedings arising out of
     this Guarantee shall be brought in the courts or tribunals at Mumbai in
     India and irrevocably submit themselves to the jurisdiction of such courts
     and tribunals. The Lenders may, however, in their absolute discretion
     commence any legal action or proceedings arising out of this Guarantee in
     any other court, tribunal or other appropriate forum, and the Guarantors
     hereby consent to that jurisdiction.

23.  Any provision of this Guarantee which is prohibited or unenforceable in any
     jurisdiction shall, as to such jurisidiction, be ineffective to the extent
     of prohibition or unenforceability but shall not invalidate the remaining
     provisions of this Guarantee or affect such provision in any other
     jurisdiction.

24.  The Guarantors hereby agree, confirm and undertake that:

     (1)  The Lenders shall, as it may deem appropriate and necessary, be
          entitled to disclose all or any:

     (i)  information and data relating to the Guarantors;

     (ii) information or data relating to this Guarantee or any other
          guarantee(s) furnished by the Guarantors in favour of the Lenders;

     (iii) obligations assumed / to be assumed by the Guarantors in relation to
          the Facility under this Guarantee or any other guarantee furnished by
          the Guarantors for any other credit facility granted / to be granted
          by the Lenders;

     (iv) default, if any, committed by the Guarantors in discharge of the
          aforesaid obligations,

          to any agency / credit bureau ("the Agency") authorised in this behalf
          by Reserve Bank of India ("RBI");

     (2)  The Agency so authorised may use, process the aforesaid information
          and data disclosed by the Lenders in the manner as deemed fit by them;

     (3)  The Agency so authorised may furnish for consideration, the processed
          information and data or products thereof prepared by them, to banks /
          financial institutions and other credit grantors or registered users,
          as may be specified by RBI in this behalf;

     (4)  The information and data furnished by the Guarantors to the Lenders
          from time to time shall be true and correct.

*25. The Guarantors agree and declare that the rights and powers conferred on
     the Lenders by these presents shall be joint and several and shall be
     deemed always to be so and they may be exercised by the Lenders
     accordingly.

*    Applicable only if joint and several Corporate Guarantee is given.

<PAGE>

IN WITNESS WHEREOF the Guarantors has caused its Common Seal to be affixed to
these presents on the day I month and year first hereinabove written.

**The Common Seal of                         )
Limited has, pursuant to the Resolution of   )
its Board of Directors passed in that behalf ) /s/ Shri Navin Agarwal
on the 28th day of January 2005, hereunto    )
been affixed in the presence of Shri Navin   ) /s/ Shri Ramesh Venkat
Agarwal, Directors who have signed these     )
presents in token) thereof and Shri Ramesh   )
Venkat Secretary / authorized person who has )
countersigned the same in token thereof.     )

**    In accordance with Articles of Association of the Guarantors

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