Document:

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                                                                   EXHIBIT 10.13

(CLIFFORD CHANCE LOGO)                             LIMITED LIABILITY PARTNERSHIP

                                                                  EXECUTION TEXT

                               DATED 29 JULY 2005

                                     between

                             HINDUSTAN ZINC LIMITED

                                   as Borrower

                                   arranged by

                               ABN AMRO BANK N.V.
                                     CALYON
                             STANDARD CHARTERED BANK
                            acting as Lead Arrangers

                                      with

                               ABN AMRO BANK N.V.
                                    as Agent

                                       and

               THE FINANCIAL INSTITUTIONS SPECIFIED IN SCHEDULE 1
                               as Original Lenders

                                   ----------

                           ONE HUNDRED AND TWENTY-FIVE
                   MILLION DOLLAR ($125,000,000) TERM FACILITY
                                    AGREEMENT

                                   ----------

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                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                      PAGE
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<S>                                                                         <C>
1.     Definitions And Interpretation....................................     1
2.     The Facility......................................................    12
3.     Purpose...........................................................    12
4.     Conditions Of Utilisation.........................................    12
5.     Utilisation.......................................................    14
6.     Repayment.........................................................    15
7.     Prepayment And Cancellation.......................................    15
8.     Interest..........................................................    17
9.     Interest Periods..................................................    18
10.    Changes To The Calculation Of Interest............................    18
11.    Fees..............................................................    19
12.    Tax Gross Up And Indemnities......................................    20
13.    Increased Costs...................................................    22
14.    Other Indemnities.................................................    23
15.    Mitigation By The Lenders.........................................    24
16.    Costs And Expenses................................................    24
17.    Representations...................................................    26
18.    Information Undertakings..........................................    29
19.    Financial Covenants...............................................    31
20.    General Undertakings..............................................    34
21.    Events Of Default.................................................    38
22.    Changes To The Lenders............................................    42
23.    Changes To The Borrower...........................................    45
24.    Role Of The Agent And The Lead Arrangers..........................    46
25.    Conduct Of Business By The Finance Parties........................    51
26.    Sharing Among The Finance Parties.................................    51
27.    Payment Mechanics.................................................    54
28.    Set-Off...........................................................    56
29.    Notices...........................................................    56
30.    Calculations And Certificates.....................................    58
31.    Partial Invalidity................................................    59
32.    Remedies And Waivers..............................................    59
</TABLE>

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<TABLE>
<S>                                                                         <C>
33.    Amendments And Waivers............................................    59
34.    Counterparts......................................................    60
35.    Governing Law.....................................................    61
36.    Enforcement.......................................................    61

Schedule 1 THE ORIGINAL PARTIES..........................................    62
       Part I The Borrower...............................................    62
       Part II The Original Lenders......................................    63

Schedule 2 CONDITIONS PRECEDENT..........................................    64

Schedule 3 REQUESTS......................................................    66
       Part I Utilisation Request........................................    66
       Part II Selection Notice..........................................    68

Schedule 4 MANDATORY COST FORMULAE.......................................    69

Schedule 5 FORM OF TRANSFER CERTIFICATE..................................    71

Schedule 6 FORM OF COMPLIANCE CERTIFICATE................................    73
</TABLE>
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THIS AGREEMENT is dated this 29 July 2005 and made between:

(1)  HINDUSTAN ZINC LIMITED (the "BORROWER");

(2)  ABN AMRO BANK N.V., CALYON AND STANDARD CHARTERED BANK (the "LEAD
     ARRANGERS");

(3)  THE FINANCIAL INSTITUTIONS listed in Part II of Schedule 1 (The Original
     Parties) as lenders (the "ORIGINAL LENDERS"); and

(4)  ABN AMRO BANK N.V., as agent of the other Finance Parties (the "AGENT").

IT IS AGREED as follows:

                                    SECTION 1
                                 INTERPRETATION

1.   DEFINITIONS AND INTERPRETATION

1.1  DEFINITIONS

     In this Agreement:

     "ACCESSION AGREEMENT" means any and each accession agreement entered into
     on or after the date hereof, in respect of primary syndication of this
     Facility, pursuant to which an Original Lender will transfer a portion of
     its Commitments to new Lenders.

     "ADDITIONAL COST RATE" has the meaning given to it in Schedule 4 (Mandatory
     Cost formulae).

     "AFFILIATE" means, in relation to any person, a Subsidiary of that person
     or a Holding Company of that person or any other Subsidiary of that Holding
     Company.

     "AGENCY FEE LETTER" means the agency fee letter entered into, or to be
     entered into between the Borrower and the Agent.

     "ARRANGEMENT FEE LETTER" means the arrangement fee letter entered into or
     to be entered into between the Borrower and the Lead Arrangers.

     "AUTHORISATION" means an authorisation, consent, approval, resolution,
     licence, exemption, filing, notarisation or registration.

     "AUTHORISED SIGNATORY" means the managing director, a director or the chief
     financial officer of the Borrower, or any person so authorised by the board
     of directors of the Borrower.

     "AVAILABILITY PERIOD" means the period from and including the date of this
     Agreement to and including the date which is fourteen (14) days after the
     date of this Agreement (or such later date as may be agreed between the
     Lenders and the Borrower) provided that if the Availability Period would
     otherwise end on a day which is not a Business Day, it will instead end on
     the preceding Business Day.

                                       -1-

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     "AVAILABLE COMMITMENT" means a Lender's Commitment.

     "AVAILABLE FACILITY" means the aggregate for the time being of each
     Lender's Available Commitment under the Facilities.

     "BREAK COSTS" means the amount (if any) by which:

     (a)  the interest which a Lender should have received for the period from
          the date of receipt of all or any part of its participation in a Loan
          or Unpaid Sum to the last day of the current Interest Period in
          respect of that Loan or Unpaid Sum, had the principal amount or Unpaid
          Sum received been paid on the last day of that Interest Period;

     exceeds:

     (b)  the amount which that Lender would be able to obtain by placing an
          amount equal to the principal amount or Unpaid Sum received by it on
          deposit with a leading bank in the Relevant Interbank Market for a
          period starting on the Business Day following receipt or recovery and
          ending on the last day of the current Interest Period.

     "BUSINESS DAY" means a day (other than a Saturday or Sunday) on which banks
     are open for general business in Mumbai, Singapore, London and New York.

     "COMMITMENT" means:

     (a)  in relation to the Original Lenders, the amount set opposite its name
          under the heading "TOTAL COMMITMENT" in Part II of Schedule 1 (The
          Original Lenders) being the aggregate of its Tranche A Commitment,
          Tranche B Commitment, and Tranche C Commitment, and the amount of any
          other Commitment transferred to it under this Agreement; and

     (b)  in relation to any other Lender, the amount of any Commitment
          transferred to it under this Agreement,

     to the extent not cancelled, reduced or transferred by it under this
     Agreement.

     "COMPLIANCE CERTIFICATE" means a certificate substantially in the form set
     out in Schedule 6 (Form of Compliance Certificate).

     "CONTROL" (or any derivative thereof) means the power (whether by way of
     ownership of shares, proxy, contract, agency or otherwise) to:

     (a)  appoint or remove the majority of the directors or other equivalent
          officers of the Borrower; or

     (b)  give directions with respect to the operating and financial policies
          of the Borrower which the directors or other equivalent officers of
          the Borrower are obliged to comply with; or

     (c)  direct the affairs of the Borrower and/or control the composition of
          the majority of the board of directors (or equivalent body) of the
          Borrower.

                                       -2-

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     "CORE BUSINESS" means all of the business, assets and undertaking of the
     Borrower from time to time in relation to its operations as a zinc and lead
     mining and smelting company and any ancilliary operations, including energy
     related operations.

     "DEFAULT" means an Event of Default or any event or circumstance specified
     in Clause 21 (Events of Default) which would (with the expiry of a grace
     period, the giving of notice, the making of any determination under the
     Finance Documents or any combination of any of the foregoing) be an Event
     of Default.

     "EVENT OF DEFAULT" means any event or circumstance specified as such in
     Clause 21 (Events of Default).

     "FACILITY" means each of:

     (a)  the Tranche A Facility made available under this Agreement;

     (b)  the Tranche B Facility made available under this Agreement; and

     (c)  the Tranche C Facility made available under this Agreement.

     "FACILITY OFFICE" means the office or offices notified by a Lender to the
     Agent in writing on or before the date it becomes a Lender (or, following
     that date, by not less than five Business Days' written notice) as the
     office or offices through which it will perform its obligations under this
     Agreement.

     "FEE LETTERS" means the Arrangement Fee Letter and the Agency Fee Letter.

     "FINANCE DOCUMENT" means this Agreement, the Accession Agreement, the
     Relevant Documents Letter, the Fee Letters and any other document
     designated as such by the Agent and the Borrower.

     "FINANCE PARTY" means the Agent, the Lead Arrangers or any Lender.

     "FINANCIAL INDEBTEDNESS" means any indebtedness for or in respect of:

     (a)  moneys borrowed;

     (b)  any amount raised by acceptance under any acceptance credit facility;

     (c)  any amount raised pursuant to any note purchase facility or the issue
          of bonds, notes, debentures, loan stock or any similar instrument;

     (d)  the amount of any liability in respect of any lease or hire purchase
          contract which would, in accordance with GAAP, be treated as a finance
          or capital lease;

     (e)  receivables sold or discounted (other than any receivables to the
          extent they are sold on a non-recourse basis);

     (f)  any amount raised under any other transaction (including any forward
          sale or purchase agreement) having the commercial effect of a
          borrowing;

     (g)  any derivative transaction entered into in connection with protection
          against or benefit from fluctuation in any rate or price (and, when
          calculating the value of

                                       -3-

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          any derivative transaction, only the marked to market value shall be
          taken into account);

     (h)  any counter-indemnity obligation in respect of a guarantee, indemnity,
          bond, standby or documentary letter of credit or any other instrument
          issued by a bank or financial institution;

     (i)  any amount raised by the issue of redeemable shares;

     (j)  any amount of any liability under an advance or deferred purchase
          agreement if one of the primary reasons behind the entry into this
          agreement is to raise finance; and

     (k)  (without double counting) the amount of any liability in respect of
          any guarantee or indemnity for any of the items referred to in
          paragraphs (a) to (j) above.

     "FINANCIAL INVESTMENTS" means:

     (a)  debt instruments issued by, or fully guaranteed or insured by, the
          government of the Republic of India;

     (b)  investments in mutual funds;

     (c)  certificates of deposit, debt instruments or deposits with commercial
          banks and/or their Subsidiaries;

     (d)  debt securities issued by any company or institution with a rating
          from CRISIL Limited of not less than AA or an equivalent rate from
          ICRA Limited, Credit Analysis and Research Limited or Fitch Ratings
          India Pvt Ltd.,

     in each case not subject to any Security and denominated and payable in
     Indian rupees (INR).

     "FIRST FACILITY AGREEMENT" means the facility agreement dated 31 March 2003
     between the Borrower, as borrower and ANZ Investment Bank, as agent,
     arranger and original lender, as amended from time to time.

     "GAAP" means generally accepted accounting principles in India.

     "GROUP" means the Borrower and its Subsidiaries for the time being.

     "HOLDING COMPANY" means, in relation to a company or corporation, any other
     company or corporation in respect of which it is a Subsidiary.

     "INFORMATION MEMORANDUM" means any document concerning the Borrower which,
     at the Borrower's request and on its behalf, is or is to be prepared in
     relation to this transaction, approved by the Borrower and distributed by
     the Lead Arrangers prior to the date of this Agreement in connection with
     syndication.

                                       -4-

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     "INTEREST PERIOD" means, each period determined in accordance with Clause 9
     (Interest Periods) and in relation to an Unpaid Sum, each period determined
     in accordance with Clause 8.4 (Default Interest) of this Agreement.

     "LENDER" means:

     (a)  any Original Lenders under this Agreement; and

     (b)  any bank, financial institution, trust, fund or other entity which has
          become a Party under an Accession Agreement or otherwise in accordance
          with Clause 22 (Changes to the Lenders),

     which in each case has not ceased to be a Party in accordance with the
     terms of this Agreement.

     "LIBOR" means:

     (a)  the applicable Screen Rate; or

     (b)  (if no Screen Rate is available for dollars or for the Interest Period
          of that Loan) the arithmetic mean of the rates (rounded upwards to
          four decimal places) as supplied to the Agent, at its request and
          quoted by the Reference Banks to leading banks in the London interbank
          market,

     as of 11am (London time) on the Quotation Day for the offering of deposits
     in dollars and for a period comparable to the Interest Period for that
     Loan.

     "LMA" means the Loan Market Association.

     "LOAN" means the loan made or to be made under this Agreement or the
     principal amount outstanding for the time being of that loan.

     "MAJORITY LENDERS" means:

     (a)  if there are no Loans then outstanding, a Lender or Lenders whose
          Commitments aggregate more than 66 2/3% of the Total Commitments (or,
          if the Total Commitments have been reduced to zero, aggregated more
          than 66 2/3% of the Total Commitments immediately prior to the
          reduction); or

     (b)  at any other time, a Lender or Lenders whose participations in the
          Loans then outstanding aggregate more than 66 2/3% of all the Loans
          then outstanding (or, if the Loans outstanding have been reduced to
          zero, aggregated more than 66 2/3% of the Loans outstanding
          immediately prior to the reduction).

     "MANDATORY COST" means the percentage rate per annum calculated by the
     Agent in accordance with Schedule 4 (Mandatory Cost formulae).

     "MARGIN" means:

     (a)  for the Loan drawn under the Tranche A Facility, point four per cent.
          (0.40%) per annum;

                                       -5-

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     (b)  for the Loan drawn under the Tranche B Facility, point six per cent.
          (0.60%) per annum; and

     (c)  for the Loan drawn under the Tranche C Facility, point eight five per
          cent. (0.85%) per annum.

     "MATERIAL ADVERSE EFFECT" means a material adverse effect on:

     (a)  the financial condition or credit rating of the Borrower;

     (b)  the ability of the Borrower to perform its obligations under the
          Finance Documents or the Relevant Documents; or

     (c)  the validity or enforceability of the Finance Documents or the
          Relevant Documents or the rights or remedies of any Finance Party
          under the Finance Documents or the Relevant Documents.

     "MONTH" means a period starting on one day in a calendar month and ending
     on the numerically corresponding day in the next calendar month, except
     that:

     (a)  if the numerically corresponding day is not a Business Day, that
          period shall end on the next Business Day in that calendar month in
          which that period is to end if there is one, or if there is not, on
          the immediately preceding Business Day;

     (b)  if there is no numerically corresponding day in the calendar month in
          which that period is to end, that period shall end on the last
          Business Day in that calendar month.

     The above rules will only apply to the last Month of any period.

     "ORIGINAL FINANCIAL STATEMENTS" means the Borrower's audited financial
     statements for its financial year ended 31 March 2005.

     "ORIGINAL LOAN" means all and any amounts outstanding pursuant to the First
     Facility Agreement and the Second Facility Agreement.

     "PARTICIPATING MEMBER STATE" means any member state of the European Union
     that adopts or has adopted the euro as its lawful currency in accordance
     with legislation of the European Union relating to Economic and Monetary
     Union.

     "PARTY" means a party to this Agreement.

     "QUOTATION DAY" means, in relation to any period for which an interest rate
     is to be determined, not longer than two (2) Business Days before the first
     day of that period unless market practice differs in the Relevant Interbank
     Market, in which case the Quotation Day will be determined by the Agent in
     accordance with market practice in the Relevant Interbank Market (and if
     quotations would normally be given by leading banks in the Relevant
     Interbank Market on more than one day, the Quotation Day will be the last
     of those days).

                                       -6-

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     "REFERENCE BANK" means ABN AMRO Bank N.V. and the principal London offices
     of Standard Chartered Bank and CALYON and/or such other bank or banks as
     may be appointed by the Agent in consultation with the Borrower.

     "RELEVANT DOCUMENTS" means mining leases in respect of Rampura Agucha,
     Rajpura Dariba and Zawar mines entered into by the Borrower as lessee.

     "RELEVANT INTERBANK MARKET" means the London interbank market.

     "REPEATING REPRESENTATIONS" means each of the representations set out in
     Clause 17 (Representations).

     "SCREEN RATE" means the British Bankers' Association Interest Settlement
     Rate for dollars for the relevant period, displayed on Reuters screen page
     LIBOR01. If the agreed page is replaced or service ceases to be available,
     the Agent may specify another page or service displaying the appropriate
     rate after consultation with the Borrower and the Lenders.

     "SECOND FACILITY AGREEMENT" means the facility agreement dated 25 June 2003
     between the Borrower, as borrower and ANZ Investment Bank, as agent,
     arranger and original lender, as amended from time to time.

     "SECURITY" means a mortgage, charge, pledge, hypothecation, assignment,
     deposit arrangement, lien or other security interest securing any
     obligation of any person or any other agreement or arrangement having a
     similar effect (including any conditional sale or other title retention
     agreement and any lease having substantially the same effect as the
     foregoing).

     "SELECTION NOTICE" means a notice substantially in the form set out in Part
     II of Schedule 3 (Requests) given in accordance with Clause 9 (Interest
     Periods).

     "SHAREHOLDERS AGREEMENT" means the shareholders agreement between Sterlite
     Opportunities and Ventures Limited and the Republic of India in relation to
     the shares in the Borrower.

     "SUBSIDIARY" means in relation to any company or corporation, a company or
     corporation:

     (a)  which is controlled, directly or indirectly, by the first mentioned
          company or corporation;

     (b)  more than half the issued share capital of which is beneficially
          owned, directly or indirectly by the first mentioned company or
          corporation; or

     (c)  which is a Subsidiary of another Subsidiary of the first mentioned
          company or corporation,

     and for this purpose, a company or corporation shall be treated as being
     controlled by another if that other company or corporation is able to
     direct its affairs and/or to control the composition of its board of
     directors or equivalent body.

                                       -7-

<PAGE>

     "TAX" means any tax, levy, impost, duty or other charge or withholding of a
     similar nature (including any penalty or interest payable in connection
     with any failure to pay or any delay in paying any of the same).

     "TERMINATION DATE" means, in respect of:

     (i)  Tranche A Facility, 24 November 2006;

     (ii) Tranche B Facility, 24 November 2008; and

     (iii) Tranche C Facility, 24 November 2010,

     or if any of the dates set out at (i) to (iii) inclusive above are not
     Business Days, the immediately preceding Business Day.

     "TOTAL COMMITMENTS" means the aggregate of the Commitments being one
     hundred and twenty-five million dollars ($125,000,000) as at the date of
     this Agreement.

     "TRANSFER CERTIFICATE" means a certificate substantially in the form set
     out in Schedule 5 (Form of Transfer Certificate) or any other form agreed
     between the Agent and the Borrower.

     "TRANCHE A COMMITMENT" means:

     (a)  in relation to an Original Lender, the amount set opposite its name
          under the heading "TRANCHE A COMMITMENT" in Part II of Schedule 1 (The
          Original Lenders) and the amount of any other Tranche A Commitment
          transferred to it under this Agreement; and

     (b)  in relation to any other Lender, the amount of any Tranche A
          Commitment transferred to it under this Agreement,

     to the extent not cancelled, reduced or transferred by it under this
     Agreement.

     "TRANCHE A FACILITY" means the term loan facility made available under this
     Agreement as described in Clause 2 (The Facility).

     "TRANCHE B COMMITMENT" means:

     (a)  in relation to the Original Lenders, the amount set opposite its name
          under the heading "TRANCHE B COMMITMENT" in Part II of Schedule 1 (The
          Original Lenders) and the amount of any other Tranche B Commitment
          transferred to it under this Agreement; and

     (b)  in relation to any other Lender, the amount of any Tranche B
          Commitment transferred to it under this Agreement,

     to the extent not cancelled, reduced or transferred by it under this
     Agreement.

     "TRANCHE B FACILITY" means the term loan facility made available under this
     Agreement as described in Clause 2 (The Facility).

     "TRANCHE C COMMITMENT" means:

                                       -8-

<PAGE>

     (a)  in relation to the Original Lenders, the amount set opposite its name
          under the heading "TRANCHE C COMMITMENT" in Part II of Schedule 1 (The
          Original Lenders) and the amount of any other Tranche C Commitment
          transferred to it under this Agreement; and

     (b)  in relation to any other Lender, the amount of any Tranche C
          Commitment transferred to it under this Agreement,

     to the extent not cancelled, reduced or transferred by it under this
     Agreement.

     "TRANCHE C FACILITY" means the term loan facility made available under this
     Agreement as described in Clause 2 (The Facility).

     "TRANSFER DATE" means, in relation to a transfer, the later of:

     (a)  the proposed Transfer Date specified in the Transfer Certificate; and

     (b)  the date on which the Agent executes the Transfer Certificate.

     "UNPAID SUM" means any sum due and payable but unpaid by the Borrower under
     the Finance Documents.

     "UTILISATION" means a utilisation of a Facility.

     "UTILISATION DATE" means the date of a Utilisation, being the date on which
     the Loan is to be made.

     "UTILISATION REQUEST" means a notice substantially in the form set out in
     Part I of Schedule 3 (Requests).

     "VAT" means value added tax as provided for in the Value Added Tax Act 1994
     and any other tax of a similar nature in any applicable jurisdiction.

     "VEDANTA GROUP" means Vedanta Resources Plc, and its Subsidiaries and
     Affiliates.

     "WORKING CAPITAL ASSETS" means the Borrower's current assets (excluding the
     movable properties), receivables, inventories and book debts, (excluding
     all investments) present or future.

     "WORKING CAPITAL FACILITY" means any bank facility extended or to be
     extended to the Borrower for the purpose of meeting the Borrower's working
     capital requirements in connection with the Core Business.

     "WORKING CAPITAL FACILITY LENDER" means any bank which provides a Working
     Capital Facility to the Borrower.

1.2  CONSTRUCTION

     (a)  Unless a contrary indication appears any reference in this Agreement
          to:

          (i)  The "AGENT", the "LEAD ARRANGERS", any "FINANCE PARTY", any
               "LENDER", the "BORROWER" or any "PARTY" shall be construed so as
               to include its successors in title, permitted assigns and
               permitted transferees;

                                       -9-

<PAGE>

          (ii) "ASSETS" includes present and future properties, revenues and
               rights of every description;

          (iii) a "FINANCE DOCUMENT" or any other agreement or instrument is a
               reference to that Finance Document or other agreement or
               instrument as amended, restated, supplemented or novated;

          (iv) "INDEBTEDNESS" includes any obligation (whether incurred as
               principal or as surety) for the payment or repayment of money,
               whether present or future, actual or contingent;

          (v)  a "PERSON" includes any person, firm, company, corporation,
               government, state or agency of a state or any association, trust
               or partnership (whether or not having separate legal personality)
               of two or more of the foregoing;

          (vi) a "REGULATION" includes any regulation, rule, official directive,
               request or guideline (whether or not having the force of law) of
               any governmental, intergovernmental or supranational body,
               agency, department or regulatory, self-regulatory or other
               authority or organisation;

          (vii) a provision of law is a reference to that provision as amended
               or re-enacted;

          (viii) a time of day is a reference to London time; and

          (ix) in the event of any disagreement or dispute between the Agent or
               Majority Lenders and the Borrower regarding the materiality of
               any matter including of any event, occurrence, circumstance,
               change, fact, information, document, authorisation, proceeding,
               act, omission, claims, breach, default or otherwise, the opinion
               of the Agent or Majority Lenders as to the materiality of any of
               the foregoing shall be final and binding on the Borrower.

     (b)  Section, Clause and Schedule headings are for ease of reference only.

     (c)  Unless a contrary indication appears, a term used in any other Finance
          Document or in any notice given under or in connection with any
          Finance Document has the same meaning in that Finance Document or
          notice as in this Agreement.

     (d)  A Default (other than an Event of Default) is "CONTINUING" if it has
          not been remedied or waived and an Event of Default is "CONTINUING" if
          it has not been waived.

1.3  CURRENCY SYMBOLS AND DEFINITIONS

     "$" and "DOLLARS" denote lawful currency of the United States of America.

1.4  THIRD PARTY RIGHTS

     (a)  Unless expressly provided to the contrary in a Finance Document, a
          person who is not a Party has no right under the Contracts (Rights of
          Third Parties) Act

                                      -10-

<PAGE>

          1999 (the "THIRD PARTIES ACT") to enforce or to enjoy the benefit of
          any term of this Agreement.

     (b)  Notwithstanding any term of any Finance Document, the consent of any
          person who is not a Party is not required to rescind or vary this
          Agreement at any time.

                                      -11-

<PAGE>

                                    SECTION 2
                                  THE FACILITY

2.   THE FACILITY

2.1  THE FACILITY

     Subject to the terms of this Agreement, the Lenders shall, throughout the
     Availability Period, make available to the Borrower:

     (a)  a dollar term loan Tranche A Facility in the amount of the aggregate
          of the Tranche A Commitments;

     (b)  a dollar term loan Tranche B Facility in the amount of the aggregate
          of the Tranche B Commitments; and

     (c)  a dollar term loan Tranche C Facility in the amount of the aggregate
          of the Tranche C Commitments,

     in aggregate being an amount equal to the Total Commitments.

2.2  FINANCE PARTIES' RIGHTS AND OBLIGATIONS

     (a)  The obligations of each Finance Party under the Finance Documents are
          several. Failure by a Finance Party to perform its obligations under
          the Finance Documents does not affect the obligations of any other
          Party under the Finance Documents. No Finance Party is responsible for
          the obligations of any other Finance Party under the Finance
          Documents.

     (b)  The rights of each Finance Party under or in connection with the
          Finance Documents are separate and independent rights and any debt
          arising under the Finance Documents to a Finance Party from the
          Borrower shall be a separate and independent debt.

     (c)  A Finance Party may, except as otherwise stated in the Finance
          Documents, separately enforce its rights under the Finance Documents.

3.   PURPOSE

3.1  PURPOSE

     The Borrower shall apply all amounts borrowed by it under this Agreement to
     refinance the principal amount of the Original Loan.

3.2  MONITORING

     No Finance Party is bound to monitor or verify the application of any
     amount borrowed pursuant to this Agreement.

4.   CONDITIONS OF UTILISATION

4.1  INITIAL CONDITIONS PRECEDENT

     The Borrower may not deliver the Utilisation Request under this Agreement
     unless the Agent has received all of the documents and other evidence
     listed in Schedule 2 (Conditions precedent) in form and substance
     satisfactory to the Agent. The Agent shall notify the Borrower and the
     Lenders promptly upon being so satisfied.

                                      -12-

<PAGE>

4.2  FURTHER CONDITIONS PRECEDENT

     The Lenders will only be obliged to comply with Clause 5.4 (Lenders'
     participation) of this Agreement if on the date of the Utilisation Request
     and on the proposed Utilisation Date:

     (a)  no Default is continuing or would result from the proposed Loan;

     (b)  the Repeating Representations to be made by the Borrower are true in
          all material respects; and

     (c)  no material adverse change in the business, condition (financial or
          otherwise) operations, performance, assets and prospects of the
          Borrower or any of its Affiliates, taken individually or as a whole
          since the date of the audited consolidated financial statements of the
          Borrower for the period ending 31 March 2005, or in the Republic of
          India generally or in the domestic Indian market for loans and debt
          security.

                                      -13-

<PAGE>

                                    SECTION 3
                                   UTILISATION

5.   UTILISATION

5.1  DELIVERY OF A UTILISATION REQUEST

     (a)  The Borrower may utilise the Facilities by delivery to the Agent of a
          duly completed Utilisation Request not later than [3:00 p.m.]
          (Singapore time), five (5) Business Days before the proposed
          Utilisation Date.

     (b)  The Borrower shall be entitled (subject to the terms of this
          Agreement) to deliver up a single Utilisation Request.

5.2  COMPLETION OF A UTILISATION REQUEST

     The Utilisation Request is irrevocable and will not be regarded as having
     been duly completed unless:

          (i)  the proposed Utilisation Date is a Business Day within the
               Availability Period;

          (ii) the currency and amount of the Utilisation comply with Clause 5.3
               (Amount); and

          (iii) the proposed Interest Period complies with Clause 9 (Interest
               Periods).

5.3  AMOUNT

     (a)  The currency specified in a Utilisation Request must be dollars.

     (b)  The amount of the proposed Loan must be an amount which is equivalent
          to but not more than the Available Facility.

5.4  LENDERS' PARTICIPATION

     The Agent shall notify each Lender of the amount of its participation in
     that Loan, in each case by 3:00 p.m. (Singapore time), three (3) Business
     Days before the proposed Utilisation Date.

                                      -14-

<PAGE>

                                    SECTION 4
                     REPAYMENT, PREPAYMENT AND CANCELLATION

6.   REPAYMENT

6.1  REPAYMENT OF LOAN

     The Borrower shall repay the Loan in respect of the Tranche A Facility, the
     Tranche B Facility and the Tranche C Facility on the relevant Termination
     Date.

7.   PREPAYMENT AND CANCELLATION

7.1  ILLEGALITY

     If, at any time, it is or will become unlawful in any applicable
     jurisdiction for a Lender to perform any of its obligations as contemplated
     by this Agreement or to fund or maintain its participation in the Loan:

     (a)  that Lender shall promptly notify the Agent upon becoming aware of
          that event;

     (b)  upon the Agent notifying the Borrower, the Commitment of that Lender
          will be immediately cancelled; and

     (c)  the Borrower shall repay that Lender's participation in the Loan made
          to the Borrower on the last day of the Interest Period occurring after
          the Agent has notified the Borrower or, if earlier, the date specified
          by the Lender in the notice delivered to the Agent.

7.2  AUTOMATIC CANCELLATION

     At the close of the last Business Day of the Availability Period, the
     undrawn Commitment of each Lender at that time shall automatically be
     cancelled.

7.3  VOLUNTARY CANCELLATION

     The Borrower may, if it gives the Agent not less than seven (7) Business
     Days' (or such shorter period as the Majority Lenders may agree) prior
     written notice, cancel the whole or any part (but, if in part, in a minimum
     amount of one million dollars ($1,000,000)) of the Available Facilities
     (and in the proportions which the commitment under each Facility bears to
     the Total Commitments). Any cancellation under this Clause 7.3 shall reduce
     the Available Commitments of the Lenders by an amount which bears the same
     proportion to the total amount being cancelled as its Available Commitment
     (at the time) bears to the Total Commitments (at that time).

7.4  VOLUNTARY PREPAYMENT OF LOANS

     (a)  The Borrower may, if it gives the Agent not less than twenty (20)
          Business Days' (or such shorter period as the Majority Lenders may
          agree) prior written notice of an intended prepayment, and if all
          necessary regulatory approvals are obtained (if any), prepay the whole
          or any part of the Loan (but, if in part, being an amount that reduces
          the amount of the Loan by a minimum amount of ten million dollars
          ($10,000,000)) on the last day of an Interest Period.

     (b)  Any prepayment under this Agreement will be applied across all of the
          Facilities amounts outstanding, in the proportions which the relevant
          Facility amount outstanding bears to the aggregate amount outstanding.

                                      -15-

<PAGE>

     (c)  The Loan may only be prepaid after the last day of the Availability
          Period (or, if earlier, the day on which the Available Facility is
          zero).

7.5  RIGHT OF REPAYMENT AND CANCELLATION IN RELATION TO A SINGLE LENDER

     (a)  If:

          (i)  any Lender claims indemnification from the Borrower under Clause
               12.3 (Tax indemnity) or Clause 13 (Increased costs) of this
               Agreement; or

          (ii) any Lender notifies the Agent of its Additional Cost Rate under
               paragraph 3 of Schedule 4 (Mandatory Cost formulae),

          the Borrower may, whilst (in the case of paragraph (i) above) the
          circumstance giving rise to the requirement or indemnification
          continues or (in the case of paragraph (ii) above) that Additional
          Cost Rate is greater than zero, give the Agent notice of cancellation
          of the Commitment of that Lender and its intention to procure the
          repayment of that Lender's participation in the Loan.

     (b)  On receipt of a notice referred to in paragraph (a) above, the
          Commitment of that Lender shall immediately be reduced to zero.

     (c)  On the last day of each Interest Period which ends after the Borrower
          has given notice under paragraph (a) above (or, if earlier, the date
          specified by the Borrower in that notice), the Borrower shall repay
          that Lender's participation in the Loan.

7.6  RESTRICTIONS

     (a)  Any notice of cancellation or prepayment given by any Party under this
          Clause 7 shall be irrevocable and shall specify the date or dates upon
          which the relevant cancellation or prepayment is to be made and the
          amount of that cancellation or prepayment.

     (b)  Any prepayment under this Agreement shall be made together with
          accrued interest on the amount prepaid and, subject to any Break
          Costs, without premium or penalty.

     (c)  The Borrower may not reborrow any part of a Facility which is prepaid.

     (d)  The Borrower shall not repay or prepay all or any part of the Loan or
          cancel all or any part of the Commitments except at the times and in
          the manner expressly provided for in this Agreement.

     (e)  No amount of the Total Commitments cancelled under this Agreement may
          be subsequently reinstated.

     (f)  If the Agent receives a notice under this Clause 7 it shall promptly
          forward a copy of that notice to either the Borrower or the affected
          Lender, as appropriate.

                                      -16-
<PAGE>

                                    SECTION 5
                                INTEREST PERIODS

8.   INTEREST

8.1  INTEREST RATE

     The rate of interest on the Loan for each Interest Period is the percentage
     rate per annum which is the aggregate of the applicable:

     (a)  Margin;

     (b)  LIBOR; and

     (c)  Additional Cost Rate, if any.

8.2  CALCULATION OF INTEREST

     Interest shall accrue from day to day at the rate determined under Clause
     8.1 (Interest Rate) and Clause 8.4 (Default Interest) on the basis of
     actual days elapsed and a 360 day year.

8.3  PAYMENT OF INTEREST

     On the last day of each Interest Period the Borrower shall pay accrued
     interest on the Loan to which that Interest Period relates.

8.4  DEFAULT INTEREST

     (a)  If the Borrower fails to pay any amount payable by it under a Finance
          Document on its due date, interest shall accrue on the overdue amount
          from the due date up to the date of actual payment (both before and
          after judgment) at a rate which, subject to paragraph (b) below is two
          per cent. (2%) higher than the rate which would have been payable if
          the overdue amount had, during the period of non-payment, constituted
          the Loan in the currency of the overdue amount for successive Interest
          Periods, each of a duration selected by the Agent (acting reasonably).
          Any interest accruing under this Clause 8.4 shall be payable by the
          Borrower immediately on demand by the Agent.

     (b)  If any overdue amount consists of all or part of the Loan which became
          due on a day which was not the last day of an Interest Period:

          (i)  the first Interest Period for that overdue amount shall have a
               duration equal to the unexpired portion of the current Interest
               Period; and

          (ii) the rate of interest applying to the overdue amount during that
               first Interest Period shall be two per cent. (2%) higher than the
               rate which would have applied if the overdue amount had not
               become due.

     (c)  Default interest (if unpaid) arising on an overdue amount will be
          compounded with the overdue amount at the end of each Interest Period
          applicable to that overdue amount but will remain immediately due and
          payable.

                                      -17-

<PAGE>

8.5  NOTIFICATION OF RATES OF INTEREST

     The Agent shall promptly notify the Lenders and the Borrower from time to
     time of the determination of a rate of interest under this Agreement. The
     certificate of the Agent as to the rate and the amount of interest payable
     under this Agreement shall, in the absence of manifest error, be conclusive
     and binding on all Parties.

9.   INTEREST PERIODS

9.1  SELECTION OF INTEREST PERIODS

     (a)  The Borrower may select an Interest Period for the Loan in the
          Utilisation Request or (if the Loan has already been borrowed) in a
          Selection Notice.

     (b)  Each Selection Notice for the Loan is irrevocable and must be
          delivered to the Agent by the Borrower not later than 9:30 a.m., five
          (5) Business Days before the proposed Utilisation Date.

     (c)  If the Borrower fails to deliver a Selection Notice to the Agent in
          accordance with paragraph (b) above, the relevant Interest Period will
          be three (3) months.

     (d)  Subject to the remaining provisions of this Clause 9.1, the Borrower
          may select an Interest Period of one (1), three (3) or six (6) Months
          or any other period agreed between the Borrower and the Agent (acting
          on the instructions of all the Lenders).

     (e)  An Interest Period for the Loan shall not extend beyond the relevant
          Termination Date.

     (f)  Each Interest Period for the Loan shall in respect of the first
          Interest Period, start on the Utilisation Date and on the last day of
          its preceding Interest Period for all subsequent Interest Period.

9.2  NON-BUSINESS DAYS

     If an Interest Period would otherwise end on a day which is not a Business
     Day, that Interest Period will instead end on the next Business Day in that
     calendar month (if there is one) or the preceding Business Day (if there is
     not) or in the case of the final Interest Period for a Facility, the
     relevant Termination Date.

10.  CHANGES TO THE CALCULATION OF INTEREST

10.1 ABSENCE OF QUOTATIONS

     Subject to Clause 10.2 (Market disruption), if LIBOR is to be determined by
     reference to the Reference Banks but a Reference Bank does not supply a
     quotation by 11:00 a.m. on the Quotation Day, the applicable LIBOR shall be
     determined on the basis of the quotations of the remaining Reference Banks.

10.2 MARKET DISRUPTION

     (a)  If a Market Disruption Event occurs in relation to the Loan for any
          Interest Period, then the rate of interest on each Lender's share of
          the Loan for the Interest Period shall be the rate per annum which is
          the sum of:

          (i)  the Margin;

                                      -18-

<PAGE>

          (ii) the rate notified to the Agent by that Lender as soon as
               practicable and in any event before interest is due to be paid in
               respect of that Interest Period, to be that which expresses as a
               percentage rate per annum the cost to that Lender of funding its
               participation in the Loan from whatever source it may reasonably
               select; and

          (iii) the Additional Cost Rate, if any, applicable to that Lender's
               participation in the Loan.

     (b)  In this Agreement "MARKET DISRUPTION EVENT" means:

          (i)  at or about noon on the Quotation Day for the relevant Interest
               Period the Screen Rate is not available and none or only one of
               the Reference Banks supplies a rate to the Agent to determine
               LIBOR for dollars and the relevant Interest Period; or

          (ii) before close of business in London on the Quotation Day for the
               relevant Interest Period, the Agent receives notifications from a
               Lender or Lenders (whose participations in a Loan exceed
               thirty-five per cent. (35%) of the Loan) that the cost to it of
               obtaining matching deposits in the Relevant Interbank Market
               would be in excess of LIBOR.

10.3 ALTERNATIVE BASIS OF INTEREST OR FUNDING

     (a)  If a Market Disruption Event occurs, the Agent and the Borrower shall
          (in good faith) enter into negotiations (for a period of not more than
          thirty (30) days) with a view to agreeing a substitute basis for
          determining the rate of interest.

     (b)  Any alternative basis agreed pursuant to paragraph (a) above shall,
          with the prior consent of all the Lenders and the Borrower, take
          effect in accordance with its terms and be binding on all Parties.

10.4 BREAK COSTS

     (a)  The Borrower shall, within seven (7) Business Days of demand by a
          Finance Party, pay to that Finance Party its Break Costs attributable
          to all or any part of the Loan or Unpaid Sum being paid by the
          Borrower on a day other than the last day of an Interest Period for
          the Loan or Unpaid Sum.

     (b)  Each Lender shall, as soon as reasonably practicable after a demand by
          the Agent, provide a certificate confirming the amount of its Break
          Costs for any Interest Period in which they accrue.

11.  FEES

11.1 ARRANGEMENT FEE

     The Borrower shall pay to the Lead Arrangers the arrangement fee in the
     amount and at the times agreed in the Arrangement Fee Letter.

11.2 AGENCY FEE

     The Borrower shall pay to the Agent the agency fee in the amount and at the
     times agreed in the Agency Fee Letter.

                                      -19-

<PAGE>

                                    SECTION 6
                         ADDITIONAL PAYMENT OBLIGATIONS

12.  TAX GROSS UP AND INDEMNITIES

12.1 DEFINITIONS

     (a)  In this Agreement:

          "PROTECTED PARTY" means a Finance Party which is or will be subject to
          any liability, or required to make any payment, for or on account of
          Tax in relation to a sum received or receivable (or any sum deemed for
          the purposes of Tax to be received or receivable) under a Finance
          Document.

          "TAX DEDUCTION" means a deduction or withholding for or on account of
          Tax from a payment under a Finance Document.

          "TAX PAYMENT" means either the increase in a payment made by the
          Borrower to a Finance Party under Clause 12.2 (Tax gross-up) or a
          payment under Clause 12.3 (Tax indemnity).

     (b)  Unless a contrary indication appears, in this Clause 12 a reference to
          "determines" or "determined" means a determination made in the
          absolute discretion of the person making the determination.

12.2 TAX GROSS-UP

     (a)  The Borrower shall make all payments to be made by it to any Finance
          Party without any Tax Deduction, unless a Tax Deduction is required by
          law.

     (b)  The Borrower shall promptly upon becoming aware that it must make a
          Tax Deduction (or that there is any change in the rate or the basis of
          a Tax Deduction) notify the Agent accordingly. Similarly, a Lender
          shall notify the Agent on becoming so aware in respect of a payment
          payable to that Lender. If the Agent receives such notification from a
          Lender it shall notify the Borrower.

     (c)  If a Tax Deduction is required by law or regulation to be made by the
          Borrower, the amount of the payment due from the Borrower shall be
          increased to an amount which (after making any Tax Deduction) leaves
          an amount equal to the payment which would have been due if no Tax
          Deduction had been required.

     (d)  If the Borrower is required to make a Tax Deduction, it shall make
          that Tax Deduction and any payment required in connection with that
          Tax Deduction within the time allowed and in the minimum amount
          required by law.

     (e)  Within thirty (30) days of making either a Tax Deduction or any
          payment required in connection with that Tax Deduction, the Borrower
          shall deliver to the Agent for the Finance Party entitled to the
          payment evidence reasonably satisfactory to that Finance Party that
          the Tax Deduction has been made or (as applicable) any appropriate
          payment paid to the relevant taxing authority.

                                      -20-

<PAGE>

12.3 TAX INDEMNITY

     (a)  The Borrower shall (within seven (7) Business Days of demand by the
          Agent) pay to a Protected Party an amount equal to the loss, liability
          or cost which that Protected Party determines will be or has been
          (directly or indirectly) suffered for or on account of Tax by that
          Protected Party in respect of a Finance Document.

     (b)  Paragraph (a) above shall not apply:

          (i)  with respect to any Tax assessed on a Finance Party:

               (A)  under the law of the jurisdiction in which that Finance
                    Party is incorporated or, if different, the jurisdiction (or
                    jurisdictions) in which that Finance Party is treated as
                    resident for tax purposes; or

               (B)  under the law of the jurisdiction in which that Finance
                    Party's Facility Office is located in respect of amounts
                    received or receivable in that jurisdiction,

               if that Tax is imposed on or calculated by reference to the net
               income received or receivable (but not any sum deemed to be
               received or receivable) by that Finance Party; or

          (ii) to the extent a loss, liability or cost is compensated for by an
               increased payment under Clause 12.2 (Tax gross-up).

     (c)  A Protected Party making, or intending to make a claim under paragraph
          (a) above shall promptly notify the Agent of the event which will
          give, or has given, rise to the claim, following which the Agent shall
          notify the Borrower.

     (d)  A Protected Party shall, on receiving a payment from the Borrower
          under this Clause 12.3, notify the Agent.

12.4 STAMP TAXES

     The Borrower shall pay and, within seven (7) Business Days of demand,
     indemnify each Finance Party against any cost, loss or liability that
     Finance Party incurs in relation to all stamp duty, registration and other
     similar Taxes payable in respect of any Finance Document.

12.5 VALUE ADDED TAX

     (a)  All consideration expressed to be payable under a Finance Document by
          any Party to a Finance Party shall be deemed to be exclusive of any
          VAT. If VAT is chargeable on any supply made by any Finance Party to
          any Party in connection with a Finance Document, that Party shall pay
          to the Finance Party (in addition to and at the same time as paying
          the consideration) an amount equal to the amount of the VAT.

     (b)  Where a Finance Document requires any Party to reimburse a Finance
          Party for any costs or expenses, that Party shall also at the same
          time pay and indemnify the Finance Party against all VAT incurred by
          the Finance Party in respect of

                                      -21-

<PAGE>

          the costs or expenses to the extent that the Finance Party reasonably
          determines that it is not entitled to credit or repayment of the VAT.

13.  INCREASED COSTS

13.1 INCREASED COSTS

     (a)  Subject to Clause 13.3 (Exceptions) the Borrower shall, within seven
          (7) Business Days of a demand by the Agent, pay for the account of a
          Finance Party the amount of any Increased Costs incurred by that
          Finance Party or any of its Affiliates as a result of (i) the
          introduction of or any change in (or in the interpretation,
          administration or application of) any law or regulation or (ii)
          compliance with any law or regulation made after the date of this
          Agreement.

     (b)  In this Agreement "INCREASED COSTS" means:

          (i)  a reduction in the rate of return from a Facility or on a Finance
               Party's (or its Affiliate's) overall capital;

          (ii) an additional or increased cost; or

          (iii) a reduction of any amount due and payable under any Finance
               Document,

          which is incurred or suffered by a Finance Party or any of its
          Affiliates to the extent that it is attributable to that Finance Party
          having entered into its Commitment or funding or performing its
          obligations under any Finance Document.

13.2 INCREASED COST CLAIMS

     (a)  A Finance Party intending to make a claim pursuant to Clause 13.1
          (Increased costs) shall notify the Agent of the event giving rise to
          the claim, following which the Agent shall promptly notify the
          Borrower.

     (b)  Each Finance Party shall, as soon as practicable after a demand by the
          Agent, provide a certificate confirming the amount of its Increased
          Costs.

13.3 EXCEPTIONS

     (a)  Clause 13.1 (Increased costs) does not apply to the extent any
          Increased Cost is:

          (i)  attributable to a Tax Deduction required by law to be made by the
               Borrower;

          (ii) compensated for by Clause 12.3 (Tax indemnity) (or would have
               been compensated for under Clause 12.3 (Tax indemnity) but was
               not so compensated solely because any of the exclusions in
               paragraph (b) of Clause 12.3 (Tax indemnity) applied);

          (iii) compensated for by the payment of the Mandatory Cost; or

          (iv) attributable to the wilful breach by the relevant Finance Party
               or its Affiliates of any law or regulation.

                                      -22-

<PAGE>

     (b)  In this Clause 13.3, a reference to a "TAX DEDUCTION" has the same
          meaning given to the term in Clause 12.1 (Definitions).

14.  OTHER INDEMNITIES

14.1 CURRENCY INDEMNITY

     (a)  If any sum due from the Borrower under the Finance Documents (a
          "SUM"), or any order, judgment or award given or made in relation to a
          Sum, has to be converted from the currency (the "FIRST CURRENCY") in
          which that Sum is payable into another currency (the "SECOND
          CURRENCY") for the purpose of:

          (i)  making or filing a claim or proof against the Borrower;

          (ii) obtaining or enforcing an order, judgment or award in relation to
               any litigation or arbitration proceedings,

          the Borrower shall as an independent obligation, within seven (7)
          Business Days of demand, indemnify each Finance Party to whom that Sum
          is due against any cost, loss or liability arising out of or as a
          result of the conversion including any discrepancy between (A) the
          rate of exchange used to convert that Sum from the First Currency into
          the Second Currency and (B) the rate or rates of exchange available to
          that person at the time of its receipt of that Sum.

     (b)  The Borrower waives any right it may have in any jurisdiction to pay
          any amount under the Finance Documents in a currency or currency unit
          other than that in which it is expressed to be payable.

14.2 OTHER INDEMNITIES

     The Borrower shall, within seven (7) Business Days of demand, indemnify
     each Finance Party against any cost and expense (including legal fees),
     loss or liability incurred by that Finance Party as a result of:

     (a)  the occurrence of any Event of Default;

     (b)  a failure by the Borrower to pay any amount due under a Finance
          Document on its due date, including without limitation, any cost, loss
          or liability arising as a result of Clause 26 (Sharing among the
          Finance Parties);

     (c)  funding, or making arrangements to fund, its participation in the Loan
          requested by the Borrower in the Utilisation Request but not made by
          reason of the operation of any one or more of the provisions of this
          Agreement (other than by reason of default or negligence by that
          Finance Party alone); or

     (d)  a Loan (or part of a Loan) not being prepaid in accordance with a
          notice of prepayment given by the Borrower.

                                      -23-

<PAGE>

14.3 INDEMNITY TO THE AGENT

     The Borrower shall promptly indemnify the Agent against any cost and
     expense (including legal fees), loss or liability incurred by the Agent
     (acting reasonably) as a result of:

     (a)  investigating any event which it reasonably believes is a Default; or

     (b)  acting or relying on any notice, request or instruction which it
          reasonably believes to be genuine, correct and appropriately
          authorised.

15.  MITIGATION BY THE LENDERS

15.1 MITIGATION

     (a)  Each Finance Party shall, in consultation with the Borrower, take all
          reasonable steps to mitigate any circumstances which arise and which
          would result in any amount becoming payable under or pursuant to, or
          cancelled pursuant to, any of Clause 7.1 (Illegality), Clause 13
          (Increased costs) or paragraph 3 of Schedule 4 (Mandatory Cost
          formulae) including (but not limited to) transferring its rights and
          obligations under the Finance Documents to another Affiliate or
          Facility Office.

     (b)  Paragraph (a) above does not in any way limit the obligations of the
          Borrower under the Finance Documents.

15.2 LIMITATION OF LIABILITY

     (a)  The Borrower shall indemnify each Finance Party for all costs and
          expenses (including legal fees) reasonably incurred by that Finance
          Party as a result of steps taken by it under Clause 15.1 (Mitigation).

     (b)  A Finance Party is not obliged to take any steps under Clause 15.1
          (Mitigation) if, in the opinion of that Finance Party (acting
          reasonably), to do so might be prejudicial to it.

16.  COSTS AND EXPENSES

16.1 TRANSACTION EXPENSES

     Save as otherwise agreed, the Borrower shall promptly on demand pay the
     Agent and the Lead Arrangers the amount of all costs and expenses
     (including legal fees and fees of other external advisors) reasonably
     incurred by any of them in connection with the negotiation, preparation,
     printing, execution and syndication of:

     (a)  this Agreement and any other documents referred to in this Agreement
          up to a maximum amount of fifty thousand dollars ($50,000); and

     (b)  any other Finance Documents executed after the date of this Agreement.

16.2 AMENDMENT COSTS

     If (a) an amendment, waiver or consent or required in relation to any
     Finance Document or (b) an amendment is required pursuant to Clause 27.9
     (Change of currency), the Borrower shall, within seven (7) Business Days of
     demand, reimburse the Agent for the

                                      -24-

<PAGE>

     amount of all costs and expenses (including legal fees) reasonably incurred
     by the Agent in responding to, evaluating, negotiating or complying with
     that request or requirement.

16.3 ENFORCEMENT COSTS

     The Borrower shall, within seven (7) Business Days of demand, pay to each
     Finance Party the amount of all costs and expenses (including legal fees
     and fees of other external advisors) incurred by that Finance Party in
     connection with the enforcement of, or the preservation of any rights
     under, any Finance Document.

                                      -25-

<PAGE>

                                    SECTION 7
               REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

17.  REPRESENTATIONS

     The Borrower makes the representations and warranties set out in this
     Clause 17 to each Finance Party on the date of this Agreement.

17.1 STATUS

     (a)  It is a corporation, duly incorporated and validly existing under the
          law of its jurisdiction of incorporation.

     (b)  It and each of its Subsidiaries has the power to own its assets and
          carry on its business as it is being conducted.

17.2 BINDING OBLIGATIONS

     The obligations expressed to be assumed by it in each Finance Document are,
     subject to any general principles of law as at the date of this Agreement
     limiting the enforcement of its obligations, legal, valid, binding and
     enforceable obligations.

17.3 NON-CONFLICT WITH OTHER OBLIGATIONS

     The entry into and performance by it of, and the transactions contemplated
     by, the Finance Documents do not and will not conflict with:

     (a)  any law or regulation applicable to it;

     (b)  its or any of its Subsidiaries' constitutional documents ; or

     (c)  any agreement or instrument binding upon it or any of its Subsidiaries
          or any of its or any of its Subsidiaries' assets.

17.4 POWER AND AUTHORITY

     It has the power to enter into, perform and deliver, and has taken all
     necessary action to authorise its entry into, performance and delivery of,
     the Finance Documents to which it is a party and the transactions
     contemplated by those Finance Documents.

17.5 VALIDITY AND ADMISSIBILITY IN EVIDENCE

     All Authorisations required or desirable:

     (a)  to enable it lawfully to enter into, exercise its rights and comply
          with its obligations in the Finance Documents to which it is a party;
          and

     (b)  to make the Finance Documents to which it is a party admissible in
          evidence in its jurisdiction of incorporation,

     have been obtained or effected and are in full force and effect.

17.6 GOVERNING LAW AND ENFORCEMENT

     (a)  The choice of English law as the governing law of the Finance
          Documents will be recognised and enforced in its jurisdiction of
          incorporation.

                                      -26-

<PAGE>

     (b)  Any judgment obtained in England in relation to a Finance Document
          will be recognised and enforced in its jurisdiction of incorporation.

17.7 DEDUCTION OF TAX

     It is not required under the law of its jurisdiction of incorporation to
     make any deduction for or on account of Tax from any payment it may make
     under any Finance Document (other than withholding Tax which must be
     grossed-up in accordance with Clause 12 (Tax Gross up and Indemnities)).

17.8 REGISTRATION AND STAMP TAXES

     All registrations, recordings, billings or notarisations of any of the
     Finance Documents and all payments of any duty or stamp, registration or
     similar tax on the Finance Documents and all other action which is
     necessary to ensure the validity, enforceability or priority of the Finance
     Documents (or the transactions contemplated by the Finance Documents) in
     the Republic of India have been or will be duly effected, taken or made.

17.9 NO DEFAULT

     (a)  No Default is continuing or might reasonably be expected to result
          from the making of any Utilisation.

     (b)  No other event or circumstance is outstanding which constitutes a
          default under any other agreement or instrument which is binding on it
          or any of its Subsidiaries or to which its (or any of its
          Subsidiaries') assets are subject which might have a Material Adverse
          Effect.

17.10 NEGATIVE PLEDGE

     No event of circumstances exist which might result in non-compliance with
     Clause 20.3 (Negative Pledge).

17.11 NO MISLEADING INFORMATION

     (a)  Any factual information provided by any member of the Group for the
          purposes of the Information Memorandum was true and accurate in all
          material respects as at the date it was provided or as at the date (if
          any) at which it is stated.

     (b)  Nothing has occurred or been omitted from the Information Memorandum
          and no information has been given or withheld that results in the
          information contained in the Information Memorandum being untrue or
          misleading in any material respect.

     (c)  All written information (other than the Information Memorandum)
          supplied by any member of the Group is true and accurate in all
          material respects as at the date it was given and is not misleading in
          any respect.

17.12 FINANCIAL STATEMENTS

     (a)  Its Original Financial Statements were prepared in accordance with
          GAAP consistently applied.

     (b)  Its Original Financial Statements truly and fairly represent its
          financial condition and operations during the relevant financial year.

                                      -27-

<PAGE>

     (c)  There has been no material adverse change in its business or financial
          condition (or the business or consolidated financial condition of the
          Group) since the date of the Original Financial Statements.

17.13 PARI PASSU

     The claims of any of the Finance Parties against it under the Finance
     Documents to which it is a party rank or will rank at least pari passu with
     the claims of all its other present and future unsecured creditors save
     those whose claims are preferred solely by any bankruptcy, insolvency,
     liquidation or other similar laws of general application.

17.14 NO PROCEEDINGS PENDING OR THREATENED

     No litigation, arbitration or administrative proceedings of or before any
     court, arbitral body or agency which, if adversely determined, might
     reasonably be expected to have a Material Adverse Effect have (to the best
     of its knowledge and belief) been started or threatened against it or any
     of its Subsidiaries.

17.15 TAXATION

     It has duly and punctually paid and discharged all Taxes imposed upon it or
     its assets within the time period allowed without incurring penalties (save
     to the extent that (i) payment is being contested in good faith, (ii) it
     has maintained adequate reserves for those Taxes and (iii) payment can be
     lawfully withheld).

17.16 NO IMMUNITY

     In any proceedings taken in its jurisdiction of incorporation in relation
     to this Agreement, it will not be entitled to claim for itself or any of
     its assets immunity from suit, execution, attachment or other legal
     process.

17.17 PRIVATE AND COMMERCIAL ACTS

     Its execution of the Finance Documents constitutes, and its exercise of its
     rights and performance of its obligations hereunder will constitute,
     private and commercial acts done and performed for private and commercial
     purposes.

17.18 REQUIRED SHAREHOLDING

     As at the date of this Agreement members of the Vedanta Group holds not
     less than fifty-one per cent. (51%) of the issued share capital of the
     Borrower.

17.19 NO MATERIAL ADVERSE EFFECT

     No event of circumstances exists which might have a Material Adverse
     Effect.

17.20 CONTROL

     The Vedanta Group Controls the Borrower.

17.21 RELEVANT DOCUMENTS

     Each Relevant Document is in full force and effect, and has not been
     terminated or revoked, and no party is in default thereunder.

17.22 TITLE

     The Borrower (or the Group) has good and marketable title to the Core
     Business free and clear of all Security except the Security permitted by
     the Finance Documents.

                                      -28-

<PAGE>

17.23 REPETITION

     The Repeating Representations are deemed to be made by the Borrower (by
     reference to the facts and circumstances then existing) on the date of the
     Utilisation Request, the Utilisation Date and the first day of each
     Interest Period.

18.  INFORMATION UNDERTAKINGS

     The undertakings in this Clause 18 remain in force from the date of this
     Agreement for so long as any amount is outstanding under the Finance
     Documents or any Commitment is in force.

18.1 FINANCIAL STATEMENTS

     The Borrower shall supply to the Agent in sufficient copies for all the
     Lenders:

     (a)  as soon as the same become available, but in any event within one
          hundred and eighty (180) days after the end of each of its financial
          years (being 31 March) its audited financial statements for that
          financial year; and

     (b)  as soon as the same become available, but in any event within ninety
          (90) days after the end of each half of each of its financial years
          (being 30 September) its financial statements for that financial half
          year together with management reports, if any.

18.2 COMPLIANCE CERTIFICATE

     (a)  The Borrower shall supply to the Agent, with each set of financial
          statements delivered pursuant to paragraph (a) or (b) of Clause 18.1
          (Financial statements), a Compliance Certificate setting out (in
          reasonable detail) computations as to compliance with Clause 19
          (Financial covenants) as at the date as at which those financial
          statements were drawn up.

     (b)  Each Compliance Certificate shall be signed by two (2) Authorised
          Signatories of the Borrower and, if required to be delivered with the
          financial statements delivered pursuant to paragraph (a) of Clause
          18.1 (Financial statements) shall be reported on by the Borrower's
          auditors.

18.3 REQUIREMENTS AS TO FINANCIAL STATEMENTS

     (a)  Each set of financial statements delivered by the Borrower pursuant to
          Clause 18.1 (Financial statements) shall be certified by a director of
          the relevant company as fairly representing its financial condition as
          at the date as at which those financial statements were drawn up.

     (b)  The Borrower shall procure that each set of financial statements
          delivered pursuant to Clause 18.1 (Financial statements) is prepared
          using GAAP.

18.4 EXERCISE OF OPTIONS

     The Borrower shall notify the Agent upon becoming aware of any exercise or
     proposed exercise of a call option or a put option relating to shares in
     the Borrower under the Shareholders Agreement.

                                      -29-

<PAGE>

18.5 RELEVANT DOCUMENTS

     The Borrower shall notify the Agent of any amendment to a Relevant Document
     (as permitted under this Agreement) promptly after its occurrence.

18.6 INFORMATION: MISCELLANEOUS

     The Borrower shall supply to the Agent (in sufficient copies for all the
     Lenders, if the Agent so requests):

     (a)  all documents dispatched by the Borrower to its shareholders (or any
          class of them) or its creditors generally at the same time as they are
          dispatched;

     (b)  promptly upon becoming aware of them, the details of any litigation,
          arbitration or administrative proceedings which are current,
          threatened or pending against any member of the Group, and which
          might, if adversely determined, have a Material Adverse Effect; and

     (c)  promptly, such further information regarding the financial condition,
          business and operations of any member of the Group as any Finance
          Party (through the Agent) may reasonably request.

18.7 NOTIFICATION OF DEFAULT

     (a)  The Borrower shall notify the Agent of any Default (and the steps, if
          any, being taken to remedy it) promptly upon becoming aware of its
          occurrence.

     (b)  Promptly upon a request by the Agent, the Borrower shall supply to the
          Agent a certificate signed by two of its Authorised Signatories on its
          behalf certifying that no Default is continuing (or if a Default is
          continuing, specifying the Default and the steps, if any, being taken
          to remedy it).

18.8 USE OF WEBSITES

     (a)  The Borrower may satisfy its obligation under this Agreement to
          deliver any information in relation to those Lenders ( the "Website
          Lenders") who accept this method of communication by posting this
          information onto an electronic website designated by the Borrower and
          the Agent (the "Designated Website") if:

          (i)  the Agent expressly agrees (after consultation with each of the
               Lenders) that it will accept communication of the information by
               this method;

          (ii) both the Borrower and the Agent are aware of the address of and
               any relevant password specifications for the Designated Website;
               and

          (iii) the information is in a format previously agreed between the
               Borrower and the Agent.

          If any Lender (a "PAPER FORM LENDER") does not agree to the delivery
          of information electronically then the Borrower shall supply the
          information to the Agent (in sufficient copies for each Paper Form
          Lender) in paper form. In any event the Borrower shall supply the
          Agent with at least one copy in paper form of any information required
          to be provided by it.

                                      -30-

<PAGE>

     (b)  The Agent shall supply each Website Lender with the address of and any
          relevant password specifications for the Designated Website following
          designation of that website by the Borrower and the Agent.

     (c)  The Borrower shall promptly upon becoming aware of its occurrence
          notify the Agent if:

          (i)  the Designated Website cannot be accessed due to technical
               failure;

          (ii) the password specifications for the Designated Website change;

          (iii) any new information which is required to be provided under this
               Agreement is posted onto the Designated Website;

          (iv) any existing information which has been provided under this
               Agreement and posted onto the Designated Website is amended; or

          (v)  the Borrower becomes aware that the Designated Website or any
               information posted onto the Designated Website is or has been
               infected by any electronic virus or similar software.

          If the Borrower notifies the Agent under paragraph (c)(i) or paragraph
          (c)(v) above, all information to be provided by the Borrower under
          this Agreement after the date of that notice shall be supplied in
          paper form unless and until the Agent and each Website Lender is
          satisfied that the circumstances giving rise to the notification are
          no longer continuing.

          Any Website Lender may request, through the Agent, one paper copy of
          any information required to be provided under this Agreement which is
          posted onto the Designated Website. The Borrower shall comply with any
          such request within ten (10) Business Days.

19.  FINANCIAL COVENANTS

19.1 FINANCIAL DEFINITIONS

     In this Clause 19:

     "BORROWINGS" means, at any time, the outstanding principal, capital or
     nominal amount and any fixed or minimum premium payable on prepayment or
     redemption of any indebtedness for or in respect of:

     (a)  moneys borrowed and debit balances with financial institutions;

     (b)  any amount raised by acceptance under any acceptance credit facility;

     (c)  any amount raised pursuant to any note purchase facility or the issue
          of bonds, notes, debentures, loan stock or any similar instrument;

     (d)  the amount of any liability in respect of any lease or hire purchase
          contract which would, in accordance with GAAP, be treated as a finance
          or capital lease (but only the capitalised value therefore);

                                      -31-

<PAGE>

     (e)  receivables sold or discounted (other than any receivables to the
          extent they are sold on a non-recourse basis);

     (f)  any amount of any liability under an advance or deferred purchase
          agreement if one of the primary reasons behind the entry into this
          Agreement is to raise finance; and

     (g)  any amount raised under any other transaction (including any forward
          sale or purchase agreement) having the commercial effect of a
          borrowing.

     "DEBT SERVICE" means, in respect of any Relevant Period, the aggregate of:

     (a)  Finance Charges;

     (b)  the aggregate of all scheduled and mandatory payments of any
          Borrowings falling due and any voluntary prepayment made (but
          excluding any amounts falling due under any overdraft or revolving
          facility and which were available for simultaneous redrawing according
          to the terms of such facility and/or any amounts related to a
          committed refinancing);

     (c)  the amount of the capital element of any payments in respect of that
          Relevant Period payable under any finance lease or capital lease
          entered into by the Borrower;

     and so that no amount shall be included more than once.

     "EBIT" means the profits of the Borrower from ordinary activities before
     taxation:

     (a)  before deducting any Finance Charges; and

     (b)  before taking into account any items treated as exceptional or
          extraordinary items,

     in each case, to the extent added, deducted or taken into account, as the
     case may be, for the purposes of determining profits of the Borrower from
     ordinary activities before taxation.

     "EBITDA" means EBIT before deducting any amount attributable to the
     amortisation of intangible assets or the depreciation of tangible assets.

     "FINANCE CHARGES" means, for any Relevant Period, the aggregate amount of
     the accrued interest, commission, fees, discounts, prepayment penalties or
     premiums and other finance payments in respect of Borrowings whether paid,
     payable or capitalised by the Borrower in respect of that Relevant Period:

     (a)  including the interest element of leasing and hire purchase payments;
          and

     (b)  including any accrued commission, fees, discounts and other finance
          payments payable by the Borrower under any interest rate hedging
          arrangement.

                                      -32-
<PAGE>

     "GROSS REVENUE" means, for any Relevant Period, all revenues of the
     Borrower from the sale of all products and by-products of the Core
     Business, in each case, as set out in the most recent audited accounts of
     the Borrower.

     "INR" means the lawful currency of the Republic of India.

     "INTEREST PAYABLE" means the aggregate amount of accrued interest payable
     by the Borrower in respect of Borrowings.

     "RELEVANT PERIOD" means each period of twelve (12) months ending on the
     last day of the Borrower's financial year and each period of twelve (12)
     months ending on the last day of the first half of the Borrower's financial
     year (or such other period as agreed between the Borrower and the Majority
     Lenders).

     "TANGIBLE NET WORTH" means at any time the aggregate of the amounts paid up
     or credited as paid up on the issued ordinary share capital of the Borrower
     and the aggregate amount of the reserves of the Borrower,

     including:

     (a)  any amount credited to the share premium account;

     (b)  any capital redemption reserve fund; and

     (c)  any balance standing to the credit of the profit and loss account of
          the Borrower,

     but deducting:

     (d)  any debit balance on the profit and loss account of the Borrower;

     (e)  (to the extent included) any amount shown in respect of goodwill or
          other intangible assets of the Borrower;

     (f)  (to the extent included) any amount set aside for taxation, deferred
          taxation or bad debts; and

     (g)  any amount in respect of any dividend or distribution declared,
          recommended or made by the Borrower and to the extent such
          distribution is not provided for in the most recent financial
          statements,

     and so that no amount shall be included or excluded more than once.

     "TOTAL DEBT" means, at any time, the aggregate amount of all obligations of
     the Borrower for or in respect of Borrowings (including, without limitation
     secured and unsecured long term and short term debt including working
     capital facilities).

19.2 FINANCIAL CONDITION

     The Borrower shall ensure that:

     (a)  INTEREST COVER

          The ratio of EBIT to Interest Payable for any Relevant Period shall
          not at any time be less than 3.0 : 1.0

                                      -33-

<PAGE>

     (b)  LEVERAGE

          The ratio of Total Debt to EBITDA for any Relevant Period shall not at
          any time exceed 2.5:1.0:

     (c)  DEBT SERVICE

          The ratio of EBITDA to Debt Service for any Relevant Period shall not
          at any time be less than 1.5 : 1.0

     (d)  TANGIBLE NET WORTH

          The Tangible Net Worth of the Borrower shall at no time be less than
          sixteen billion Indian rupees (INR 16,000,000,000)

     (e)  GEARING

          The ratio of Total Debt to Tangible Net Worth shall at no time exceed
          1.5 : 1.0

19.3 FINANCIAL TESTING

     The financial covenants set out in Clause 19.2 (Financial condition) shall
     be tested by reference to each of the annual audited financial statements
     and semi-annual unaudited financial statements as well as each Compliance
     Certificate delivered pursuant to Clause 18.2 (Compliance Certificate).

20.  GENERAL UNDERTAKINGS

     The undertakings in this Clause 20 remain in force from the date of this
     Agreement for so long as any amount is outstanding under the Finance
     Documents or any Commitment is in force.

20.1 AUTHORISATIONS

     The Borrower shall promptly:

     (a)  obtain, comply with and do all that is necessary to maintain in full
          force and effect; and

     (b)  supply certified copies to the Agent of,

     any Authorisation required under any law or regulation of its jurisdiction
     of incorporation to enable it to perform its obligations under the Finance
     Documents and to ensure the legality, validity, enforceability or
     admissibility in evidence in its jurisdiction of incorporation of any
     Finance Document.

20.2 COMPLIANCE WITH LAWS

     The Borrower shall comply in all respects with all laws to which it may be
     subject, if failure so to comply would materially impair its ability to
     perform its obligations under the Finance Documents.

20.3 NEGATIVE PLEDGE

     (a)  The Borrower shall not create or permit to subsist any Security over
          any of its present and future assets or revenues.

                                      -34-

<PAGE>

     (b)  The Borrower shall not:

          (i)  sell, transfer or otherwise dispose of any of its assets on terms
               whereby they are or may be leased to or re-acquired by the
               Borrower or any other member of the Group;

          (ii) sell, transfer or otherwise dispose of any of its receivables on
               recourse terms;

          (iii) enter into any arrangement under which money or the benefit of a
               bank or other account may be applied, set-off or made subject to
               a combination of accounts; or

          (iv) enter into any other preferential arrangement having a similar
               effect, in circumstances where the arrangement or transaction is
               entered into primarily as a method of raising Financial
               Indebtedness or of financing the acquisition of an asset.

     (c)  Paragraph (a) and (b) above does not apply to:

          (i)  any Security granted to a Working Capital Facility Lender over
               Working Capital Assets as security for the Borrower's obligations
               under a Working Capital Facility;

          (ii) any netting or set-off arrangement entered into by the Borrower
               in the ordinary course of its banking arrangements for the
               purpose of netting debit and credit balances;

          (iii) any lien arising by operation of law and in the ordinary course
               of trading; or

          (iv) where the Agent (acting on the instructions of all the Lenders)
               has provided prior written consent, such consent to be provided
               within 15 Business Days from the date of notice to the Lenders
               and such consent not to be unreasonably withheld.

20.4 DISPOSALS

     (a)  The Borrower shall not, in any financial year, enter into a single
          transaction or a series of transactions (whether related or not) and
          whether voluntary or involuntary to sell, lease, transfer or otherwise
          dispose any of any assets.

     (b)  Paragraph (a) above does not apply to any sale, lease, transfer or
          other disposal:

          (i)  made in the ordinary course of business of the disposing entity;

          (ii) where the book value of the assets (when aggregated with the book
               value of the assets for any other sale, lease, transfer or other
               disposal by the Group, other than any permitted under paragraph
               (i) above) does not exceed twenty-five million dollars
               (US$25,000,000) (or its equivalent in another currency or
               currencies) in any financial year; or

                                      -35-

<PAGE>

          (iii) where the Agent (acting on the instructions of the Majority
               Lenders) has provided prior written consent.

20.5 MERGER

     The Borrower shall not (and shall ensure that no other member of the Group
     will) enter into any amalgamation, demerger, merger or corporate
     reconstruction, without the prior written consent of the Agent (acting on
     the instructions of the Majority Lenders).

20.6 CHANGE OF BUSINESS

     The Borrower shall ensure that no substantial change is made to the general
     nature of its Core Business from time to time or the business of the Group
     from that carried on at the date of this Agreement.

20.7 INVESTMENTS AND ACQUISITIONS

     The Borrower shall not, other than in line with its Core Business, acquire
     any share or loan capital of any corporate body or other investments in
     aggregate in excess of ten per cent. (10%) of the Borrower's Tangible Net
     Worth provided that this restriction shall not be applied in the case of
     Financial Investments.

20.8 RELEVANT DOCUMENTS

     (a)  The Borrower shall not agree to amend and shall procure that no
          Relevant Document is amended in such a way as will or will be likely
          to cause a Material Adverse Effect.

     (b)  The Borrower shall not terminate or agree to terminate or issue any
          notice to terminate any Relevant Document without the prior written
          consent of the Agent (acting on the instructions of the Majority
          Lenders, not to be unreasonably withheld).

     (c)  The Borrower shall comply with all of its obligations under the
          Relevant Documents.

     (d)  The Borrower shall maintain and, in good faith and in the best
          interests of the Borrower take all reasonable steps to enforce its
          rights and to exercise its discretions under the Relevant Documents.

20.9 CORE BUSINESS OPERATIONS

     The Borrower will operate its Core Business in accordance with prudent
     operating practice.

20.10 INSURANCE

     The Borrower shall (and shall ensure that each member of the Group will)
     maintain insurances on and in relation to its Core Business with reputable
     underwriters or insurance companies against those risks and to the extent
     as is usual for companies carrying on the same or substantially similar
     business.

20.11 ENVIRONMENTAL COMPLIANCE

     The Borrower shall (and shall ensure that each member of the Group will)
     comply in all material respects with all environmental law and obtain and
     maintain any environmental permits and take all reasonable steps in
     anticipation of known or expected future changes

                                      -36-

<PAGE>

     to or obligations under the same where failure to do so might reasonably be
     expected to have a Material Adverse Effect.

20.12 TAXATION

     The Borrower shall (and shall ensure that each member of the Group will)
     duly and punctually pay and discharge all Taxes imposed upon it or its
     assets within the time period allowed without incurring penalties (save to
     the extent that (i) payment is being contested in good faith, (ii) adequate
     reserves are being maintained for those Taxes and (iii) payment can be
     lawfully withheld).

20.13 LOANS AND GUARANTEES

     The Borrower shall not (and shall ensure that no member of the Group will)
     make any loans, grant any credit or give any guarantee or indemnity (except
     as required under any of the Finance Documents) to or for the benefit of
     any person or otherwise voluntarily assume any liability, whether actual or
     contingent (save in the ordinary course of business), in respect of any
     obligation of any person, of an aggregate amount of twenty-five million
     dollars ($25,000,000) or more in any financial year provided that this
     restriction shall not be applied in the case of Financial Investments.

20.14 DIVIDENDS

     While any Default is continuing, the Borrower shall not (and shall ensure
     that no member of the Group will) pay, make or declare any dividend or
     other distribution in respect of any financial year of that member of the
     Group (unless the Agent, acting on the instructions of all the Lenders, has
     provided its prior written consent).

20.15 SYNDICATION

     The Borrower shall provide reasonable assistance to the Lead Arrangers in
     the preparation of the Information Memorandum for the purposes of the
     syndication of the Loan. Any such assistance shall include, without
     limitation, the availability of senior management for the purpose of
     presentations to and/or meetings with a potential lending institutions, and
     the Borrower shall comply with all reasonable requests for information from
     potential syndicate members for the purposes of achieving a successful
     syndication.

20.16 FINANCIAL YEAR

     The Borrower agrees not to change the date of the end of its financial year
     or financial half-year without the consent of the Agent (acting on the
     instructions of the Majority Lenders).

20.17 FINANCIAL INDEBTEDNESS

     The Borrower shall not incur any Financial Indebtedness or any obligation
     in respect thereof which is, in the opinion of the Lenders, on terms and
     conditions (other than pricing) more favourable to the persons from time to
     time providing such Financial Indebtedness, than the terms and conditions
     of this Agreement unless at the same time:

     (a)  the Borrower offers to execute an amendment to this Agreement the
          effect of which is to give the benefit of such more favourable terms
          and conditions to the Agent, Lead Arrangers and Lenders hereunder; and

     (b)  to the extent the Lenders accept such offer, the Borrower executes
          such amendment,

                                      -37-

<PAGE>

     PROVIDED THAT no Financial Indebtedness shall be incurred unless the
     Borrower is in compliance with the financial covenants contained in Clause
     19 (Financial Covenants) of this Agreement and no Default has occurred and
     is continuing.

20.18 HEDGING

     The Borrower shall follow prudent hedging policies and shall not enter into
     speculative hedging transactions. In any financial year, the Borrower shall
     not enter into hedging transactions with a value in excess of its forecast
     annual production of lead and zinc metals.

20.19 CONSTITUTIONAL CHANGES

     The Borrower shall not effect changes in its constitution (i.e. memorandum
     and articles of association) without the prior written consent of the
     Majority Lenders.

21.  EVENTS OF DEFAULT

     Each of the events or circumstances set out in Clause 21 is an Event of
     Default.

21.1 NON-PAYMENT

     The Borrower does not pay on the due date any amount payable pursuant to a
     Finance Document at the place at and in the currency in which it is
     expressed to be payable.

21.2 FINANCIAL COVENANTS

     Any requirement of Clause 19 (Financial covenants) is not satisfied.

21.3 OTHER OBLIGATIONS

     (a)  The Borrower does not comply with any provision of the Finance
          Documents (other than those referred to in Clause 21.1 (Non-payment)
          and Clause 21.2 (Financial covenants)).

     (b)  No Event of Default under paragraph (a) above will occur if the
          failure to comply is capable of remedy and is remedied within five (5)
          Business Days of the Agent giving notice to the Borrower or the
          Borrower becoming aware of the failure to comply.

21.4 MISREPRESENTATION

     Any representation or statement made or deemed to be made by the Borrower
     in the Finance Documents or any other document delivered by or on behalf of
     the Borrower under or in connection with any Finance Document is or proves
     to have been incorrect or misleading in any material respect when made or
     deemed to be made.

21.5 CROSS DEFAULT

     (a)  Any Financial Indebtedness of any member of the Group is not paid when
          due nor within any originally applicable grace period.

     (b)  Any Financial Indebtedness of any member of the Group is declared to
          be or otherwise becomes due and payable prior to its specified
          maturity as a result of an event of default (however described).

                                      -38-

<PAGE>

     (c)  Any commitment for any Financial Indebtedness of any member of the
          Group is cancelled or suspended by a creditor of any member of the
          Group as a result of an event of default (however described).

     (d)  Any creditor of any member of the Group becomes entitled to declare
          any Financial Indebtedness of any member of the Group due and payable
          prior to its specified maturity as a result of a payment event of
          default (however described).

     (e)  No Event of Default will occur under this Clause 21.5 if the aggregate
          amount of Financial Indebtedness or commitment for Financial
          Indebtedness falling within paragraphs (a) to (d) above is less than
          ten million dollars (US$10,000,000) (or its equivalent in any other
          currency or currencies) EXCEPT THAT if such Financial Indebtedness or
          commitment for Financial Indebtedness has fallen due or been cancelled
          as a result of a default other than a payment default (and the
          Majority Lenders determine in their absolute discretion that such
          default is a technical default), such threshold shall be increased to
          twenty million dollars (US$20,000,000) (or its equivalent in any other
          currency or currencies) provided that the Borrower cures (to the
          satisfaction of the Majority Lenders) such technical default within
          seven (7) days of its occurrence. If during such seven (7) day period,
          any lenders in relation to any other Financial Indebtedness in excess
          of ten million dollars (US$10,000,000) (or its equivalent in any other
          currency or currencies) declare such Financial Indebtedness to be due
          and payable or cancel their commitment for Financial Indebtedness
          (whether as a result of such technical default or otherwise), an Event
          of Default shall immediately occur under this Clause 21.5 without
          reference to the increased threshold or cure period referred to in
          this Clause 21.5(e).

21.6 INSOLVENCY

     (a)  A member of the Group is unable or admits inability to pay its debts
          as they fall due, suspends making payments on any of its debts or, by
          reason of actual or anticipated financial difficulties, commences
          negotiations with one or more of its creditors with a view to
          rescheduling any of its indebtedness.

     (b)  A moratorium is declared in respect of any indebtedness of any member
          of the Group.

21.7 INSOLVENCY PROCEEDINGS

     Any corporate action, legal proceedings or other procedure or step is taken
     in relation to:

     (a)  the suspension of payments, a moratorium of any indebtedness,
          winding-up, dissolution, administration or reorganisation (by way of
          voluntary arrangement, scheme of arrangement or otherwise) of any
          member of the Group;

     (b)  a composition, compromise, assignment or arrangement with any creditor
          of any member of the Group which has the effect of suspending,
          cancelling or waiving payments;

     (c)  the appointment of a provisional liquidator, a liquidator, receiver,
          receiver or manager, administrative receiver, administrator,
          compulsory or interim

                                      -39-

<PAGE>

          manager or other similar officer in respect of any member of the Group
          or any of its assets;

     (d)  the Borrower becoming sick or potentially sick and/or the Borrower is
          referred to the Indian Board of Industrial and Financial
          Reconstruction or any other body similarly empowered;

     (e)  enforcement of any Security over any assets of any member of the
          Group; or

     (f)  any of the events described in (a) to (d) above in respect of a
          Subsidiary of the Borrower, but only where such event might have a
          Material Adverse Effect,

     or any analogous procedure or step is taken in any jurisdiction.

21.8 CREDITORS' PROCESS

     Any expropriation, attachment, sequestration, distress or execution affects
     any asset or assets of a member of the Group.

21.9 GOVERNMENT ACTION

     Any nationalisation or government expropriation affects any part of the
     Core Business.

21.10 UNLAWFULNESS

     It is or becomes unlawful for the Borrower to perform any of its
     obligations under the Finance Documents or the Relevant Documents.

21.11 REPUDIATION

     The Borrower repudiates or evidences an intention to repudiate:

          (i)  a Finance Document; or

          (ii) a Relevant Document where such repudiation will have a Material
               Adverse Effect.

21.12 TERMINATION OF RELEVANT DOCUMENTS OR INABILITY TO OPERATE BUSINESS

     An event occurs which:

     (a)  with the giving of notice, would allow a party other than the Borrower
          to terminate a Relevant Document and as a result of such termination
          there is or will be likely to be a Material Adverse Effect; or

     (b)  would otherwise prevent the Borrower from operating its Core Business.

21.13 MATERIAL ADVERSE CHANGE

     Any event or circumstance occurs which the Majority Lenders reasonably
     believe might have a Material Adverse Effect.

21.14 REQUIRED SHAREHOLDING

     Any member of the Vedanta Group sells any of its shares in the Borrower, to
     any person other than an Affiliate, where the result of such a sale would
     be that the Vedanta Group would hold less than fifty one per cent. (51%) of
     the issued share capital in the Borrower.

                                      -40-

<PAGE>

21.15 MANAGEMENT CONTROL

     The Vedanta Group ceases to Control the Borrower.

21.16 ACCELERATION

     On and at any time after the occurrence of an Event of Default which is
     continuing the Agent may, and shall if so directed by the Majority Lenders
     (subject to the remainder of this Clause 21.16), by notice to the Borrower:

     (a)  cancel the Total Commitments whereupon they shall immediately be
          cancelled;

     (b)  declare that all or part of the Loan, together with accrued interest,
          and all other amounts accrued or outstanding under the Finance
          Documents be immediately due and payable, whereupon they shall become
          immediately due and payable; and/or

     (c)  declare that all or part of the Loan be payable on demand, whereupon
          they shall immediately become payable on demand.

     In respect of a payment default under Clause 21.1 (Non-payment), when
     making a declaration under sub-paragraphs (b) or (c) of this Clause 21.16
     in relation to each or any individual Facility (whether or not the payment
     default relates to that Facility), the Agent must act upon the directions
     of the Majority Lenders calculated in respect of that Facility only.

                                      -41-

<PAGE>

                                    SECTION 8
                               CHANGES TO PARTIES

22.  CHANGES TO THE LENDERS

22.1 ASSIGNMENTS AND TRANSFERS BY THE LENDERS

     Subject to this Clause 22 a Lender (the "EXISTING LENDER") may:

     (a)  assign any of its rights; or

     (b)  transfer by novation any of its rights and obligations,

     under this Agreement to another bank or financial institution or to a
     trust, fund or other entity which is regularly engaged in or established
     for the purpose of making, purchasing or investing in loans, securities or
     other financial assets (the "NEW LENDER").

22.2 CONDITIONS OF ASSIGNMENT OR TRANSFER

     (a)  An assignment will only be effective on receipt by the Agent of
          written confirmation from the New Lender (in form and substance
          satisfactory to the Agent) that the New Lender will assume the same
          obligations to the other Finance Parties as it would have been under
          if it was an Original Lenders under this Agreement.

     (b)  A transfer under Clause 22.1 (Assignments and Transfers by the
          Lenders) will only be effective if the procedure set out in Clause
          22.5 (Procedure for transfer) is complied with.

22.3 ASSIGNMENT OR TRANSFER FEE

     Except in the case of a transfer pursuant to an Accession Agreement, the
     New Lender shall, on the date upon which an assignment or transfer takes
     effect, pay to the Agent (for its own account) a fee of one thousand
     dollars ($1,000).

22.4 LIMITATION OF RESPONSIBILITY OF EXISTING LENDERS

     (a)  Unless expressly agreed to the contrary, an Existing Lender makes no
          representation or warranty and assumes no responsibility to a New
          Lender for:

          (i)  the legality, validity, effectiveness, adequacy or enforceability
               of the Finance Documents or any other documents;

          (ii) the financial condition of the Borrower;

          (iii) the performance and observance by the Borrower of its
               obligations under the Finance Documents or any other documents;
               or

          (iv) the accuracy of any statements (whether written or oral) made in
               or in connection with any Finance Document or any other document,

          and any representations or warranties implied by law are excluded.

                                      -42-

<PAGE>

     (b)  Each New Lender confirms to the Existing Lender and the other Finance
          Parties that it:

          (i)  has made (and shall continue to make) its own independent
               investigation and assessment of the financial condition and
               affairs of the Borrower and its related entities in connection
               with its participation in this Agreement and has not relied
               exclusively on any information provided to it by the Existing
               Lender in connection with any Finance Document; and

          (ii) will continue to make its own independent appraisal of the
               creditworthiness of the Borrower and its related entities whilst
               any amount is or may be outstanding under the Finance Documents
               or any Commitment is in force.

     (c)  Nothing in any Finance Document obliges an Existing Lender to:

          (i)  accept a re-transfer from a New Lender of any of the rights and
               obligations assigned or transferred under this Clause 22; or

          (ii) support any losses directly or indirectly incurred by the New
               Lender by reason of the non-performance by the Borrower of its
               obligations under the Finance Documents or otherwise.

22.5 PROCEDURE FOR TRANSFER

     (a)  Subject to the conditions set out in Clause 22.2 (Conditions of
          assignment or transfer) a transfer is effected in accordance with
          paragraph (b) below when the Agent executes an otherwise duly
          completed Transfer Certificate delivered to it by the Existing Lender
          and the New Lender. The Agent shall, as soon as reasonably practicable
          after receipt by it of a duly completed Transfer Certificate appearing
          on its face to comply with the terms of this Agreement and delivered
          in accordance with the terms of this Agreement, execute that Transfer
          Certificate.

     (b)  On the Transfer Date:

          (i)  to the extent that in the Transfer Certificate the Existing
               Lender seeks to transfer by novation its rights and obligations
               under the Finance Documents the Borrower and the Existing Lender
               shall be released from further obligations towards one another
               under the Finance Documents and their respective rights against
               one another under the Finance Documents shall be cancelled (being
               the "DISCHARGED RIGHTS AND OBLIGATIONS");

          (ii) the Borrower and the New Lender shall assume obligations towards
               one another and/or acquire rights against one another which
               differ from the Discharged Rights and Obligations only insofar as
               the Borrower and the New Lender have assumed and/or acquired the
               same in place of the Borrower and the Existing Lender;

          (iii) the Agent, the New Lender and other Lenders shall acquire the
               same rights and assume the same obligations between themselves as
               they would

                                      -43-

<PAGE>

               have acquired and assumed had the New Lender been an Original
               Lender with the rights and/or obligations acquired or assumed by
               it as a result of the transfer and to that extent the Agent, the
               Lead Arrangers and the Existing Lender shall each be released
               from further obligations to each other under the Finance
               Documents; and

          (iv) the New Lender shall become a Party as a "Lender".

22.6 DISCLOSURE OF INFORMATION

     Any Finance Party may disclose to any of its Affiliates or any head, branch
     and representative office and any other person:

     (a)  to (or through) whom that Finance Party assigns or transfers (or may
          potentially assign or transfer) all or any of its rights and
          obligations under this Agreement;

     (b)  with (or through) whom that Finance Party enters into (or may
          potentially enter into) any sub-participation in relation to, or any
          other transaction under which payments are to be made by reference to,
          this Agreement or the Borrower; or

     (c)  to whom, information is required to be disclosed by any applicable law
          or regulation or any judicial, quasi judicial or administrative order,

     any customer information or other information about the Borrower, the Group
     and the Finance Documents as that Finance Party shall consider appropriate.

     (d)  if the Borrower commits a default in payment of any amount under this
          Agreement, any Finance Party will have an unqualified right to
          disclose to such persons as the Finance Party thinks fit or publish
          the details of the default and the name of the Borrower and its
          directors as defaulters, and any other information pertaining to the
          Borrower, the Group or any of the directors of the Borrower or its
          Group in such manner, through such medium and in such jurisdiction as
          such Finance Party in its absolute discretion may think fit.

     (e)  this Clause 22.6 is not, and shall not be deemed to constitute, an
          express or implied agreement by any Finance Party with the Borrower or
          the Group for a higher degree of confidentiality than that prescribed
          under any applicable law.

22.7 "KNOW YOUR CUSTOMER" CHECKS

     (a)  The Borrower shall promptly upon the request of the Agent or any
          Lender supply, or procure the supply of, such documentation and other
          evidence as is reasonably requested by the Agent (for itself or on
          behalf of any prospective New Lender) or any Lender (for itself or on
          behalf of any prospective Assignee) to carry out and be satisfied with
          the results of all necessary "know your customer" or other checks in
          relation to any person that it is required to carry out pursuant to
          the transactions contemplated in the Finance Documents; and

     (b)  Each Lender shall promptly upon the request of the Agent supply, or
          procure the supply of, such documentation and other evidence as is
          reasonably requested by the Agent (for itself) in order for the Agent
          to carry out and be satisfied with the results of all necessary "know
          your customer" or other checks

                                      -44-

<PAGE>

          in relation to any person that it is required to carry out pursuant to
          the transactions contemplated in the Finance Documents.

23.  CHANGES TO THE BORROWER

     The Borrower may not assign any of its rights or transfer any of its rights
     or obligations under the Finance Documents without prior written consent of
     all the Lenders.

                                      -45-
<PAGE>

                                    SECTION 9
                               THE FINANCE PARTIES

24.  ROLE OF THE AGENT AND THE LEAD ARRANGERS

24.1 APPOINTMENT OF THE AGENT

     (a)  Each other Finance Party appoints the Agent to act as its agent under
          and in connection with the Finance Documents.

     (b)  Each other Finance Party authorises the Agent to exercise the rights,
          powers, authorities and discretions specifically given to the Agent
          under or in connection with the Finance Documents together with any
          other incidental rights, powers, authorities and discretions.

24.2 DUTIES OF THE AGENT

     (a)  The Agent shall promptly forward to a Party the original or a copy of
          any document which is delivered to the Agent for that Party by any
          other Party.

     (b)  Except where a Finance Document specifically provides otherwise, the
          Agent is not obliged to review or check the adequacy, accuracy or
          completeness of any document it forwards to another Party.

     (c)  If the Agent receives notice from a Lender referring to this
          Agreement, describing a Default and stating that the circumstance
          described is a Default, it shall promptly notify the other Finance
          Parties.

     (d)  If the Agent is aware of the non-payment of any principal, interest,
          commitment fee or other fee payable to a Lender under this Agreement
          it shall promptly notify the other Finance Parties.

     (e)  The Agent's duties under the Finance Documents are solely mechanical
          and administrative in nature and the Agent shall have no other duties,
          save as expressly set out in this Agreement and any other Finance
          Document to which it is a party.

24.3 ROLE OF THE LEAD ARRANGERS

     Except as specifically provided in the Finance Documents, the Lead
     Arrangers have no obligations of any kind to any other Party under or in
     connection with any Finance Document.

24.4 NO FIDUCIARY DUTIES

     (a)  Nothing in this Agreement constitutes the Agent or the Lead Arrangers
          as a trustee or fiduciary of any other person.

     (b)  Neither the Agent nor the Lead Arrangers shall be bound to account to
          any Lender for any sum or the profit element of any sum received by it
          for its own account.

                                      -46-

<PAGE>

24.5 BUSINESS WITH THE GROUP

     The Agent and the Lead Arrangers may accept deposits from, lend money to
     and generally engage in any kind of banking or other business with any
     member of the Group.

24.6 RIGHTS AND DISCRETIONS OF THE AGENT

     (a)  The Agent may rely on:

          (i)  any representation, notice or document believed by it to be
               genuine, correct and appropriately authorised; and

          (ii) any statement made by a director, authorised signatory or
               employee of any person regarding any matters which may reasonably
               be assumed to be within his knowledge or within his power to
               verify.

     (b)  The Agent may assume (unless it has received notice to the contrary in
          its capacity as agent for the Lenders) that:

          (i)  no Default has occurred (unless it has actual knowledge of a
               Default arising under Clause 21.1 (Non-payment)); and

          (ii) any right, power, authority or discretion vested in any Party or
               the Majority Lenders has not been exercised.

     (c)  The Agent may engage, pay for and rely on the advice or services of
          any lawyers, accountants, surveyors or other experts.

     (d)  The Agent may act in relation to the Finance Documents through its
          personnel and agents.

     (e)  The Agent may disclose to any other Party any information it
          reasonably believes it has received as agent under this Agreement.

     (f)  Notwithstanding any other provision of any Finance Document to the
          contrary, neither the Agent nor the Lead Arrangers are obliged to do
          or omit to do anything if it would or might in its reasonable opinion
          constitute a breach of any law or regulation or a breach of a
          fiduciary duty or duty of confidentiality.

24.7 MAJORITY LENDERS' INSTRUCTIONS

     (a)  Unless a contrary indication appears in a Finance Document, the Agent
          shall (i) exercise any right, power, authority or discretion vested in
          it as Agent in accordance with any instructions given to it by the
          Majority Lenders (or, if so instructed by the Majority Lenders,
          refrain from exercising any right, power, authority or discretion
          vested in it as Agent) and (ii) not be liable for any act (or
          omission) if it acts (or refrains from taking any action) in
          accordance with an instruction of the Majority Lenders.

     (b)  Unless a contrary indication appears in a Finance Document, any
          instructions given by the Majority Lenders will be binding on all the
          Finance Parties.

                                      -47-

<PAGE>

     (c)  The Agent may refrain from acting in accordance with the instructions
          of the Majority Lenders (or, if appropriate, the Lenders) until it has
          received such security as it may require for any cost, loss or
          liability (together with any associated VAT) which it may incur in
          complying with the instructions.

     (d)  In the absence of instructions from the Majority Lenders, (or, if
          appropriate, the Lenders) the Agent may act (or refrain from taking
          action) as it considers to be in the best interest of the Lenders.

     (e)  In the absence of instructions from any/all of the Lenders within
          fourteen (14) days following a request from the Borrower for consent
          pursuant to Clause 20.8(b), the Agent shall deem the relevant
          Lender(s) to have granted their consent to such request.

     (f)  The Agent is not authorised to act on behalf of a Lender (without
          first obtaining that Lender's consent) in any legal or arbitration
          proceedings relating to any Finance Document.

24.8 RESPONSIBILITY FOR DOCUMENTATION

     Neither the Agent nor any of the Lead Arrangers:

     (a)  is responsible for the adequacy, accuracy and/or completeness of any
          information (whether oral or written) supplied by the Agent, the Lead
          Arrangers, the Borrower or any other person given in or in connection
          with any Finance Document or the Information Memorandum; or

     (b)  is responsible for the legality, validity, effectiveness, adequacy or
          enforceability of any Finance Document or any other agreement,
          arrangement or document entered into, made or executed in anticipation
          of or in connection with any Finance Document.

     (c)  is obliged to carry out any "know your customer" or other checks in
          relation to any person on behalf of any Lender and each Lender
          confirms to the Agent and the Lead Arrangers that it is solely
          responsible for any such checks it is required to carry out and that
          it may not rely on any statement in relation to such checks made by
          the Agent or the Lead Arrangers.

24.9 EXCLUSION OF LIABILITY

     (a)  Without limiting paragraph (b) below, the Agent will not be liable for
          any action taken by it under or in connection with any Finance
          Document, unless directly caused by its gross negligence or wilful
          misconduct.

     (b)  No Party (other than the Agent) may take any proceedings against any
          officer, employee or agent of the Agent in respect of any claim it
          might have against the Agent or in respect of any act or omission of
          any kind by that officer, employee or agent in relation to any Finance
          Document and any officer, employee or agent of the Agent may rely on
          this Clause subject to Clause 1.4 (Third Party Rights) and the
          provisions of the Contracts (Rights of Third Parties) Act 1999.

                                      -48-

<PAGE>

     (c)  The Agent will not be liable for any delay (or any related
          consequences) in crediting an account with an amount required under
          the Finance Documents to be paid by the Agent if the Agent has taken
          all necessary steps as soon as reasonably practicable to comply with
          the regulations or operating procedures of any recognised clearing or
          settlement system used by the Agent for that purpose.

24.10 LENDERS' INDEMNITY TO THE AGENT

     Each Lender shall (in proportion to its share of the Total Commitments or,
     if the Total Commitments are then zero, to its share of the Total
     Commitments immediately prior to their reduction to zero) indemnify the
     Agent, within three (3) Business Days of demand, against any cost, loss or
     liability incurred by the Agent (otherwise than by reason of the Agent's
     gross negligence or wilful misconduct) in acting as Agent under the Finance
     Documents (unless the Agent has been reimbursed by the Borrower pursuant to
     a Finance Document).

24.11 RESIGNATION OF THE AGENT

     (a)  The Agent may resign and appoint one of its Affiliates as successor by
          giving notice to the other Finance Parties and the Borrower.

     (b)  Alternatively the Agent may resign by giving notice to the other
          Finance Parties and the Borrower, in which case the Majority Lenders
          (after consultation with the Borrower) may appoint a successor Agent.

     (c)  If the Majority Lenders have not appointed a successor Agent in
          accordance with paragraph (b) above within thirty (30) days after
          notice of resignation was given, the Agent (after consultation with
          the Borrower) may appoint a successor Agent.

     (d)  The retiring Agent shall, at its own cost, make available to the
          successor Agent such documents and records and provide such assistance
          as the successor Agent may reasonably request for the purposes of
          performing its functions as Agent under the Finance Documents.

     (e)  The Agent's resignation notice shall only take effect upon the
          appointment of a successor.

     (f)  If the Borrower fails to pay any fees due to the Agent under any
          Agency Fee Letter or the Lenders fail to indemnify the Agent pursuant
          to Clause 24.10 (Lenders' Indemnity to the Agent), the Agent may
          resign within thirty (30) days following notice of such resignation
          was given to the Borrower and the Lenders. Such resignation shall
          become effective upon the expiry of such notice period,
          notwithstanding that a successor Agent may not have been appointed in
          accordance with this Clause 24.11.

     (g)  Upon the appointment of a successor, the retiring Agent shall be
          discharged from any further obligation in respect of the Finance
          Documents but shall remain entitled to the benefit of this Clause 24.
          Its successor and each of the

                                      -49-

<PAGE>

          other Parties shall have the same rights and obligations amongst
          themselves as they would have had if such successor had been an
          original Party.

     (h)  After consultation with the Borrower, the Majority Lenders may, by
          notice to the Agent, require it to resign in accordance with paragraph
          (b) above. In this event, the Agent shall resign in accordance with
          paragraph (b) above.

24.12 CONFIDENTIALITY

     (a)  In acting as agent for the Finance Parties, the Agent shall be
          regarded as acting through its agency division which shall be treated
          as a separate entity from any other of its divisions or departments.

     (b)  If information is received by another division or department of the
          Agent, it may be treated as confidential to that division or
          department and the Agent shall not be deemed to have notice of it.

24.13 RELATIONSHIP WITH THE LENDERS

     (a)  The Agent may treat each Lender as a Lender, entitled to payments
          under this Agreement and acting through its Facility Office unless it
          has received not less than five (5) Business Days prior notice from
          that Lender to the contrary in accordance with the terms of this
          Agreement.

     (b)  Each Lender shall supply the Agent with any information required by
          the Agent in order to calculate the Mandatory Cost in accordance with
          Schedule 4 (Mandatory Cost formulae).

24.14 CREDIT APPRAISAL BY THE LENDERS

     Without affecting the responsibility of the Borrower for information
     supplied by it or on its behalf in connection with any Finance Document,
     each Lender confirms to the Agent and the Lead Arrangers that it has been,
     and will continue to be, solely responsible for making its own independent
     appraisal and investigation of all risks arising under or in connection
     with any Finance Document including but not limited to:

     (a)  the financial condition, status and nature of each member of the
          Group;

     (b)  the legality, validity, effectiveness, adequacy or enforceability of
          any Finance Document and any other agreement, arrangement or document
          entered into, made or executed in anticipation of, under or in
          connection with any Finance Document;

     (c)  whether that Lender has recourse, and the nature and extent of that
          recourse, against any Party or any of its respective assets under or
          in connection with any Finance Document, the transactions contemplated
          by the Finance Documents or any other agreement, arrangement or
          document entered into, made or executed in anticipation of, under or
          in connection with any Finance Document; and

     (d)  the adequacy, accuracy and/or completeness of the Information
          Memorandum and any other information provided by the Agent, any Party
          or by any other person under or in connection with any Finance
          Document, the transactions contemplated by the Finance Documents or
          any other agreement, arrangement

                                      -50-

<PAGE>

          or document entered into, made or executed in anticipation of, under
          or in connection with any Finance Document.

24.15 AGENT'S MANAGEMENT TIME

     Any amount payable to the Agent under Clause 14.2 (Other Indemnities),
     Clause 14.3 (Indemnity to the Agent), Clause 16 (Costs and expenses) and
     Clause 24.10 (Lenders' indemnity to the Agent) shall include the cost of
     utilising the Agent's management time or other resources and will be
     calculated on the basis of such reasonable daily or hourly rates as the
     Agent may notify to the Borrower and the Lenders, and is in addition to any
     fee paid or payable to the Agent under the this Agreement and the Fee
     Letters.

24.16 DEDUCTION FROM AMOUNTS PAYABLE BY THE AGENT

     If any Party owes an amount to the Agent under the Finance Documents the
     Agent may, after giving notice to that Party, deduct an amount not
     exceeding that amount from any payment to that Party which the Agent would
     otherwise be obliged to make under the Finance Documents and apply the
     amount deducted in or towards satisfaction of the amount owed. For the
     purposes of the Finance Documents that Party shall be regarded as having
     received any amount so deducted.

25.  CONDUCT OF BUSINESS BY THE FINANCE PARTIES

     No provision of this Agreement will:

     (a)  interfere with the right of any Finance Party to arrange its affairs
          (tax or otherwise) in whatever manner it thinks fit;

     (b)  oblige any Finance Party to investigate or claim any credit, relief,
          remission or repayment available to it or the extent, order and manner
          of any claim; or

     (c)  oblige any Finance Party to disclose any information relating to its
          affairs (tax or otherwise) or any computations in respect of Tax.

26.  SHARING AMONG THE FINANCE PARTIES

26.1 PAYMENTS TO FINANCE PARTIES

     If a Finance Party (a "RECOVERING FINANCE PARTY") receives or recovers any
     amount from the Borrower other than in accordance with Clause 27 (Payment
     mechanics) and applies that amount to a payment due under the Finance
     Documents then:

     (a)  the Recovering Finance Party shall, within three (3) Business Days,
          notify details of the receipt or recovery, to the Agent;

     (b)  the Agent shall determine whether the receipt or recovery is in excess
          of the amount the Recovering Finance Party would have been paid had
          the receipt or recovery been received or made by the Agent and
          distributed in accordance with Clause 27 (Payment mechanics), without
          taking account of any Tax which would be imposed on the Agent in
          relation to the receipt, recovery or distribution; and

     (c)  the Recovering Finance Party shall, within three (3) Business Days of
          demand by the Agent, pay to the Agent an amount (the "SHARING
          PAYMENT") equal to

                                      -51-

<PAGE>

          such receipt or recovery less any amount which the Agent determines
          may be retained by the Recovering Finance Party as its share of any
          payment to be made, in accordance with Clause 27.5 (Partial payments).

26.2 REDISTRIBUTION OF PAYMENTS

     The Agent shall treat the Sharing Payment as if it had been paid by the
     Borrower and distribute it between the Finance Parties (other than the
     Recovering Finance Party) in accordance with Clause 27.5 (Partial
     payments).

26.3 RECOVERING FINANCE PARTY'S RIGHTS

     (a)  On a distribution by the Agent under Clause 26.2 (Redistribution of
          payments), the Recovering Finance Party will be subrogated to the
          rights of the Finance Parties which have shared in the redistribution.

     (b)  If and to the extent that the Recovering Finance Party is not able to
          rely on its rights under paragraph (a) above, the Borrower shall be
          liable to the Recovering Finance Party for a debt equal to the Sharing
          Payment which is immediately due and payable.

26.4 REVERSAL OF REDISTRIBUTION

     If any part of the Sharing Payment received or recovered by a Recovering
     Finance Party becomes repayable and is repaid by that Recovering Finance
     Party, then:

     (a)  each Lender which has received a share of the relevant Sharing Payment
          pursuant to Clause 26.2 (Redistribution of payments) shall, upon
          request of the Agent, pay to the Agent for account of that Recovering
          Finance Party an amount equal to the appropriate part of its share of
          the Sharing Payment (together with an amount as is necessary to
          reimburse that Recovering Finance Party for its proportion of any
          interest on the Sharing Payment which that Recovering Finance Party is
          required to pay); and

     (b)  that Recovering Finance Party's rights of subrogation in respect of
          any reimbursement shall be cancelled and the Borrower will be liable
          to the reimbursing Finance Party for the amount so reimbursed.

26.5 EXCEPTIONS

     (a)  This Clause 26 shall not apply to the extent that the Recovering
          Finance Party would not, after making any payment pursuant to this
          Clause, have a valid and enforceable claim against the Borrower.

     (b)  A Recovering Finance Party is not obliged to share with any other
          Finance Party any amount which the Recovering Finance Party has
          received or recovered as a result of taking legal or arbitration
          proceedings, if:

          (i)  it notified that other Finance Party of the legal or arbitration
               proceedings; and

          (ii) that other Finance Party had an opportunity to participate in
               those legal or arbitration proceedings but did not do so as soon
               as reasonably practicable

                                      -52-

<PAGE>

               having received notice and did not take separate legal or
               arbitration proceedings.

                                      -53-

<PAGE>

                                   SECTION 10
                                 ADMINISTRATION

27.  PAYMENT MECHANICS

27.1 PAYMENTS TO THE AGENT

     (a)  On each date on which the Borrower or a Lender is required to make a
          payment under a Finance Document, the Borrower or Lender shall make
          the same available to the Agent (unless a contrary indication appears
          in a Finance Document) for value on the due date at the time and in
          such funds specified by the Agent as being customary at the time for
          settlement of transactions in the relevant currency in the place of
          payment.

     (b)  Payment shall be made to such account in the principal financial
          centre of the country of that currency with such bank as the Agent
          specifies.

27.2 DISTRIBUTIONS BY THE AGENT

     Each payment received by the Agent under the Finance Documents for another
     Party shall, subject to Clause 27.3 (Distributions to the Borrower), Clause
     27.4 (Clawback) and Clause 24.16 (Deduction from amounts payable by the
     Agent) be made available by the Agent as soon as practicable after receipt
     to the Party entitled to receive payment in accordance with this Agreement
     (in the case of a Lender, for the account of its Facility Office), to such
     account as that Party may notify to the Agent by not less than five (5)
     Business Days notice with a bank in the principal financial centre of the
     country of that currency.

27.3 DISTRIBUTIONS TO THE BORROWER

     The Agent may (with the consent of the Borrower or in accordance with
     Clause 28 (Set-off)) apply any amount received by it for the Borrower in or
     towards payment (on the date and in the currency and funds of receipt) of
     any amount due from the Borrower under the Finance Documents or in or
     towards purchase of any amount of any currency to be so applied.

27.4 CLAWBACK

     (a)  Where a sum is to be paid to the Agent under the Finance Documents for
          another Party, the Agent is not obliged to pay that sum to that other
          Party (or to enter into or perform any related exchange contract)
          until it has been able to establish to its satisfaction that it has
          actually received that sum.

     (b)  If the Agent pays an amount to another Party and it proves to be the
          case that the Agent had not actually received that amount, then the
          Party to whom that amount (or the proceeds of any related exchange
          contract) was paid by the Agent shall on demand refund the same to the
          Agent together with interest on that amount from the date of payment
          to the date of receipt by the Agent, calculated by the Agent to
          reflect its cost of funds.

27.5 PARTIAL PAYMENTS

     (a)  If the Agent receives a payment that is insufficient to discharge all
          the amounts then due and payable by the Borrower under the Finance
          Documents, the Agent

                                      -54-

<PAGE>

          shall apply that payment towards the obligations of the Borrower under
          the Finance Documents in the following order:

          (i)  FIRST, in or towards payment pro rata of any unpaid fees, costs
               and expenses of the Agent and the Lead Arrangers under the
               Finance Documents;

          (ii) SECONDLY, in or towards payment pro rata of any accrued interest,
               fee or commission due but unpaid under the Finance Documents;

          (iii) THIRDLY, in or towards payment pro rata of any principal due but
               unpaid under the Finance Documents; and

          (iv) FOURTHLY, in or towards payment pro rata of any other sum due but
               unpaid under the Finance Documents.

     (b)  The Agent shall, if so directed by all the Lenders, vary the order set
          out in paragraphs (a)(ii) to (iv) above.

     (c)  Paragraphs (a) and (b) above will override any appropriation made by
          the Borrower.

27.6 NO SET-OFF THE BORROWER

     All payments to be made by the Borrower under the Finance Documents shall
     be calculated and be made without (and free and clear of any deduction for)
     set-off or counterclaim.

27.7 BUSINESS DAYS

     (a)  Any payment which is due to be made on a day that is not a Business
          Day shall be made on the next Business Day in the same calendar month
          (if there is one) or the preceding Business Day (if there is not).

     (b)  During any extension of the due date for payment of any principal or
          Unpaid Sum under this Agreement interest is payable on the principal
          or Unpaid Sum at the rate payable on the original due date.

27.8 CURRENCY OF ACCOUNT

     (a)  Subject to paragraphs (b) and (c) below dollars is the currency of
          account and payment for any sum from the Borrower under any Finance
          Document.

     (b)  Each payment in respect of costs, expenses or Taxes shall be made in
          the currency in which the costs, expenses or Taxes are incurred.

     (c)  Any amount expressed to be payable in a currency other than dollars
          shall be paid in that other currency.

                                      -55-

<PAGE>

27.9 CHANGE OF CURRENCY

     (a)  Unless otherwise prohibited by law, if more than one currency or
          currency unit are at the same time recognised by the central bank of
          any country as the lawful currency of that country, then:

          (i)  any reference in the Finance Documents to, and any obligations
               arising under the Finance Documents in, the currency of that
               country shall be translated into, or paid in, the currency or
               currency unit of that country designated by the Agent (after
               consultation with the Borrower); and

          (ii) any translation from one currency or currency unit to another
               shall be at the official rate of exchange recognised by the
               central bank for the conversion of that currency or currency unit
               into the other, rounded up or down by the Agent (acting
               reasonably).

     (b)  If a change in any currency of a country occurs, this Agreement will,
          to the extent the Agent (acting reasonably and after consultation with
          the Borrower) specifies to be necessary, be amended to comply with any
          generally accepted conventions and market practice in the Relevant
          Interbank Market and otherwise to reflect the change in currency.

28.  SET-OFF

     A Finance Party may set off any matured obligation due from the Borrower
     under the Finance Documents (to the extent beneficially owned by that
     Finance Party) against any matured obligation owed by that Finance Party to
     the Borrower, regardless of the place of payment, booking branch or
     currency of either obligation. If the obligations are in different
     currencies, the Finance Party may convert either obligation at a market
     rate of exchange in its usual course of business for the purpose of the
     set-off.

29.  NOTICES

29.1 COMMUNICATIONS IN WRITING

     Any communication to be made under or in connection with the Finance
     Documents shall be made in writing and, unless otherwise stated, may be
     made by fax, letter or telex or electronic mail, except in the case of a
     consent or an agreement required pursuant to this Agreement or any other of
     the Finance Documents which must be made in writing by fax or letter,
     unless otherwise agreed by the Agent.

29.2 ADDRESSES

     The address, fax number and telex number (and the department or officer, if
     any, for whose attention the communication is to be made) of each Party for
     any communication or document to be made or delivered under or in
     connection with the Finance Documents is:

     (a)  in the case of the Borrower, that identified with its name below;

     (b)  in the case of each Lender, that notified in writing to the Agent on
          or prior to the date on which it becomes a Party; and

     (c)  in the case of the Agent, that identified with its name below,

                                      -56-

<PAGE>

     or any substitute address, fax number, telex number or department or
     officer as the Party may notify to the Agent (or the Agent may notify to
     the other Parties, if a change is made by the Agent) by not less than five
     (5) Business Days' notice.

29.3 DELIVERY

     (a)  Any communication or document made or delivered by one person to
          another under or in connection with the Finance Documents will only be
          effective:

          (i)  if by way of fax, when received in legible form; or

          (ii) if by way of letter, when it has been left at the last notified
               address or five (5) Business Days after being deposited in the
               post postage prepaid in an envelope addressed to it at that
               address; or

          (iii) if by way of telex, when despatched, but only if, at the time of
               transmission, the correct answerback appears at the start and at
               the end of the sender's copy of the notice; or

          (iv) if by way of electronic mail, when the sender receives a
               confirmation of delivery to the recipient;

          and, if a particular department or officer is specified as part of its
          address details provided under Clause 29.2 (Addresses), if addressed
          to that department or officer.

     (b)  Any communication or document to be made or delivered to the Agent
          will be effective only when actually received by the Agent and then
          only if it is expressly marked for the attention of the department or
          officer identified with the Agent's signature below (or any substitute
          department or officer as the Agent shall specify for this purpose).

     (c)  All notices from or to the Borrower shall be sent through the Agent.

     (d)  Any communication or document made or delivered to the Borrower in
          accordance with this Clause will be deemed to have been made or
          delivered to the Borrower.

     (e)  Any communication or document received on a non-Business Day or after
          5 p.m. (in the recipient's jurisdiction) on a Business Day shall be
          deemed to have been received on the following Business Day.

29.4 NOTIFICATION OF ADDRESS, FAX NUMBER AND TELEX NUMBER

     Promptly upon receipt of notification of an address, fax number and telex
     number or change of address, fax number or telex number pursuant to Clause
     29.2 (Addresses) or changing its own address, fax number or telex number,
     the Agent shall notify the other Parties.

                                      -57-

<PAGE>

29.5 ELECTRONIC COMMUNICATION

     (a)  Any communication to be made between the Agent and a Lender under or
          in connection with the Finance Documents may be made by electronic
          mail or other electronic means, if the Agent and the relevant Lender:

          (i)  agree that, unless and until notified to the contrary, this is to
               be an accepted form of communication;

          (ii) notify each other in writing of their electronic mail address
               and/or any other information required to enable the sending and
               receipt of information by that means; and

          (iii) notify each other of any change to their address or any other
               such information supplied by them.

     (b)  Any electronic communication made between the Agent and a Lender will
          be effective only when actually received in readable form and in the
          case of any electronic communication made by a Lender to the Agent
          only if it is addressed in such a manner as the Agent shall specify
          for this purpose.

29.6 ENGLISH LANGUAGE

     (a)  Any notice given under or in connection with any Finance Document must
          be in English.

     (b)  All other documents provided under or in connection with any Finance
          Document must be:

          (i)  in English; or

          (ii) if not in English, and if so required by the Agent, accompanied
               by a certified English translation and, in this case, the English
               translation will prevail unless the document is a constitutional,
               statutory or other official document.

30.  CALCULATIONS AND CERTIFICATES

30.1 ACCOUNTS

     In any litigation or arbitration proceedings arising out of or in
     connection with a Finance Document, the entries made in the accounts
     maintained by a Finance Party are prima facie evidence of the matters to
     which they relate.

30.2 CERTIFICATES AND DETERMINATIONS

     Any certification or determination by a Finance Party of a rate or amount
     under any Finance Document is, in the absence of manifest error, conclusive
     evidence of the matters to which it relates.

30.3 DAY COUNT CONVENTION

     Any interest or fee accruing under a Finance Document will accrue from day
     to day and is calculated on the basis of the actual number of days elapsed
     and a year of 360 days or, in any case where the practice in the Relevant
     Interbank Market differs, in accordance with that market practice.

                                      -58-

<PAGE>

31.  PARTIAL INVALIDITY

     If, at any time, any provision of the Finance Documents is or becomes
     illegal, invalid or unenforceable in any respect under any law of any
     jurisdiction, neither the legality, validity or enforceability of the
     remaining provisions nor the legality, validity or enforceability of such
     provision under the law of any other jurisdiction will in any way be
     affected or impaired.

32.  REMEDIES AND WAIVERS

     No failure to exercise, nor any delay in exercising, on the part of any
     Finance Party, any right or remedy under the Finance Documents shall
     operate as a waiver, nor shall any single or partial exercise of any right
     or remedy prevent any further or other exercise or the exercise of any
     other right or remedy. The rights and remedies provided in this Agreement
     are cumulative and not exclusive of any rights or remedies provided by law.

33.  AMENDMENTS AND WAIVERS

33.1 REQUIRED CONSENTS

     (a)  Subject to Clause 33.2 (Exceptions) any term of the Finance Documents
          may be amended or waived only with the consent of the Majority Lenders
          and the Borrower and any such amendment or waiver will be binding on
          all Parties.

     (b)  The Agent may effect, on behalf of any Finance Party, any amendment or
          waiver permitted by this Clause.

33.2 EXCEPTIONS

     (a)  An amendment or waiver that has the effect of changing or which
          relates to:

          (i)  the definition of "Majority Lenders" in Clause 1.1 (Definitions);

          (ii) an extension to the date of payment of any amount under the
               Finance Documents;

          (iii) a reduction in the Margin or a reduction in the amount of any
               payment of principal, interest, fees or commission payable;

          (iv) an increase in or an extension of any Commitment;

          (v)  a change to the Borrower;

          (vi) any provision which expressly requires the consent of all the
               Lenders; or

          (vii) Clause 2.2 (Finance Parties' rights and obligations), Clause 22
               (Changes to the Lenders) or this Clause 33,

          shall not be made without the prior consent of all the Lenders.

     (b)  An amendment or waiver which relates to the rights or obligations of
          the Agent or the Lead Arrangers may not be effected without the
          consent of the Agent or the Lead Arrangers.

                                      -59-

<PAGE>

34.  COUNTERPARTS

     Each Finance Document may be executed in any number of counterparts, and
     this has the same effect as if the signatures on the counterparts were on a
     single copy of the Finance Document.

                                      -60-

<PAGE>

                                   SECTION 11
                          GOVERNING LAW AND ENFORCEMENT

35.  GOVERNING LAW

     This Agreement is governed by English law.

36.  ENFORCEMENT

36.1 JURISDICTION

     (a)  The courts of England have jurisdiction to settle any dispute arising
          out of or in connection with this Agreement (including a dispute
          regarding the existence, validity or termination of this Agreement) (a
          "DISPUTE").

     (b)  The Parties agree that the courts of England are the most appropriate
          and convenient courts to settle Disputes and accordingly no Party will
          argue to the contrary.

     (c)  No Finance Party shall be prevented from taking proceedings relating
          to a Dispute in any other courts with jurisdiction. To the extent
          allowed by law, the Finance Parties may take concurrent proceedings in
          any number of jurisdictions.

36.2 SERVICE OF PROCESS

     Without prejudice to any other mode of service allowed under any relevant
     law, the Borrower:

     (a)  irrevocably appoints Morgan Walker Solicitors, 115A Chancery Lane,
          London WC2A 1PR, England (Attention: Ashok Sancheti, Partner) as its
          agent for service of process in relation to any proceedings before the
          English courts in connection with any Finance Document; and

     (b)  agrees that failure by a process agent to notify the Borrower of the
          process will not invalidate the proceedings concerned.

36.3 WAVIER OF IMMUNITY

     The Borrower waiver generally all immunity it or its assets or revenues may
     otherwise have in any jurisdiction, including immunity in respect of:

     (a)  the giving of any relief by way of injunction or order for specific
          performance or for the recovery of assets of revenues; and

     (b)  the issue of any process against its assets or revenues for the
          enforcement of a judgement or, in an action in rem, for the asset,
          detection or sale of any of its assets and revenues.

THIS AGREEMENT HAS BEEN ENTERED INTO ON THE DATE STATED AT THE BEGINNING OF THIS
AGREEMENT.

                                      -61-

<PAGE>

                                   SCHEDULE 1

                              THE ORIGINAL PARTIES

                                     PART I

                                  THE BORROWER

NAME OF BORROWER       REGISTRATION NUMBER (OR EQUIVALENT, IF ANY) AND DETAILS
                       FOR NOTICES

Hindustan Zinc Limited Vedanta House
                       75, Nehru Road
                       Vile Parle (East)
                       Mumbai - 400 099

                       Tel: +91 4656 1000

                       Fax: +91 5646 1450

                       Attention: Tarun Jain

                                      -62-
<PAGE>

                                     PART II

                              THE ORIGINAL LENDERS

<TABLE>
<CAPTION>
                                             TRANCHE A     TRANCHE B     TRANCHE C        TOTAL
              NAME OF LENDER                 COMMITMENT    COMMITMENT    COMMITMENT    COMMITMENT
              --------------                -----------   -----------   -----------   ------------
<S>                                         <C>           <C>           <C>           <C>
ABN AMRO Bank N.V.                            3,000,000     6,500,000     3,000,000     12,500,000
Bank of Taiwan, Singapore Branch              1,200,000     2,600,000     1,200,000      5,000,000
CALYON, Singapore Branch                      3,000,000     6,500,000     3,000,000     12,500,000
Canara Bank                                     480,000     1,040,000       480,000      2,000,000
Cathay United Bank                            1,560,000     3,380,000     1,560,000      6,500,000
Chang Hwa Commercial Bank Ltd.                  780,000     1,690,000       780,000      3,250,000
Chiao Tung Bank Co., Ltd., Singapore
   Branch                                       780,000     1,690,000       780,000      3,250,000
DBS Bank Limited                              2,460,000     5,330,000     2,460,000     10,250,000
The Export-Import Bank of the Republic
   of China                                     960,000     2,080,000       960,000      4,000,000
Hua Nan Commercial Bank, Singapore Branch     1,560,000     3,380,000     1,560,000      6,500,000
The International Commercial Bank of
   China, Co. Ltd., Labuan Branch               780,000     1,690,000       780,000      3,250,000
Mascareignes International Bank Ltd.            780,000     1,690,000       780,000      3,250,000
Mizuho Corporate Bank, Ltd., Singapore
   Branch                                     2,400,000     5,200,000     2,400,000     10,000,000
National Bank of Kuwait S.A.K.                1,560,000     3,380,000     1,560,000      6,500,000
The Shanghai Commercial and Savings
   Bank, Ltd.                                   480,000     1,040,000       480,000      2,000,000
Standard Chartered Bank                       3,000,000     6,500,000     3,000,000     12,500,000
Sumitomo Mitsui Banking Corporation           2,400,000     5,200,000     2,400,000     10,000,000
The Sumitomo Trust and Banking Co.,
   Ltd., Singapore Branch                     2,040,000     4,420,000     2,040,000      8,500,000
Syndicate Bank                                  780,000     1,690,000       780,000      3,250,000
                                            -----------   -----------   -----------   ------------
TOTAL                                       $30,000,000   $65,000,000   $30,000,000   $125,000,000
                                            ===========   ===========   ===========   ============
</TABLE>

                                      -63-

<PAGE>

                                   SCHEDULE 2

                              CONDITIONS PRECEDENT

                   CONDITIONS PRECEDENT TO INITIAL UTILISATION

1.   BORROWER

     (a)  A copy of the constitutional documents of the Borrower.

     (b)  A copy of a resolution of the board of directors of the Borrower:

          (i)  approving the terms of, and the transactions contemplated by, the
               Finance Documents to which it is a party and resolving that it
               execute the Finance Documents to which it is a party;

          (ii) authorising a specified person or persons to execute the Finance
               Documents to which it is a party on its behalf; and

          (iii) authorising a specified person or persons, on its behalf, to
               sign and/or despatch all documents and notices (including, if
               relevant, any Utilisation Request and Selection Notice) to be
               signed and/or despatched by it under or in connection with the
               Finance Documents to which it is a party.

     (c)  A specimen of the signature of each person authorised by the
          resolution referred to in paragraph (b) above.

     (d)  A certificate of the Borrower (signed by an Authorised Signatory)
          confirming that borrowing the Total Commitments would not cause any
          borrowing, guaranteeing or similar limit binding on it to be exceeded.

     (e)  A certificate of an Authorised Signatory of the Borrower certifying
          that each copy document relating to it specified in this Schedule 2 is
          correct, complete and in full force and effect as at a date no earlier
          than the date of this Agreement.

     (f)  A Compliance Certificate duly signed by two Authorised Signatories of
          the Borrower confirming, inter alia, compliance with the financial
          covenants set out in Clause 19 (Financial Covenants).

2.   LEGAL OPINIONS

     (a)  A legal opinion of Clifford Chance LLP, legal advisers to the Lead
          Arrangers, Agent and Original Lenders in England, in form and
          substance satisfactory to the Agent.

     (b)  A legal opinion of the legal advisers to the Lead Arrangers, Agent and
          Original Lenders in the Republic of India in form and substance
          satisfactory to the Agent.

                                      -64-

<PAGE>

3.   OTHER DOCUMENTS AND EVIDENCE

     (a)  Evidence that any process agent referred to in Clause 36.2 (Service of
          process) has accepted its appointment.

     (b)  A copy of any other Authorisation or other document, opinion or
          assurance which the Agent considers to be necessary or desirable (if
          it has notified the Borrower accordingly) in connection with the entry
          into and performance of the transactions contemplated by any Finance
          Document or for the validity and enforceability of any Finance
          Document

     (c)  The Original Financial Statements of the Borrower.

     (d)  Evidence that the fees, costs and expenses then due from the Borrower
          pursuant to Clause 9 (Fees) of each Facility Agreement and Clause 16
          (Costs and expenses) have been paid or will be paid by the first
          Utilisation Date.

     (e)  Evidence (in the form of a letter from the Borrower to the Agent and
          the Lenders) that each of the representations and undertakings in
          Clauses 17 (Representation), 18 (Information Undertakings), 19
          (Financial Covenants) and 20 (General Undertakings) are true and
          accurate by reference to the facts and circumstances subsisting on the
          date of execution of this Agreement.

     (f)  Evidence that the Borrower has delivered a duly completed Form 83 to
          the Department of Statistical Analysis and Computer Services (DESACS)
          of the RBI to obtain a loan identification number for the Facility
          under this Agreement.

                                      -65-

<PAGE>

                                   SCHEDULE 3

                                    REQUESTS

                                     PART I

                               UTILISATION REQUEST

From:  Hindustan Zinc Limited

To:    ABN AMRO Bank N.V., as Agent

Dated: [___________] 2005

Dear Sirs

                 HINDUSTAN ZINC LIMITED - ONE HUNDRED AND TWENTY
           FIVE MILLION DOLLAR ($125,000,000) TERM FACILITY AGREEMENT
                 DATED [___________] JULY 2005 (THE "AGREEMENT")

1.   We refer to the Agreement. This is the Utilisation Request. Terms defined
     in the Agreement have the same meaning in this Utilisation Request unless
     given a different meaning in this Utilisation Request.

2.   We wish to borrow a Loan on the following terms:

          Proposed Utilisation Date: [__________] (or, if that is not a Business
                                     Day, the next Business Day)

          Aggregate Amount:          $125,000,000 (as  below) or, if less, the
                                     Available Facility

<TABLE>
<CAPTION>
TRANCHE   INTEREST PERIOD(1)      AMOUNT     REPAYMENT DATE
-------   ------------------   -----------   --------------
<S>       <C>                  <C>           <C>
   A        [___] month(s)     $30,000,000     24 Nov 2006
   B        [___] month(s)     $65,000,000     24 Nov 2008
   C        [___] month(s)     $30,000,000     24 Nov 2010
</TABLE>

3.   We confirm that each condition specified in Clause 4.2 (Further conditions
     precedent) is satisfied on the date of this Utilisation Request.

4.   The proceeds of this Loan should be credited to [account].

5.   This Utilisation Request is irrevocable.

----------
(1)  All interest periods must be the same for all Tranches

                                      -66-

<PAGE>

                                        Yours faithfully

                                        ----------------------------------------
                                        authorised signatory for
                                        HINDUSTAN ZINC LIMITED

                                      -67-

<PAGE>

                                     PART II

                                SELECTION NOTICE

From:  Hindustan Zinc Limited

To:    ABN AMRO Bank N.V., as Agent

Dated: [___________] 2005

Dear Sirs

                 HINDUSTAN ZINC LIMITED - ONE HUNDRED AND TWENTY
           FIVE MILLION DOLLAR ($125,000,000) TERM FACILITY AGREEMENT
                 DATED [___________] JULY 2005 (THE "AGREEMENT")

1.   We refer to the Agreement. This is a Selection Notice. Terms defined in the
     Agreement have the same meaning in this Selection Notice unless given a
     different meaning in this Selection Notice.

2.   We refer to the Loan with an Interest Period ending on [___________].

     We request that the next Interest Period for the above Loan is [_____].

3.   This Selection Notice is irrevocable.

                                        Yours faithfully

                                        ----------------------------------------
                                        authorised signatory for
                                        HINDUSTAN ZINC LIMITED

                                      -68-

<PAGE>

                                   SCHEDULE 4

                             MANDATORY COST FORMULAE

1.   The Mandatory Cost is an addition to the interest rate to compensate
     Lenders for the cost of compliance with (a) the requirements of the
     Financial Services Authority or any other authority which replaces all or
     any of its functions) or (b) the requirements of the European Central Bank.

2.   On the first day of each Interest Period (or as soon as possible
     thereafter) the Agent shall calculate, as a percentage rate, a rate (the
     "ADDITIONAL COST RATE") for each Lender, in accordance with the paragraphs
     set out below. The Mandatory Cost will be calculated by the Agent as a
     weighted average of the Lenders' Additional Cost Rates (weighted in
     proportion to the percentage participation of each Lender in the relevant
     Loan) and will be expressed as a percentage rate per annum.

3.   The Additional Cost Rate for any Lender lending from a Facility Office in a
     Participating Member State will be the percentage notified by that Lender
     to the Agent. This percentage will be certified by that Lender in its
     notice to the Agent to be its reasonable determination of the cost
     (expressed as a percentage of that Lender's participation in all Loans made
     from that Facility Office) of complying with the minimum reserve
     requirements of the European Central Bank in respect of loans made from
     that Facility Office.

4.   The Additional Cost Rate for any Lender lending from a Facility Office in
     the United Kingdom will be calculated by the Agent as follows:

          E X 0.01
          -------- per cent. per annum.
             300

     Where:

     E    is designed to compensate Lenders for amounts payable under the Fees
          Rules and is calculated by the Agent as being the average of the most
          recent rates of charge supplied by the Reference Banks to the Agent
          pursuant to paragraph 7 below and expressed in pounds per one million
          pounds (GBP1,000,000).

5.   For the purposes of this Schedule:

     (a)  "FEES RULES" means the rules on periodic fees contained in the FSA
          Supervision Manual or such other law or regulation as may be in force
          from time to time in respect of the payment of fees for the acceptance
          of deposits;

     (b)  "FEE TARIFFS" means the fee tariffs specified in the Fees Rules under
          the activity group A.1 Deposit acceptors (ignoring any minimum fee or
          zero rated fee required pursuant to the Fees Rules but taking into
          account any applicable discount rate); and

     (c)  "TARIFF BASE" has the meaning given to it in, and will be calculated
          in accordance with, the Fees Rules.

                                      -69-

<PAGE>

6.   If requested by the Agent, each Reference Bank shall, as soon as
     practicable after publication by the Financial Services Authority, supply
     to the Agent, the rate of charge payable by that Reference Bank to the
     Financial Services Authority pursuant to the Fees Rules in respect of the
     relevant financial year of the Financial Services Authority (calculated for
     this purpose by that Reference Bank as being the average of the Fee Tariffs
     applicable to that Reference Bank for that financial year) and expressed in
     pounds per one million pounds (GBP1,000,000) of the Tariff Base of that
     Reference Bank.

7.   Each Lender shall supply any information required by the Agent for the
     purpose of calculating its Additional Cost Rate. In particular, but without
     limitation, each Lender shall supply the following information on or prior
     to the date on which it becomes a Lender:

     (a)  the jurisdiction of its Facility Office; and

     (b)  any other information that the Agent may reasonably require for such
          purpose.

     Each Lender shall promptly notify the Agent of any change to the
     information provided by it pursuant to this paragraph.

8.   The Agent shall have no liability to any person if such determination
     results in an Additional Cost Rate which over or under compensates any
     Lender and shall be entitled to assume that the information provided by any
     Lender or Reference Bank pursuant to paragraphs 3, 7 and 8 above is true
     and correct in all respects.

9.   The Agent shall distribute the additional amounts received as a result of
     the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate
     for each Lender based on the information provided by each Lender and each
     Reference Bank pursuant to paragraphs 3, 7 and 8 above.

10.  Any determination by the Agent pursuant to this Schedule in relation to a
     formula, the Mandatory Cost, an Additional Cost Rate or any amount payable
     to a Lender shall, in the absence of manifest error, be conclusive and
     binding on all Parties.

11.  The Agent may from time to time, after consultation with the Borrower and
     the Lenders, determine and notify to all Parties any amendments which are
     required to be made to this Schedule in order to comply with any change in
     law, regulation or any requirements from time to time imposed by the
     Financial Services Authority or the European Central Bank (or, in any case,
     any other authority which replaces all or any of its functions) and any
     such determination shall, in the absence of manifest error, be conclusive
     and binding on all Parties.

                                      -70-

<PAGE>

                                   SCHEDULE 5

                          FORM OF TRANSFER CERTIFICATE

To:    ABN AMRO Bank N.V., as Agent

From:  [The Existing Lender] (the "EXISTING LENDER") and [The New Lender] (the
       "NEW LENDER")

Dated: [___________]

                 HINDUSTAN ZINC LIMITED - ONE HUNDRED AND TWENTY
           FIVE MILLION DOLLAR ($125,000,000) TERM FACILITY AGREEMENT
                 DATED [___________] JULY 2005 (THE "AGREEMENT")

1.   We refer to the Agreement. This is a Transfer Certificate. Terms defined in
     the Agreement have the same meaning in this Transfer Certificate unless
     given a different meaning in this Transfer Certificate.

2.   We refer to Clause 22.5 (Procedure for transfer):

     (a)  The Existing Lender and the New Lender agree to the Existing Lender
          transferring to the New Lender by novation all or part of the Existing
          Lender's Commitment, rights and obligations under the Facility
          Agreement as referred to in the attached Schedule in accordance with
          Clause 22.5 (Procedure for transfer).

     (b)  The proposed Transfer Date is [___________].

     (c)  The Facility Office and address, fax number and attention details for
          notices of the New Lender for the purposes of Clause 29.2 (Addresses)
          are set out in the Schedule.

3.   The New Lender expressly acknowledges the limitations on the Existing
     Lender's obligations set out in paragraph (c) of Clause 22.4 (Limitation of
     responsibility of Existing Lenders) of the Agreement.

4.   This Transfer Certificate may be executed in any number of counterparts and
     this has the same effect as if the signatures on the counterparts were on a
     single copy of this Transfer Certificate.

5.   This Transfer Certificate is governed by English law.

                                      -71-

<PAGE>

                                  THE SCHEDULE

               COMMITMENT/RIGHTS AND OBLIGATIONS TO BE TRANSFERRED

     [insert relevant details regarding Tranche A, Tranche B and Tranche C]
         [Facility Office address, fax number and attention details for
                   notices and account details for payments,]

[Existing Lender]                       [New Lender]

By:                                     By:
    ---------------------------------       ------------------------------------

This Transfer Certificate is accepted by the Agent

ABN AMRO Bank N.V., as Agent

By:
    ---------------------------------

                                      -72-

<PAGE>

                                   SCHEDULE 6

                         FORM OF COMPLIANCE CERTIFICATE

To:    ABN AMRO Bank N.V., as Agent

From:  Hindustan Zinc Limited

Dated: [___________]

Dear Sirs

                 HINDUSTAN ZINC LIMITED - ONE HUNDRED AND TWENTY
           FIVE MILLION DOLLAR ($125,000,000) TERM FACILITY AGREEMENT
                 DATED [___________] JULY 2005 (THE "AGREEMENT")

1.   We refer to the Agreement. This is a Compliance Certificate Letter. Terms
     defined in the Agreement have the same meaning in this Compliance
     Certificate Letter unless given a different meaning in this Compliance
     Certificate.

2.   We confirm that:

     (a)  INTEREST COVER

          The ratio of EBIT to Interest Payable for the Relevant Period is not
          less than 3.0 : 1.0. The actual ratio of EBIT to Interest Payable for
          the Relevant Period is [insert].

     (b)  LEVERAGE

          The ratio of Total Debt to EBITDA for any Relevant Period does not
          exceed 2.5:1.0:

          The actual ratio of Total Debt to EBITDA for the Relevant Period is:
          [insert]

     (c)  DEBT SERVICE

          The ratio of EBITDA to Debt Service for any Relevant Period is not
          less than 1.5 : 1.0. The actual ratio of Total Debt to EBITDA for the
          Relevant Period is: [insert]

     (d)  TANGIBLE NET WORTH

          The Tangible Net Worth of the Borrower is not less than sixteen
          billion Indian Rupees (INR 16,000,000,000).

          As at the end of the Relevant Period, the Tangible Net Worth of the
          Borrower is: [insert]

     (e)  GEARING

          The ratio of Total Debt to Tangible Net Worth shall at no time exceed
          1.5 : 1.0.

                                      -73-

<PAGE>

          As at the end of the Relevant Period, the ratio of the Total Debt to
          Tangible Net Worth of the Borrower is: [insert].

3.   We confirm that no Default has occurred, is continuing or will occur as a
     result of any Loan being made available under the Agreement*

4.   We confirm that, as of the date hereof the Representations contained at
     clause 17 of the Agreement are true in all respects.**

Signed:
        -----------------------------   ----------------------------------------
        Authorised Signatory            Authorised Signatory
        Of                              Of
        Hindustan Zinc Limited          Hindustan Zinc Limited

[insert applicable certification language]***

REPORT BY AUDITOR ON COMPLIANCE CERTIFICATE****

In our opinion the attached Compliance Certificate and the financial statements
upon which it is based give a true and fair view of the state of affairs of the
Borrower at [insert date of certificate] and of the profit and source and
application of funds of the Borrower for the financial year ended [date] and
have been properly prepared in accordance with [insert relevant accounting
principles].

-------------------------------------
for and on behalf of
[name of auditors of the Borrower]*****

*    If this statement cannot be made, the certificate should identify any
     Default that is continuing and the steps, if any, being taken to remedy it.

**   If any representation is untrue, the certificate should identify which
     representations cannot be made and to what extent they are inaccurate.

***  To be agreed with the Borrower's auditors and the Lenders prior to signing
     the Agreement.

**** Only applicable if the Compliance accompanies the audited financial
     statements and is to be signed by the auditors.

***** Only applicable if the Compliance Certificate accompanies the audited
     financial statements and is to be signed by the auditors. To be agreed with
     the Borrower's auditors prior to signing the Agreement.

                                      -74-
<PAGE>

                                   SIGNATURES

THE BORROWER

HINDUSTAN ZINC LIMITED

By:
    ---------------------------------

Address:   Vedanta House
           75, Nehru Road
           Vile Parle (East)
           Mumbai 400 099

Fax:       +91 5646 1450
Attention: Tarun Jain/Somnath Patil

THE LEAD ARRANGERS

ABN AMRO BANK N.V.

By:
    ---------------------------------

Address:   63 Chulia Street
           13th Floor
           Singapore 049514

Fax:       +65 6536 2758/7816
Attention: Yong Peck Yuen/Grace Kong

CALYON

By:
    ---------------------------------

Address    168 Robinson Rd #22-01,
           Capital Tower
           Singapore 06891

Fax:       +65 6532 2422
Attention: John Tai

                                      -75-

<PAGE>

STANDARD CHARTERED BANK

By:                                                         (SIGNED)
    ---------------------------------

Address:   19th Floor, New London Bridge House,
           25 London Bridge Street,
           London SE1 9TB

Fax:       +44 20 7280 6504
Attention: Claire Howard / Elain Palmer

THE AGENT

ABN AMRO BANK N.V.

By:                                                         (SIGNED)
    ---------------------------------

Address:   63 Chulia Street
           13th Floor
           Singapore 049514

Fax:       +65 6536 2758/7816
Attention: Yong Peck Yuen/Grace Kong

THE ORIGINAL LENDERS

ABN AMRO BANK N.V.

By:                                                         (SIGNED)
    ---------------------------------

Address:   63 Chulia Street
           13th Floor
           Singapore 049514

Fax:       +65 6536 2758/7816
Attention: Yong Peck Yuen / Grace Kong

                                      -76-

<PAGE>

BANK OF TAIWAN, SINGAPORE BRANCH

By:                                                         (SIGNED)
    ---------------------------------

Address:   80 Raffles Place #28-20,
           UOB Plaza 2
           Singapore 048624

Fax:       +65 653 68203
Attention: James Hsu Chih Wen,
           Deputy General Manager

CALYON. SINGAPORE BRANCH

By:                                                         (SIGNED)
    ---------------------------------

Address:   168 Robinson Rd #22-01,
           Capital Tower,
           Singapore 06891

Fax:       +65 6532 2422
Attention: John Tai

CANARA BANK

By:                                                         (SIGNED)
    ---------------------------------

Address:   Longbow House
           14/20 Chiswell Street
           London EC1Y 4TW
           England

Fax:       +44 207 374 2468
Attention: P. Babu

CATHAY UNITED BANK

By:                                                         (SIGNED)
    ---------------------------------

Address:   3F 65 Kuan Chien Road
           Taipai
           Taiwan

Fax:       +886 2 2370 3794
Attention: Susan Huang/David Chu

                                      -77-

<PAGE>

CHANG HWA COMMERCIAL BANK LTD.

By:                                                         (SIGNED)
    ---------------------------------

Address:   5th Floor
           No. 57, Sec 2 Chung Shan
           Taipai
           Republic of China

Fax:       +886 2 25214873
Attention: Emme Chen

CHIAO TUNG BANK CO., LTD.,
SINGAPORE BRANCH

By:                                                         (SIGNED)
    ---------------------------------

Address:   80 Raffles Place #23-20,
           UOB Plaza 2
           Singapore 048624

Fax:       +65 6536 0680
Attention: Joanne Chung/ Peh Bee Choon

DBS BANK LIMITED

By:                                                         (SIGNED)
    ---------------------------------

Address:   6, Shenton Way
           DBS Building Tower One
           Singapore 068809

Fax:       +65 6225 8407 / +91 22 5638 8898

                                      -78-

<PAGE>

THE EXPORT-IMPORT BANK OF THE REPUBLIC OF CHINA

By:                                                         (SIGNED)
    ---------------------------------

Address:   7th Floor
           3 Nanhai Road
           Taipei (100)
           Taiwan
           Republic of China

Fax:       +886 2 2341 5297
Attention: Linda Wu/Timothy Wang

HUA NAN COMMERCIAL BANK, SINGAPORE BRANCH

By:                                                         (SIGNED)
    ---------------------------------

Address:   80 Robinson Road #14-03
           Singapore 068898

Fax:       +65 6324 2878
Attention: Albert Tsai / Ng Poh Choo

THE INTERNATIONAL COMMERCIAL BANK OF CHINA, CO. LTD.,
LABUAN BRANCH

By:                                                         (SIGNED)
    ---------------------------------

Address:   Suite 12-04, Level 12,
           Wisma Goldhill 67
           Jalan Raja Chulan
           50200 Kuala Lumpur
           Malaysia

Fax:       +60 3 20266799
Attention: Simon Chen / Lisa Wang

                                      -79-

<PAGE>

MASCAREIGNES INTERNATIONAL BANK LTD

By:                                                         (SIGNED)
    ---------------------------------

Address:   One Cathedral Square Level 8
           16 Jules Koenig Street
           PO Box 489
           Port Louis
           Mauritius

Fax:       +230 212 4983
Attention: Hrishikesh Dixit/Shrada Goburdhan

MIZUHO CORPORATE BANK, LTD.
SINGAPORE BRANCH

By:                                                         (SIGNED)
    ---------------------------------

Address:   168 Robinson Road
           #13-00 Capital Tower
           Singapore 068912

Fax:       +65 6416 0590
Attention: Bonnie Lam/Yvonne Lim/Jennie Ang

NATIONAL BANK OF KUWAIT S.A.K.

By:                                                         (SIGNED)
    ---------------------------------

Address:   9 Raffles Place
           #51-01 Republic Plaza
           Singapore 048619

Fax:       +65 6224 5438
Attention: Tan Kim Lan/Charles Ong

                                      -80-

<PAGE>

THE SHANGHAI COMMERCIAL & SAVINGS BANK, LTD.

By:                                                         (SIGNED)
    ---------------------------------

Address:   IF, No. 2, Section 1, Min Chuan East Road
           Taipei
           Taiwan

Fax:       +886 2 2567 1925
Attention: Kevin Shiao/Cimy Tseng

STANDARD CHARTERED BANK

By:                                                         (SIGNED)
    ---------------------------------

Address:   19th Floor, New London Bridge House
           25 London Bridge Street,
           London SE1 9TB

Fax:       +44 020 7280 6504
Attention: Claire Howard / Elaine Palmer

SUMITOMO MITSUI BANKING CORPORATION

By:                                                         (SIGNED)
    ---------------------------------

Address:   3 Temasek Avenue
           #06-01 Centennial Tower
           Singapore 039190

Fax:       +65 6887 0220
Attention: Nancy Chew/Harold Lim

THE SUMITOMO TRUST & BANKING CO., LTD.
SINGAPORE BRANCH

By:                                                         (SIGNED)
    ---------------------------------

Address:   8 Shenton Way
           #45-01 Temasek Tower
           Singapore 068811

Fax:       +65 6224 2873
Attention: Ho Lai Har

                                      -81-

<PAGE>

SYNDICATE BANK

By:                                                         (SIGNED)
    ---------------------------------

Address:   2A Eastcheap
           London
           EC3M 1LH
           England

Fax:       +44 207 283 3830
Attention: Derek J. Dove-Dixon

                                      -82-<PAGE>

                                                                   EXHIBIT 10.14

                          RUPEE TERM FACILITY AGREEMENT

                                Rs. 700,00,00,000

                       Dated this 18th day of August, 2004

                                       For

                        BHARAT ALUMINIUM COMPANY LIMITED

                                   Arranged by

                   ABN AMRO SECURITIES (INDIA) PRIVATE LIMITED

                                MANDATED ARRANGER

                                       AND

               UNION BANK OF INDIA AND EXPORT IMPORT BANK OF INDIA

                               JOINT LEAD MANAGERS

                           IL&FS TRUST COMPANY LIMITED

                        As the Agent and Security Trustee

                                       AND

                      THE BANKS AND FINANCIAL INSTITUTIONS

                         (AS SET OUT IN THE SCHEDULE 1)

                               As Original Lenders

                               DAVE & GIRISH & CO.

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                      PAGE
------                                                                      ----
<S>                                                                         <C>
CLAUSE 1.................................................................     1
INTERPRETATION...........................................................     1
CLAUSE 2.................................................................    12
THE FACILITIES AND DRAWDOWN CONDITIONS...................................    12
CLAUSE 3.................................................................    14
DRAWDOWN.................................................................    14
CLAUSE 4.................................................................    15
REPAYMENT, PREPAYMENT AND CANCELLATION...................................    15
CLAUSE 5.................................................................    16
INTEREST, INTEREST PERIODS...............................................    16
CLAUSE 6.................................................................    19
ADDITIONAL PAYMENT OBLIGATIONS...........................................    19
CLAUSE 7.................................................................    22
SECURITY INTEREST AND SECURITY DOCUMENTS.................................    22
CLAUSE 8.................................................................    23
REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT......................    23
CLAUSE 9.................................................................    36
EVENTS OF DEFAULT........................................................    36
CLAUSE 10................................................................    40
CHANGES TO PARTIES.......................................................    40
CLAUSE 11................................................................    44
THE FINANCE PARTIES......................................................    44
CLAUSE 12................................................................    55
ADMINISTRATION...........................................................    55
SCHEDULE - 1 THE ORIGINAL PARTIES COMMITMENTS AND REPAYMENT INSTALMENTS..    63
SCHEDULE - 2 CONDITIONS PRECEDENT TO DRAWDOWN............................    64
SCHEDULE - 3 REQUESTS....................................................    66
SCHEDULE - 4 FORM OF TRANSFER CERTIFICATE................................    67
SCHEDULE - 5 FORM OF COMPLIANCE CERTIFICATE..............................    69
SCHEDULE - 6 BRIEF DESCRIPTION OF ASSETS.................................    70
SCHEDULE - 7 DESCRIPTION OF SECURED INDEBTEDNESS.........................    73
</TABLE>

<PAGE>

THIS RUPEE TERM FACILITIES AGREEMENT is dated this 18th day of August, 2004 and
made in Mumbai between:

(1)  BHARAT ALUMINIUM COMPANY LIMITED, a public company within the meaning of
     the Companies Act, 1956 and having its registered office at Aluminium
     Sadan, Core-6, Scope office Complex, 7, Lodhi road, New Delhi-110003
     (hereinafter referred to as the "BORROWER", "BALCO", or the "COMPANY");

(2)  ABN AMRO SECURITIES (INDIA) PRIVATE LIMITED (the "MANDATED ARRANGER");

(3)  UNION BANK OF INDIA AND EXPORT IMPORT BANK OF INDIA (the "JOINT LEAD
     MANAGERS");

(4)  THE BANKS AND FINANCIAL INSTITUTIONS listed in Part II of Schedule 1 as
     lenders (the "ORIGINAL LENDERS"); and

(5)  IL&FS TRUST COMPANY LIMITED, as agent and security trustee of the Finance
     Parties (other than itself) (the "AGENT AND SECURITY TRUSTEE").

WHEREAS the Lenders have at the request of the Borrower agreed to make available
to the Borrower, a rupee facility on, and subject to the terms and conditions of
this Agreement.

IT IS AGREED as follows:

                                   CLAUSE - 1

                                 INTERPRETATION

1.   DEFINITIONS AND INTERPRETATION

1.1  DEFINITIONS

In this Agreement:

"AFFILIATE" means with respect to Sterlite or the Borrower as the case may be,
any person which is a holding company or subsidiary of Sterlite or the Borrower
or any

                                       1

<PAGE>

person which, directly or indirectly, (a) controls Sterlite or the Borrower, (b)
is controlled by Sterlite or the Borrower or (c) is controlled by the same
person who, directly or indirectly, controls Sterlite or the Borrower. For the
purposes of this Agreement, the terms "holding company" and "subsidiary" shall
have the meaning ascribed to them under Section 4 of the Companies Act, 1956 and
the term "control" shall mean:

a.   control over the composition of board of directors of Sterlite, the
     Borrower or any Affiliate of either of them;

b.   Control of at least 51% of the issued equity share capital of a company,
     which is an Affiliate of either of the Borrower or Sterlite.

"AGREEMENT" OR THE "FACILITIES AGREEMENT" means this rupee term facilities
agreement.

"ASSETS" means Immovable Properties and Other Properties of the Borrower.

"AUTHORISATION" means:

(a)  An authorisation, consent, approval, resolution, licence, exemption,
     filing, notarisation, lodgement or registration; or

(b)  In relation to anything which will be fully or partly prohibited or
     restricted by law if a Government Agency intervenes or acts in any way
     within a specified period after lodgement, filing, registration or
     notification, the expiry of that period without intervention or action.

"COMMITMENT A" means:

(a)  In relation to an Original Lender, the amount set opposite its name under
     the heading "Commitment A" in Part IIA of Schedule 1 (The Original Parties
     Commitments and Repayment Instalments) and the amount of any other
     Commitment transferred to it under this Agreement; and

(b)  In relation to any other Lender, the amount of any Commitment A transferred
     to it under this Agreement,

to the extent not cancelled, reduced or transferred by it under this Agreement.

                                       2

<PAGE>

"COMMITMENT B" means:

(a)  In relation to an Original Lender, the amount set opposite its name under
     the heading "Commitment B" in Part IIB of Schedule 1 (The Original Parties
     Commitments and Repayment Instalments) and the amount of any other
     Commitment transferred to it under this Agreement; and

(b)  In relation to any other Lender, the amount of any Commitment B transferred
     to it under this Agreement,

to the extent not cancelled, reduced or transferred by it under this Agreement.

"CURRENT ASSETS" means raw materials, semi-finished goods, finished goods
including aluminium ore extracted from mines or purchased, packing materials,
consumable stores, book debts and other assets described as current assets in
financial statements of the Borrower in the form given in Schedule VI Part 1 of
the Companies Act, 1956.

"COMPLIANCE CERTIFICATE" means a certificate delivered pursuant to Clause 8.2.2
(Compliance Certificates) and signed by any director of the Borrower in form and
substance given in Schedule 5.

"DEFAULT" means an Event of Default or any event or circumstance specified in
Clause 9 (Events of Default) which would (with the expiry of a grace period, the
giving of notice, the making of any determination under the Finance Documents or
any combination of any of the foregoing) be an Event of Default.

"DRAWDOWN" means a drawdown of a Facility.

"DRAWDOWN DATE" means the date of a Drawdown.

"DRAWDOWN REQUEST" means a notice substantially in the form set out in Schedule
3 (Request).

"EVENT OF DEFAULT" means any event or circumstance specified as such in Clause 9
(Events of Default).

"EXISTING HYPOTHECATION" means a charge by way of security created on the Other
Properties for securing repayment and payment of Existing Secured Indebtedness

                                       3

<PAGE>

"EXISTING SECURED CREDITORS" means the creditors whose Indebtedness is secured
by the charge on the Assets and the details whereof are given in Schedule 7
hereto.

"EXISTING SECURITY DOCUMENT" means an instrument, whether recording
electronically or manually, creating or evidencing the creation of any security
interest securing any Existing Secured Indebtedness

"EXISTING SECURITY INTEREST" means a Security Interest created in favour
Existing Secured Creditors particulars whereof are given in Schedule 7.

"EXISTING SECURED INDEBTEDNESS" means the existing Indebtedness, repayment and
payment of which is secured by hypothecation and/or mortgage on a pari passu
basis on the properties, details whereof are given in Schedule 7 hereto.

"FACILITY" means Facility A or Facility B, as the context may require;

"FACILITY A" means a rupee term loan facility upto an aggregate amount of Rs.
225 crores to be made available under this Agreement as described in Clause
2.1.1 ("Facility A").

"FACILITY B" means a rupee term loan facility upto an aggregate amount of Rs.
475 crores to be made available under this Agreement as described in Clause
2.1.2 ("Facility B")

"FACILITY OFFICE" means the office or offices notified by a Lender to the Agent
and Security Trustee in writing on or before the date it becomes a Lender (or,
following that date, by not less than five Business Days' written notice) as the
office or offices through which it will perform its obligations under this
Agreement.

"FEE LETTER" means any letter or letters dated on or about the date of this
Agreement between the Arranger and the Borrower (or the Agent and Security
Trustee and the Borrower) setting out any of the fees.

"FINANCE DOCUMENT" means this Agreement, a Security Document, any Fee Letter,
Transfer Certificate, any resignation letter and any other document designated
as such by the Agent and Security Trustee, a Lender and the Borrower.

"FINANCE PARTY" means the Agent and Security Trustee, the Arranger or a Lender,
as the context may require.

                                       4

<PAGE>

"FINANCIAL INDEBTEDNESS" means any indebtedness of the Borrower for or in
respect of:

(a)  Moneys borrowed;

(b)  Any amount raised by acceptance under any acceptance credit facility;

(c)  Any amount raised pursuant to any note purchase facility or the issue of
     bonds, notes, debentures, loan stock or any similar instrument;

(d)  The amount of any liability in respect of any lease or hire purchase
     contract which would, in accordance with GAAP, be treated as a finance or
     capital lease;

(e)  Receivables sold or discounted (other than any receivables to the extent
     they are sold on a non-recourse basis);

(f)  Any amount raised under any other transaction (including any forward sale
     or purchase agreement) having the commercial effect of a borrowing;

(g)  Any derivative transaction entered into in connection with protection
     against or benefit from fluctuation in any rate or price (and when
     calculating the value of any derivative transaction, only marked to market
     value shall be taken into account);

(h)  Any counter-indemnity obligation in respect of a guarantee, indemnity,
     bond, standby or documentary letter of credit or any other instrument
     issued by a bank or financial institution; and

(i)  The amount of any liability in respect of any guarantee or indemnity for
     any of the items referred to in paragraphs (a) to (h) above.

"FUTURE INDEBTEDNESS" means any Financial Indebtedness which may be incurred by
the Borrower from any other creditor.

"GAAP" means generally accepted accounting principles in India.

"GOVERNMENTAL AGENCY" means any government or any governmental agency,
semi-governmental or judicial entity or authority (including, without
limitation, any stock exchange or any self-regulatory organisation established
under statute).

                                       5

<PAGE>

"HOLDING COMPANY" means, in relation to a company or corporation, any other
company or corporation in respect of which that company or corporation is a
Subsidiary.

"IMMOVABLE PROPERTIES" means the immovable properties briefly described in Part
I Schedule 6.

"INDIRECT TAX" means any goods and services tax, consumption tax, value added
tax, excise, sales tax or any tax of a similar nature.

"INDEBTEDNESS" means the Financial Indebtedness, the Loan Amounts outstanding at
the time of computation, or the Future Indebtedness as the context may require.

"INTEREST PAYMENT DATE" means the last day of an Interest Period.

"INTEREST PERIOD" means, each period determined in accordance with Clause 5.2
(Interest Periods) and, in relation to an Unpaid Sum, each period determined in
accordance with Clause 5.1.3(Default interest).

"LENDER" means:

(a)  Any Original Lender; or

(b)  Any bank, financial institution, trust, fund or other entity which has
     become a Party in accordance with Clause 10 (Changes to Parties)

which in each case has not ceased to be a Party in accordance with the terms of
this Agreement.

"LOAN" means Loan A, or Loan B as the context may require.

"LOAN A" means the outstanding amount for the time being of Facility A
disbursed.

"LOAN B" means the outstanding amount for the time being of Facility B
disbursed.

                                       6

<PAGE>

"LOAN AMOUNT" means a Repayment Instalment of a Loan, interest, costs, charges,
expenses and any other amount by the Borrower including fees and/or remuneration
payable to a finance party.

"MAJORITY LENDERS" means:

(a)  If no Loan is then outstanding, a Lender or Lenders whose Commitments
     aggregate more than 66 2/3% of the Total Commitments (or, if the Total
     Commitments have been reduced to zero, aggregated more than 66 2/3% of the
     Total Commitments immediately prior to the reduction); or

(b)  At any other time, a Lender or Lenders whose participation in the aggregate
     amount of the Loans then outstanding is more than 66 2/3% of all the Loans
     then outstanding.

"MATERIAL ADVERSE EFFECT" means a material adverse effect on (a) the business,
operations, property, condition (financial or otherwise) of the Borrower or any
of the Borrower's Subsidiaries, Sterlite; (b) the ability of the Borrower to
perform its obligations under the Finance Documents; or (c) the validity or
enforceability of this Agreement or the rights or remedies of any Finance Party
under the Finance Documents.

"MONTH" means a period starting on one day in a calendar month and ending on the
numerically corresponding day in the next calendar month, except that:

(a)  (Subject to paragraph (c) below)] if the numerically corresponding day is
     not a Business Day, that period shall end on the next Business Day in that
     calendar month in which that period is to end if there is one, or if there
     is not, on the immediately preceding Business Day;

(b)  if there is no numerically corresponding day in the calendar month in which
     that period is to end, that period shall end on the last Business Day in
     that calendar month; and

(c)  if an Interest Period begins on the last Business Day of a calendar month,
     that Interest Period shall end on the last Business Day in the calendar
     month in which that Interest Period is to end.

                                       7

<PAGE>

The above rules will only apply to the last Month of any period.

"ORIGINAL FINANCIAL STATEMENTS" means:

(a)  the audited consolidated financial statements of the Sterlite and its
     subsidiaries for the financial year ended 31st March, 2004; and

(b)  the Borrower's audited financial statements for its financial year ended
     31st March, 2004.

"OTHER PROPERTIES" means the movable properties and assets of the Borrower other
than Current Assets, general particulars whereof are given in Part II of
Schedule 6.

"OTHER SECURED CREDITORS" means Secured Creditors other then the Lenders.

"PARTY" means a party to this Agreement.

"PROJECT" means the project of expansion and modernisation of the existing
facilities undertaken by the Borrower at Korba in the State of Chhattisgarh.

"PROMOTER" means the promoter of a company as defined Regulation 2(1)(h) of the
Take over Code.

"PROPERTIES" means Immovable Properties and Other Properties referred to
collectively.

"REPAYMENT DATE" means the last day of each quarter in the period commencing
from the 51st month from the date of the first Drawdown of a Facility and ending
on the 72nd month from the date of the first Drawdown. .

"REPAYMENT INSTALMENT" means each instalment for repayment of Loan specified in
clause 4.1.1 (Repayment of the Loans).

"REPEATING REPRESENTATIONS" means each of the representations set out in Clauses
8.1.

"SECURED ASSETS" means the Properties on which a Security Interest is created in
favour of a Secured Creditor.

                                       8

<PAGE>

"SECURED CREDITORS" means the creditor in whose favour the Borrower shall have
credited Security Interest for securing the Indebtedness of the Borrower to that
creditor.

"SECURED INDEBTEDNESS" means any Indebtedness secured on any Asset

"SECURITY DOCUMENT" means an instrument in writing and whether registered or not
and includes any memorandum or record whether in writing or recorded manually or
electronically and whether or not signed by a party or parties thereto creating
and/or evidencing the creation of a Security Interest, including Security
Sharing Agreement.

"SECURITY INTEREST" means a mortgage, charge, pledge, lien or other security
interest securing an obligation of any person on any property or assets or any
other agreement or arrangement having a similar effect.

"SECURITY SHARING AGREEMENT means an agreement made by and between all the
Secured Creditors in form and substance satisfactory to the Lenders, providing
for sharing of the realization proceeds including moneys received under
insurance policies, on a pari passu basis, as between all the Secured Creditors,
notwithstanding anything to the contrary contained in any Security Document made
by and between the Borrower and any Secured Creditor and confirmed by the
Borrower by a separate letter or becoming party thereto as may be required by
the Lenders.

"STERLITE" means Sterlite Industries (India) Limited.

"STERLITE GROUP" means Sterlite and its Affiliates.

"SUBSIDIARY" means a subsidiary within the meaning of section 4 of the Companies
Act 1956 (1 of 1956).

"TAKEOVER CODE" means the Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations, 1997.

"TAX" means any tax, levy, cess, impost, duty or other charge or withholding of
a similar nature (including any penalty or interest payable in connection with
any failure to pay or any delay in paying any of the same).

"TERMINATION DATE" means the last date of Availability Period.

                                       9

<PAGE>

"TOTAL COMMITMENT A" means aggregate amount of the Commitment A mentioned in
Part II A of Schedule 1.

"TOTAL COMMITMENT B" means the aggregate amount of the Commitment B mentioned in
Part II B in Schedule 1.

"TRANSFER CERTIFICATE" means a certificate substantially in the form set out in
Schedule 4 (Form of Transfer Certificate) or any other form agreed between the
Agent and Security Trustee and the Borrower.

"TRANSFER DATE" means, in relation to a transfer, the later of:

(a)  the proposed Transfer Date specified in the Transfer Certificate; and

(b)  the date on which the Agent and Security Trustee executes the Transfer
     Certificate.

"UNPAID SUM" means any sum due and payable but unpaid by the Borrower under the
Finance Documents.

"VALUE OF SECURED ASSETS" means the aggregate Written Down Value of the Assets
on which Security Interests shall have been created to secure any Indebtedness
of the Borrower.

"WRITTEN DOWN VALUE OF AN ASSET," means the cost of acquisition of that Asset as
reduced by the depreciation provided upto the date on which the written down
value is to be arrived at as provided under Schedule XIV to the Companies Act,
1956.

1.2  CONSTRUCTION

(a)  Unless a contrary indication appears, any reference in this Agreement to:

(i)  The "AGENT AND SECURITY TRUSTEE", the "ARRANGER", any "FINANCE PARTY", any
     "LENDER", the "BORROWER" or any "PARTY" shall be construed so as to include
     its successors in title, permitted assigns and permitted transferees;

(ii) A "FINANCE DOCUMENT" or any other agreement or instrument is a reference to
     that Finance Document or other agreement or instrument as amended or
     novated;

                                       10

<PAGE>

(iii) A "PERSON" includes any person, firm, company, corporation, government,
     state or agency of a state or any association, trust or partnership
     (whether or not having separate legal personality) or two or more of the
     foregoing;

(iv) A "REGULATION" includes any regulation, rule, official directive, request
     or guideline (whether or not having the force of law) of any governmental,
     intergovernmental or supranational body, agency, department or regulatory,
     self-regulatory or other authority or organisation as amended or
     re-enacted;

(v)  A provision of law is a reference to that provision as amended or
     re-enacted; and

(vi) A time of day is a reference to Mumbai time.

(ix) Singular includes plural and vice-versa and reference to any gender
     includes other gender/s.

(b)  Section, Clause and Schedule headings are for ease of reference only.

(c)  Unless a contrary indication appears, a term used in any other Finance
     Document or in any notice given under or in connection with any Finance
     Document has the same meaning in that Finance Document or notice as in this
     Agreement.

(d)  A Default (other than an Event of Default) is "CONTINUING" if it has not
     been remedied or waived and an Event of Default is "CONTINUING" if it has
     not been [remedied or waived]

                                       11

<PAGE>

                                    CLAUSE 2

                       FACILITIES AND DRAWDOWN CONDITIONS

2.1  FACILITIES

2.1.1 FACILITY A

Subject to the terms of this Agreement, the Lenders shall make available to the
Borrower Facility A in an aggregate amount equal to the Total Commitment A as
specified for each Lender in Part II A of Schedule 1 to this Agreement and the
Borrower agrees to borrow from the Lenders a sum of money equal to the Total
Commitment A.

2.1.2 FACILITY B

Subject to the terms of this Agreement, the Lenders shall make available to the
Borrower Facility B in an aggregate amount equal to the Total Commitment B as
specified for each Lender in Part II B of Schedule 1 to this Agreement and the
Borrower agrees to borrow from the Lenders a sum of money equal to the Total
Commitment B.

2.1.3 CONVERSION OF LOAN A TO LOAN B AND VICE-VERSA:

On the day following an Interest Payment Date, a Lender may, with the consent of
the Borrower convert its participation in Loan A to Loan B or its participation
in Loan B to Loan A, subject to the Borrower executing and registering such
deeds of modification or variation to the Finance Documents, as may be required
by that Lender.

2.2  FINANCE PARTIES' RIGHTS AND OBLIGATIONS

(a)  The obligations of each Finance Party under the Finance Documents are
     several. Failure by a Finance Party to perform its obligations under the
     Finance Documents does not affect the obligations of any other Party under
     that Finance Document. No Finance Party is responsible for the obligations
     of any other Finance Party under the Finance Documents.

(b)  The rights of each Finance Party under or in connection with the Finance
     Documents are separate and independent rights and any debt arising under
     the Finance Documents to a Finance Party from the Borrower shall be a
     separate and independent debt.

                                       12

<PAGE>

(c)  A Finance Party may, except as otherwise stated in the Finance Documents,
     separately enforce its rights under the Finance Documents.

2.3  PURPOSE

The Borrower shall apply all amounts borrowed by it under the Facilities towards
financing of the Project.

2.4  CONDITIONS OF DRAWDOWN

2.4.1 INITIAL CONDITIONS PRECEDENT

The Borrower agrees not to deliver a Drawdown Request unless the Agent and
Security Trustee has received all of the documents including creation of
Security Interest by way of hypothecation on all its Other Properties as
provided in Clause 7 set out hereinafter and subject to such Security Interests
providing the Security cover of 1.33 times and other evidence listed in and
appearing to comply with the requirements of Schedule 2 (Conditions precedent).
The Agent and Security Trustee shall notify the Borrower and the Lenders
promptly upon receiving such documents and other evidence.

2.4.2 FURTHER CONDITIONS PRECEDENT

The Lenders will only be obliged to comply with Clause 3.2 (Lenders'
participation) if on the date of a Drawdown Request for a Loan and on the
proposed Drawdown Date for that Loan:

(i)  no Default is continuing or would result from the proposed drawdown of that
     Loan;

(ii) the Repeating Representations to be made by the Borrower are true in all
     material respects; and

(iii) no notification from the Agent and Security Trustee is received as per
     Clause 4.2.

                                       13

<PAGE>

2.5  FACILITY DRAWDOWN

(a) Each Drawdown shall consist of the amount of participation of each of the
Lenders in the proportion which its Commitment bears to the aggregate amount of
both the Facilities.

(b) Upon receipt of a notice for a Drawdown by the Agent and Security Trustee,
the Agent and Security Trustee shall advise each Lender to provide its
proportion in the amount of the Drawdown to be provided to the Borrower by that
Lender.

(c) Each Drawdown Request for a Commitment shall be in the amount of not less
than Rs. 50 Crores or in multiple of Rs. 50 Crores.

2.6  OTHER CONDITIONS FOR DRAWDOWN

Such part of the amount of a Facility, which has not been drawn within the
Availability Period shall be cancelled and no Lender shall be obliged to provide
its part of the Available Commitment in that Facility after the end of the
Availability Period.

                                    CLAUSE 3

                                    DRAWDOWN

3.1  DRAWDOWN

3.1.1 DELIVERY OF DRAWDOWN REQUEST

The Borrower shall drawdown a Facility by delivery to the Agent and Security
Trustee of a duly completed request, eight Business Day before the proposed
Drawdown Date, in the form contained in Schedule 3 hereto for the amount of a
Loan in that Facility, which shall not be drawndown later than the Termination
Date.

3.1.2 DRAWDOWN REQUEST IRREVOCABLE

(a)  A Drawdown Request is irrevocable and will not be regarded as having been
     duly completed unless:

(i)  the proposed Drawdown Date for that Drawdown is a Business Day within the
     Availability Period.

                                       14

<PAGE>

(ii) the amount of that Drawdown complies with Clause 3.2.

(b)  Only one Drawdown may be requested in each Drawdown Request.

3.2  LENDERS' PARTICIPATION

Upon receiving a request for Drawdown from the Borrower the Agent and Security
Trustee will promptly notify the Lenders of the receipt of the request from the
Borrower stating the amount of such Drawdown and the amount of each Lenders
portion in that Drawdown each Loan and the amount of its participation in that
Loan.

Within two (2) Business Days from receipt of the Drawdown request from the
Borrower, and after due verification, the Agent and Security Trustee shall
notify the Lenders of the Borrowers compliance with the aforesaid conditions.

(a)  If the conditions set out in this Agreement have been met, each Lender
     shall make its participation in each Drawdown available by the Drawdown
     Date for that Drawdown in the relevant Facility through its Facility
     Office.

(b)  The amount of each Lender's participation in each Loan will be equal to the
     proportion borne by its relevant Available Commitment in the relevant
     Facility immediately prior to the making of that Loan.

3.3  DISBURSEMENT OF LOAN

The Lenders shall make available the Drawdown requested for, on the Drawdown
Date of that Drawdown directly to the Borrower by crediting the account of the
Borrower with its bankers as specified in the notice for that Drawdown.

                                    CLAUSE 4

                     REPAYMENT, PREPAYMENT AND CANCELLATION

4.1. REPAYMENT OF LOANS

The Borrower shall repay each Loan outstanding on the Termination Date in eight
equal quarterly Repayment Instalments on the successive Repayment Dates
commencing from the 51st month from the first Drawdown.

4.2  CHANGE OF CONTROL

If the Sterlite Group ceases to control the Borrower:

                                       15

<PAGE>

(i)  the Borrower shall promptly notify the Agent and Security Trustee upon
     becoming aware of that event; and

(ii) if the Majority Lenders so require, the Agent and Security Trustee shall,
     by not less than 7 (Seven) days notice to the Borrower, cancel the Facility
     and if the Facility is drawndown, declare the Loan, together with accrued
     interest, and all other amounts accrued under the Finance Documents
     immediately due and payable, whereupon all such outstanding amounts will
     become immediately due and payable.

4.3  VOLUNTARY CANCELLATION

The Borrower shall have no right to cancel or reduce the amount of the Facility
agreed to be provided to it.

4.4  VOLUNTARY PREPAYMENT OF THE LOANS

The Borrower may prepay all or any part of a Loan to all the Lenders
proportionately. Any such prepayment shall be applied against the Repayment
Instalments in inverse order of maturity.

                                    CLAUSE 5

                           INTEREST, INTEREST PERIODS

5.1  INTEREST

5.1.1 CALCULATION OF INTEREST.

The rate of interest on each Loan for each Interest Period shall be as under:-

INTEREST ON LOAN A

The rate of interest on the Loan A for each Interest Period shall be [7]% per
annum payable on a monthly basis.

INTEREST ON LOAN B

The rate of interest on Loan B for each Interest Period shall be (6.50)% per
annum liable to be reset on the third anniversary of the first Drawdown Date.

                                       16

<PAGE>

The rate of interest as aforesaid may be reset by a Lender after the third
anniversary of the first Drawdown. A Lender desirous of resetting the rate of
interest as aforesaid shall sent an intimation to the Agent and Security Trustee
about the resetting of the rate of interest and advising therein the proposed
revised rate of interest. Promptly on receipt of such a request from any one or
more Lenders the Agent and Security Trustee shall give a 30 days prior notice to
the Borrower resetting therein the revised rate of interest (hereinafter
referred to as the "Reset Rate") on Loan B to be effective from the 30th day of
the date of such notice.

The Borrower, after receipt of such notice from such Agent, shall, not later
than 10 days therefrom advise the Agent as to the Reset Rate acceptable to the
Borrower. If the Reset Rate accepted by the Borrower is not acceptable to a
Lender, the Borrower shall prepay the participation of that Lender not later
than 30 days after the Reset Date together with accrued interest at the then
existing rate of interest but without prepayment penalty. If the Reset Rate
acceptable to the Borrower but is not acceptable to a Lender, that Lender shall
be entitled to call upon the Borrower to prepay its participation in that Loan
and the Borrower shall, in that event, prepay that Lender's participation in the
Loan within 30 days after the Reset Date together with accrued interest thereon
at the then existing rate of interest but without prepayment penalty.

"Reset Date" for the purpose of this clause means the date on which the Reset
Rate on Loan B comes into force following 30 days prior notice by the Lender
proposing the revision in the interest rate, varied every third year from the
first Drawdown.

5.1.2 PAYMENT OF INTEREST

The Borrower shall pay accrued interest on the Loan on the last day of each
Interest Period. The interest payments shall be made at par in Mumbai to the
Lenders.

5.1.3 DEFAULT INTEREST

(a)  If the Borrower fails to pay any amount payable by it under a Finance
     Document on its due date, interest shall accrue on the Unpaid Sum from the
     due date up to the date of actual payment (both before and after judgment)
     at a rate which, subject to paragraph (b) below, is 2 (two) per cent above
     the applicable interest rates depending upon whether such Unpaid Sum
     relates to Loan A or Loan B. Any interest accruing under this clause 5.1.3
     shall be immediately payable by the Borrower forthwith on demand of the
     Agent and Security Trustee or of the Lenders on failure of the Trustee to
     make demand.

                                       17

<PAGE>

(b)  If any Unpaid Sum consists of all or part of a Loan which became due on a
     day which was not the last day of an Interest Period:

     (i)  the first Interest Period for that Unpaid Sum shall have a duration
          equal to the unexpired portion of the current Interest Period; and

     (ii) the rate of interest applying to the Unpaid Sum during that first
          Interest Period shall be 2 per cent higher than the rate which would
          have applied if the Unpaid Sum had not become due.

(c)  Default interest arising on an Unpaid Sum will be paid on a daily rest
     basis and shall be paid with the Unpaid Sum at the end of each Interest
     Period applicable to that Unpaid Sum but will remain immediately due and
     payable.

5.2  INTEREST PERIODS

5.2.1 FIRST INTEREST PERIOD AND THE LAST INTEREST PERIOD

The first Interest Period in respect of the Drawdown of a Loan shall commence
from its Drawdown Date and end on the last day of the calendar month in which
that Drawdown shall have been drawndown. Each Interest Period, other than the
first Interest Period and the last interest Period, in respect of a Loan shall
commence from the end of the preceding Interest Period, and end on the last day
of the next succeeding calendar month in which that Interest Period has
commenced.

Provided however, the last Interest Period in respect of a Loan shall end on the
last Repayment Date for that Loan.

5.2.2 NON-BUSINESS DAYS

If an Interest Period would otherwise end on a day which is not a Business Day,
that Interest Period will instead end on the next Business Day in that calendar
month (if there is one) or the preceding Business Day (if there is not).

5.2.3 ADDITIONAL INTEREST

If the Borrower fails to execute and register (wherever required) the Mortgage
in form and substance satisfactory to the Majority Lenders (i) within six months
from the first Drawdown Date on the Immovable Properties, the Borrower shall pay
to the Finance

                                       18

<PAGE>

Parties, additional interest @ 0.5% per month on the Loan Amounts commencing
from the expiration of six months, until such time as the Mortgage shall have
been created, registered and perfected to the satisfaction of the Agent and
Security Trustee, in addition to the interest payable as provided in Clause
5.1.1 set out hereinbefore.

                                    CLAUSE 6

                         ADDITIONAL PAYMENT OBLIGATIONS

6.1  STAMP DUTY AND OTHER TAXES

The Borrower shall (a) pay and (b) within seven Business Days of demand,
indemnify each Finance Party against any cost, loss or liability that Finance
Party incurs in relation to all stamp duty, registration and other similar Taxes
payable in respect of any every Finance Document.

6.2  INDIRECT TAX

(a)  All consideration expressed to be payable under a Finance Document by the
Borrower to a Finance Party shall be deemed to be exclusive of any Indirect Tax.
If any Indirect Tax is chargeable on any supply made or services rendered by any
Finance Party to any Party in connection with a Finance Document, that Party
shall pay to the Finance Party (in addition to and at the same time as paying
the consideration) an amount equal to the amount of the Indirect Tax.

(b)  Where a Finance Document requires any Party to reimburse a Finance Party
for any costs or expenses, that Party shall also at the same time pay and
indemnify the Finance Party against all Indirect Tax incurred by that Finance
Party in respect of the costs or expenses to the extent the Finance Party
determines that it is not entitled to credit or repayment in respect of the
Indirect Tax.

                                       19

<PAGE>

6.3  OTHER INDEMNITIES

6.3.1 Indemnity to Finance Parties

The Borrower shall within (7) Seven Business Days of demand, indemnify each
Finance Party against any cost, loss or liability incurred by that Finance Party
as a result of:

(a)  the occurrence of any Event of Default;

(b)  any information produced or provided by the Borrower being misleading
     and/or deceptive in any respect;

(c)  any enquiry, investigation, subpoena (or similar order) or litigation with
     respect to the Borrower or with respect to the transactions contemplated or
     financed under this Agreement;

(d)  a failure by the Borrower to pay any amount due under a Finance Document on
     its due date, including without limitation, any cost, loss or liability
     arising as a result of Clause 11.3 (Sharing among the Finance Parties);

(e)  funding, or making arrangements to fund, its participation in a Loan
     requested by the Borrower in a Drawdown Request but not drawn down (other
     than by reason of default or negligence by that Finance Party alone); or

(f)  the Loan (or part of the Loan) not being prepaid in accordance with a
     notice of prepayment given by the Borrower.

6.3.2 INDEMNITY TO THE AGENT AND SECURITY TRUSTEE

The Borrower shall promptly indemnify the Agent and Security Trustee against any
cost, charges, loss or liability incurred by the Agent and Security Trustee
(acting reasonably) under intimation to the Borrower as a result of:

(a)  investigating any event which it reasonably believes is a Default; or

(b)  acting or relying on any notice, request or instruction which it reasonably
     believes to be genuine, correct and appropriately authorised.

                                       20

<PAGE>

6.4  MITIGATION BY THE LENDERS

(a)  Each Finance Party shall, in consultation with the Borrower, take all
     reasonable steps to mitigate any circumstances which arise and which would
     result in any amount becoming payable under or pursuant to, pursuant to,
     any of Clause 6.1 (Stamp Taxes) Clause 6.2 (Indirect Taxes), including (but
     not limited to) transferring its rights and obligations under the Finance
     Documents to another Affiliate or Facility Office.

(b)  Paragraph (a) above does not in any way limit the obligations of the
     Borrower under the Finance Documents.

6.5  LIMITATION OF LIABILITY

(a)  The Borrower shall indemnify each Finance Party for all costs and expenses
     reasonably incurred by that Finance Party as a result of steps taken by it
     under Clause 6.4 (Mitigation).

(b)  A Finance Party is not obliged to take any steps under Clause 6.4
     (Mitigation) if, in the opinion of that Finance Party (acting reasonably),
     to do so might be prejudicial to it.

6.6  COSTS, CHARGES, EXPENSES AND FEES

6.6.1 TRANSACTION EXPENSES

The Borrower shall, within Seven Business Days of demand, pay the Agent and
Security Trustee and the Arranger the amount of all costs and expenses
(including legal fees) reasonably incurred by any of them in connection with the
negotiation, preparation, printing, execution and syndication of:

(a)  this Agreement and any other documents referred to in this Agreement; and

(b)  any other Finance Documents executed after the date of this Agreement.

6.6.2 AMENDMENT COSTS

If the Borrower requests an amendment, waiver or consent, the Borrower shall,
within Seven Business Days of demand, reimburse the Agent and Security Trustee
for the amount of all costs and expenses (including legal fees) reasonably
incurred by the

                                       21

<PAGE>

Agent and Security Trustee in connection with such amendment waiver or consent
as relating to an evaluation, negotiation or compliance with that request or
requirement.

6.6.3 ENFORCEMENT COSTS

The Borrower shall, within (7) Seven Business Days of demand, pay to each
Finance Party the amount of all costs, charges and expenses (including legal
fees) incurred or to be incurred by that Finance Party in connection with the
enforcement of, or the preservation of any rights under, each Finance Document.

6.6.4 COMMITMENT FEES.

The Borrower shall pay to the Lenders on the Termination Date, Commitment Fee
calculated at the rate of 0.15% per annum accruing on a daily basis on the
undrawn amount of the portion of a Facility, commencing from the date hereof,
till the Termination Date.

                                    CLAUSE 7

                    SECURITY INTEREST AND SECURITY DOCUMENTS

The Borrower hereby unconditionally and irrevocably undertakes to the Finance
Parties that it shall create and perfect the Security Interests including
registering the same in form and substance satisfactory to the Agent and
Security Trustee

a)   on or before the first Drawdown, a pari passu charge on the existing
     hypothecation of all the Other Properties under a registered joint deed of
     hypothecation executed in favour of the Agent and Security Trustee in trust
     for and for the benefit the Finance Parties; and

b)   within six months after the first Drawdown mortgage of all the Immovable
     Properties either by way of mortgage by deposit of title deeds or
     registered English mortgage in favour of the Agent and Security Trustee in
     trust for and for the benefit of the Finance Parties by executing,
     delivering and registering such security documents including Security
     Sharing Agreement executed between the Finance Parties and other Secured
     Creditors providing for inter-se ranking of the Security Interest on a pari
     passu basis,

                                       22

<PAGE>

so as to secure repayment and payment of the Loan Amounts by the Borrower to the
Finance Parties on a pari-passu basis, as between the Finance Parties inter-se
and as between the Secured Creditors inter-se.

Provided that the aforesaid charge by way of hypothecation and mortgage shall
rank pari passu with the hypothecations and/or mortgages created or to be
created as security for repayment and payment of Existing Secured Indebtedness
in favour of or for the benefit of the Existing Secured Creditors.

Provided further that, the Borrower shall be at liberty to create any further or
other Security Interests to secure repayment and payment its Future
Indebtedness, on the condition that aggregate value of the Secured Assets shall
not be less than 1.33 times of the aggregate amount of the Secured Indebtedness.

Provided further that no Loan is sought to be secured by way of mortgage by or
under this Agreement and this Agreement is not an agreement to mortgage any
Immovable Property.

                                    CLAUSE 8

         REPRESENTATIONS, UNDERTAKINGS, COVENANTS AND EVENTS OF DEFAULT

8.1  REPRESENTATIONS

The Borrower makes the representations and warranties set out in this Clause 8
to each Finance Party on the date of this Agreement.

8.1.1 STATUS

(a)  It is a company, duly incorporated and validly existing under the laws of
     India.

(b)  It and each of its Subsidiaries has the power to own its assets and carry
     on its business as it is being conducted.

8.1.2 BINDING OBLIGATIONS

(a)  The Borrower declares and confirms that the Facility agreed to be granted
     to the Borrower shall be governed by the terms and conditions as herein
     contained, as well as those embodied in the relative Finance Documents.

                                       23

<PAGE>

(b)  The obligations expressed to be assumed by it in each Finance Document are,
     subject to any general principles of law limiting its obligations which are
     specifically referred to in any legal opinion delivered in accordance with
     Clause 2.4 read with Schedule 2 (Conditions Precedent of Drawdown) legal,
     valid, binding and enforceable obligations.

8.1.3 NON-CONFLICT WITH OTHER OBLIGATIONS

The entry into and performance by the Borrower of, and the transactions
contemplated by, the Finance Documents do not and will not conflict with:

(a)  any law or regulation applicable to it;

(b)  constitutional documents of the Borrower, or any company which is the
     Subsidiary of the Borrower;

(c)  any agreement or instrument binding upon it or any company which is a
     member of Sterlite Group; or

(d)  does not cause any limitation on any of the powers whatsoever of the
     Borrower however imposed, or on the right or ability of the directors of
     the Borrower to exercise such powers to be exceeded.

8.1.4 POWER AND AUTHORITY

(a)  It has the power to enter into, perform and deliver, and has taken all
     necessary action to authorise its entry into, performance and delivery of,
     the Finance Documents to which it is a party and the transactions
     contemplated by those Finance Documents;

(b)  the copies, certified by the Borrower's Company Secretary to be true, of
     the Certificate of Incorporation and the Memorandum and Articles of
     Association of the Borrower are true and effective and the Borrower shall
     not during the currency of this Agreement cause any alterations to be made
     in any of them which would adversely affect the financial condition of the
     Borrower to service a Loan, without prior notification to and written
     consent of the Agent and Security Trustee; and

                                       24

<PAGE>

(c)  the resolutions passed by the Borrower in general meeting on [July 26,
     2004] consenting to the board of directors borrowing moneys in excess of
     the aggregate of the paid up capital of the Borrower and its free reserves,
     a certified copy of the minutes of which has been delivered by the Borrower
     to the Agent and Security Trustee, is and, during the currency of this
     Agreement, shall remain adequate and effective to enable the Lenders to
     grant and the Borrower to receive the credit facilities aforesaid and
     mortgaging and charging the Properties as security for payment of the Loan
     Amounts.

8.1.5 NO MATERIAL ADVERSE CHANGE

The audited profit and loss account of the Borrower for the year ended 31st
March, 2004 and the audited balance sheet of the Borrower as of that date give a
true and fair view of the results of the operations of the Borrower for that
period and the financial position of the Borrower as of that date and that there
has been no material change adverse to the business, assets, conditions or
operations of the Borrower since that date.

8.1.6 MORTGAGE CHARGES

Other than the Existing Security Interests created in favour of the Borrower's
banks on the Assets as more particularly set out in Schedule 7, there exists no
mortgage, charge, hypothecation, pledge, lien, encumbrance or other security
interest whatsoever over the whole or any part of the undertaking or assets,
present or future, including uncalled capital of the Borrower.

8.1.7 VALIDITY AND ADMISSIBILITY IN EVIDENCE

All Authorisations required or desirable:

(a)  to enable it lawfully to enter into, exercise its rights and comply with
     its obligations in the Finance Documents to which it is a party;

(b)  to make the Finance Documents to which it is a party admissible in evidence
     in its jurisdiction of incorporation;

(c)  for it and its Subsidiaries to carry on their business, and which are
     material,

     have been obtained or effected and are in full force and effect.

                                       25
<PAGE>

8.1.8 NO DEFAULT

(a)  No Event of Default is continuing or might reasonably be expected to result
     from the making of a Loan.

(b)  No other event or circumstance is outstanding which constitutes a default
     under any other agreement or instrument which is binding on the Borrower or
     any of its Subsidiaries or to which its (or its Subsidiaries') assets are
     subject which might have a Material Adverse Effect.

8.1.9 NO MISLEADING INFORMATION

(a)  Any factual information provided by the Borrower or any of its Subsidiaries
     was true and accurate in all material respects as at the date it was
     provided or as at the date (if any) at which it is stated.

(b)  Any financial information provided to the Lenders has been prepared on the
     basis of the latest information and on the basis of reasonable assumptions.

8.1.10 FINANCIAL STATEMENTS

(a)  Its Original Financial Statements were prepared in accordance with GAAP
     consistently applied save to the extent expressly disclosed in such
     Original Financial Statements.

(b)  Its Original Financial Statements give a true and fair view and represent
     its financial condition and operations (consolidated in the case of the
     Borrower) during the relevant financial year save to the extent expressly
     disclosed in such Original Financial Statements.

8.1.11 PARI PASSU RANKING

Its payment obligations under the Finance Documents rank at least pari passu
with the claims of all its other unsecured and unsubordinated creditors, except
for obligations mandatorily preferred by law applying to companies generally.

8.1.12 NO PROCEEDINGS PENDING OR THREATENED

No litigation, arbitration or administrative proceedings of or before any court,
arbitral body or agency which, if adversely determined, might reasonably be
expected to have

                                       26

<PAGE>

a Material Adverse Effect have (to the best of its knowledge and belief) been
started or threatened against it or any of its Subsidiaries.

8.1.13 AUTHORISED SIGNATURES

Any person specified as its authorised signatory under Schedule 2 (Conditions
precedent to Drawdown ) or Clause 8.2.4 (d) is authorised to sign Drawdown
Requests and other notices on its behalf.

8.1.14 AUTHORISATIONS

The Borrower has obtained and will obtain all authorizations from the relevant
Governmental Agencies required for the business or activities of the Borrower
including:

(a)  all necessary environment and other clearances for the expansion and
     modernization; and

(b)  the necessary licenses/agreement/contracts and the regulatory approvals
     required for expansion and Modernization Project to be financed under this
     Facility.

8.1.15 WINDING UP

No action for the voluntary or compulsory winding up of the Borrower has been
initiated by the Borrower or any creditors or shareholders.

8.1.16 REPETITION.

The Repeating Representations are deemed to be made by the Borrower by reference
to the facts and circumstances then existing on the date of the Drawdown Request
and the first day of each Interest Period.

8.1.17 SECURITY.

Each Security Document to which the Borrower is a party validly creates or will,
upon execution thereof by the Borrower, create each of the encumbrances which is
expressed to be created by that Security Document and evidences each of the
encumbrance it is expressed to evidence.

                                       27

<PAGE>

8.1.18 GOOD TITLE TO ASSETS.

The Borrower has good, valid and marketable title to, or valid leases or
licences of, and all appropriate Authorisations to use, the Assets necessary to
carry on its business as presently conducted.

8.1.19 LEGAL AND BENEFICIAL OWNER.

The Borrower is the absolute legal owner and beneficial owner of all the Assets
excluding mining leases, which it is entitled, in accordance with the terms of
the respective leases and the Assets other than Current Assets are free from
encumbrances.

8.1.20 INSURANCE.

The Borrower has taken insurance of all its assets on the replacement value
basis and shall modify the same on such terms and conditions as may be
stipulated by the Agent and Security Trustee in consultation with the Lenders.

8.2  OTHER FINANCIAL STATEMENTS AND COMPLIANCE CERTIFICATES

8.2.1 OTHER FINANCIAL STATEMENTS

The Borrower shall supply to the Agent and Security Trustee in sufficient copies
for all the Lenders:

(a)  as soon as the same become available, but in any event within 90 (ninety)
     days after the end of each of its financial years its audited consolidated
     financial statements for that financial year;

(b)  as soon as the same become available, but in any event within 60 (sixty)
     days after the end of each half of each of its financial years its
     consolidated financial statements for that financial half year.

8.2.2 COMPLIANCE CERTIFICATES

(a)  The Borrower shall supply to the Agent and Security Trustee, with each set
     of financial statements delivered pursuant to paragraph (a) or (b) of
     Clause 8.1.10 (Financial statements), a Compliance Certificate setting out
     (in reasonable

                                       28

<PAGE>

     detail) computations as to compliance with Clause 8.3 (Financial covenants)
     as at the date as at which those financial statements were drawn up.

(b)  Each Compliance Certificate delivered pursuant to paragraph (a) of Clause
     8.1.10 (Financial statements) shall in addition be reported on by the
     Borrower's auditors in the form agreed by the Borrower and all the Lenders
     before the date of this Agreement.

8.2.3 REQUIREMENTS AS TO FINANCIAL STATEMENTS

(a)  Each set of financial statements delivered by the Borrower pursuant to
     Clause 8.1.10 (Financial statements) shall be certified by a director of
     the Borrower as fairly representing its financial condition as at the date
     as at which those financial statements were drawn up.

(b)  The Borrower shall provide a certificate to the effect that each set of
     Financial Statements delivered pursuant to Clause 8.1.10 (Financial
     statements) is prepared using GAAP.

(c)  The Borrower shall confirm to the Finance Parties that each set of
     financial statements is delivered pursuant to Clause 8.1.10 (Financial
     statements) and prepared using GAAP, accounting practices and financial
     reference periods is consistent with those applied in the preparation of
     the Original Financial Statements for the Borrower unless, in relation to
     any set of financial statements, it notifies the Agent and Security Trustee
     that there has been a change in GAAP, the accounting practices or reference
     periods and its auditors deliver to the Agent and Security Trustee:

     (i)  a description of any change necessary for those financial statements
          to reflect the GAAP, accounting practices and reference periods upon
          which that Borrower's Original Financial Statements were prepared; and

     (ii) sufficient information, in form and substance as may be reasonably
          required by the Agent and Security Trustee, to enable the Lenders to
          determine whether Clause 8.3 (Financial covenants) has been complied
          with and make an accurate comparison between the financial position

                                       29

<PAGE>

          indicated in those financial statements and that in the Borrower's
          Original Financial Statements.

     Any reference in this Agreement to those financial statements shall be
     construed as a reference to those financial statements as adjusted to
     reflect the basis upon which the Original Financial Statements were
     prepared.]

8.2.4 INFORMATION: MISCELLANEOUS

The Borrower shall supply to the Agent and Security Trustee (in sufficient
copies for all the Lenders, if the Agent and Security Trustee so requests):

(a)  all documents dispatched by the Borrower to its shareholders (or any class
     of them) or its creditors generally at the same time as they are
     despatched;

(b)  promptly upon becoming aware of them, the details of any litigation,
     arbitration or administrative proceedings which are current, threatened or
     pending against, the Borrower or any of its subsidiaries and which might,
     if adversely determined, have a Material Adverse Effect;

(c)  promptly, such further information regarding the financial condition,
     business and operations of any Member of Sterlite Group as any Finance
     Party (through the Agent and Security Trustee) may reasonably request; and

(d)  promptly, notice of any change in authorised signatories of the Borrower
     signed by a director or company secretary of the Borrower accompanied by
     specimen signatures of any new authorised signatories.

8.2.5 NOTIFICATION OF DEFAULT

(a)  The Borrower shall notify the Agent and Security Trustee of any Default
     (and the steps, if any, being taken to remedy it) promptly upon becoming
     aware of its occurrence.

(b)  Promptly upon a request by the Agent and Security Trustee, the Borrower
     shall supply to the Agent and Security Trustee a certificate signed by one
     of its directors or senior officers on its behalf certifying that no
     Default is continuing (or if a Default is continuing, specifying the
     Default and the steps, if any, being taken to remedy it).

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<PAGE>

8.2.6 INFORMATION UNDERTAKINGS

The undertakings in this Clause 8 shall remain in force from the date of this
Agreement for so long as any amount is outstanding under the Finance Documents
or any Commitment is in force.

8.3  FINANCIAL COVENANTS

8.3.1 FINANCIAL CONDITIONS

The Borrower shall ensure that:

(a)  the Total Debt over the Tangible Net Worth, which includes deferred
     taxation will not at any time be greater than 1.5X.

(b)  Interest Cover Ratio is greater than or equal to 2X. (EBITDA/ Gross
     interest);

(c)  the minimum Asset Cover is 1.33X.

(d)  DSCR is greater than or equivalent to 1.25X (PBDIT-Tax) / (Interest +
     Current maturities of long term debt)

(e)  Minimum Networth shall be Rs. 1000 crores by 31st March 2006 onwards and
     Rs. 600 crores prior to 31st March 2006.

For the purpose of this Clause 8.3.1:

"ASSET COVER" means aggregate of the assets consisting of net block,
investments, as increased by the capital works in progress divided by the
loans secured by such Assets, from time to time.

"DEBT SERVICE COVER RATIO" "DSCR" means EBITDA minus tax divided by interest and
current maturity of long term debts.

"EBITDA" means, in relation to any Relevant Period, the total operating profit
of the Borrower for that Relevant Period before taking into account:

(a)  Interest Expense;

(b)  Tax;

(c)  Any share of the profit of any associated company or undertaking, except
     for dividends received in cash by the Borrower; and

(d)  Extraordinary and exceptional items,

                                       31

<PAGE>

after adding back all amounts provided for depreciation and amortisation for
that Relevant Period, as determined (except as needed to reflect the terms of
this Clause 8.3) from the financial statements of the Borrower and Compliance
Certificates delivered under Clause 8.2 (Other Financial statements) and Clause
8.2.2 (Compliance Certificates).

"INTEREST COVER" means EBITDA divided by Gross Interest.

"GROSS INTEREST" means interest expenses shown in the profit and loss account
schedule and excludes any interest income.

"TOTAL DEBT" means all secured and unsecured liabilities such as loans,
difference of current liabilities over current assets as disclosed in the
financial statements of the Borrower prepared from time to time, as reduced by
cash balances and liquid investments.

"TANGIBLE NET WORTH" means net worth of the Borrower excluding deferred revenue
expenditure and goodwill but including deferred taxation.

8.4  OTHER COVENANTS

8.4.1 AFFIRMATIVE COVENANTS

The Borrower covenants that :

(a)  the majority stake of not less than 51% of the paid up equity share capital
     or voting share capital whichever is higher shall remain with the Sterlite
     Group.

(b)  any loans/deposits by the Borrower to any member of Sterlite Group shall be
     undertaken with the prior consent of the Lenders.

(c)  independent certified engineer appointed by the Lenders shall certify the
     Project completion activities for the entire expansion and monitor and
     report progress on a six monthly basis. Project milestones as well as
     project completion date as certified by the independent certified engineer
     will be adhered to.

(d)  all subsequent financing shall be with permission of the Original Lenders
     and shall at all times rank pari-passu or subordinated with the terms and
     conditions

                                       32

<PAGE>

     and repayment schedule under this agreement. Such covenant shall not have
     any cure period and shall be considered an accelerated Event of Default.

(e)  Assignment of the performance/completion guarantees for the project
     components other than the captive power plant, shall be made in favour of
     the Agent and Security Trustee in the event of the occurrence of any Event
     of Default under this Agreement.

(f)  No dividend shall be paid by the Borrower where any of the terms of lending
     or conditions defined in this Agreement is in default. Such events shall
     include without limitation cross default, payment default, other breaches
     of facility agreement, misrepresentation, insolvency (and insolvency
     proceedings), cessation or material change of business, attachment or
     execution, changes in the constitution of the Borrower and Material and
     Adverse Effect in the Financial condition or operation of the Borrower.

8.4.2 AUTHORISATIONS

The Borrower shall promptly:

(a)  obtain, comply with and do all that is necessary to maintain in full force
     and effect; and

(b)  supply certified copies to the Agent and Security Trustee of,

any Authorisation required to enable it to perform its obligations under the
Finance Documents and to ensure the legality, validity, enforceability or
admissibility in evidence in its jurisdiction of incorporation of any Finance
Document.

8.4.3 COMPLIANCE WITH LAWS

The Borrower shall comply in all respects with all laws to which it may be
subject, if failure so to comply would materially impair its ability to perform
its obligations under the Finance Documents.

8.4.4 INSURANCE.

(a) The Borrower has obtained and shall always maintain insurances on all its
Assets on replacement value basis or on such other basis and against fire,
earthquake,

                                       33

<PAGE>

riots, civil commotion and such other risks as may be reasonably prescribed by
the Agent and Security Trustee from time to time in consultation with the
Lenders. The insurance policies in this regard shall be either assigned to the
Agent and Security Trustee in trust for and for the benefit of the Finance
Parties or the Agent and Security Trustee and the Finance Parties may be
notified therein as loss payees with a suitable mortgage and hypothecation
clause as may be required by the Agent and Security Trustee.

(b) The insurance policies shall, if so required by the Agent and Security
Trustee be deposited with the Agent and Security Trustee and may be made
available by the Agent and Security Trustee for inspection by the Borrower or
for lodgement of any claim by the Borrower.

(c) The Borrower shall take forthwith insurance against such risk and on such of
the assets as and when they are brought into existence.

(d) The interest of each Secured Creditor in the proceeds of any claim under an
insurance policy shall rank pari passu inter-se.

8.5  NEGATIVE COVENANTS

8.5.1 MAINTENANCE OF SECURITY COVER

The Borrower shall not borrow and / or create or permit to subsist any Security
Interest over any of the Secured Assets if as a result of such borrowing or
creation of Security Interest, the Borrower is not in a position to maintain the
security cover of 1.33 times of the aggregate value of the Secured Assets over
the Indebtedness including the Future Indebtedness proposed to be incurred by
the Borrower.

8.5.2 DISPOSALS

(a)  The Borrower shall not and shall ensure that none of its Subsidiaries shall
     enter into any transaction or a series of transaction (whether related or
     not) and whether voluntary or involuntary to sell, lease, transfer or
     otherwise dispose off any of the assets of the value of which exceeds Rs.
     10 crores (Rupees ten crores) in a single transaction.

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<PAGE>

(b) Paragraph (a) above does not apply to any sale, lease, transfer or other
    disposal:

     (i)  made in the ordinary course of trading of the disposing entity;

     (ii) of assets in exchange for other assets comparable or superior as to
          type, value and quality and for a similar purpose; or

     (iii) where the higher of the market value or consideration receivable
          (when aggregated with the higher of the market value or consideration
          receivable for any other sale, lease, transfer or other disposal,
          other than any permitted under paragraphs (i) to (ii) above) does not
          exceed Rs. 10 crores (Rupees ten crores) (or its equivalent in another
          currency or currencies) in any financial year.

8.5.3 MERGER

Without the approval of the Agent and Security Trustee the Borrower shall not
and shall also ensure that no Subsidiary of the Borrower, enters into any
amalgamation, demerger, merger or corporate reconstruction.

8.5.4 CHANGE OF BUSINESS

The Borrower shall procure that no substantial change is made to the general
nature of the business of the Borrower or the Sterlite Group from that carried
on at the date of this Agreement without prior written approval of Majority
Lenders.

8.6  GENERAL UNDERTAKINGS

The covenants and undertakings in this Clause 8 shall remain in force from the
date of this Agreement for so long as any amount is outstanding under the
Finance Documents or any Commitment is in force.

8.7  COVENANT TESTING

All covenants and terms and conditions unless otherwise specified, will be
tested annually on audited statement of accounts.

                                       35

<PAGE>

8.8  GRANT OF WAIVER

Any waiver in the observance or in the compliance of any of the covenants or any
change therein shall be granted to the Borrower only with the consent of the
Majority Lenders.

                                    CLAUSE 9

                                EVENTS OF DEFAULT

Each of the events or circumstances set out in Clause 9 below is an Event of
Default.

9.1  NON-PAYMENT

The Borrower does not pay on the due date any amount payable pursuant to a
Finance Document at the place at and in the currency in which it is expressed to
be payable unless:

(a)  its failure to pay is caused by administrative or technical error; and

(b)  payment is made within 3 (three) Business Days of its due date.

9.2  BREACH OF COVENANTS/UNDERTAKINGS

(i)  Any of the requirements set out in Clause 8.2 (Financial Statements and
     Compliance certificates) is not complied with or the Borrower fails to
     carry out its obligations, as provided therein;

(ii) The Borrower fails to satisfy and/or comply with any of the Financial
     Covenants set out in Clause 8.3 (Financial Covenants) is not satisfied;

(iii) Any of the covenants set out in Clause 8.4 (Other Covenants) is not
     satisfied, carried out or complied with as provided therein; or

(iv) There is a breach of any of the Negative Covenants set out in Clause 8.5
     (Negative Covenants).

(v)  If the Borrower fails to create a first pari passu charge of the existing
     hypothecation of all the Other Properties as provided in Clause 7 or fails
     to create a first pari passu mortgage of all the Immovable Properties as
     provided in Clause 7 within the time therein specified notwithstanding the
     Borrower's liability to pay Additional Interest as provided in Clause
     5.2.3.

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<PAGE>

(vi) The Borrower fails to take or maintain insurance of its Properties as
     provided in Clause 8.4.4 set out hereinbefore.

9.3  OTHER OBLIGATIONS

The Borrower does not comply with any provision of the Finance Documents (other
than those referred to in Clause 9.1 (Non-payment) [and Clause 8.3 (Financial
covenants)]).

Provided that no Event of Default under paragraph (a) above in relation to
Clause 9 will be deemed to have occurred, if the failure to comply is capable of
remedy and is remedied within:

(i)  in relation to Clause 9.1 (Non-payment) 7 Business Days; or

(ii) in relation to any other Event of Default three months,

of the Agent and Security Trustee giving notice to the Borrower or the Borrower
becoming aware of the failure to comply.

9.4  MISREPRESENTATION

Any representation or statement made or deemed to be made by the Borrower in
Clause 8.1 or in any other Finance Document or any other document delivered by
or on behalf of the Borrower under or in connection with any Finance Document is
or proves to have been incorrect or misleading in any material respect when made
or deemed to be made.

9.5  CROSS DEFAULT

(a)  Any Financial Indebtedness of the Borrower or any of its Subsidiaries is
     not paid when due nor within any originally applicable grace period.

(b)  Any Financial Indebtedness of the Borrower or any of its subsidiaries is
     declared to be or otherwise becomes due and payable prior to its specified
     maturity as a result of an event of default (however described).

(c)  Any commitment for any Financial Indebtedness of the Borrower or any of its
     Subsidiaries is cancelled or suspended by a creditor of as a result of an
     event of default (however described).

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<PAGE>

(d)  Any creditor of the Borrower or any of its Subsidiaries becomes entitled to
     declare any Financial Indebtedness of the Borrower or any of its
     Subsidiaries due and payable prior to its specified maturity as a result of
     an Event of Default (however described).

(e)  No Event of Default will be deemed to have occurred under this clause 9 if
     the aggregate amount of Financial Indebtedness falling within paragraphs
     (a) to (d) above is less than Rs 50 Crores (or its equivalent in any other
     currency or currencies).

9.6  INSOLVENCY

(a)  The Borrower or any of its Subsidiaries is or is presumed or deemed to be
     unable or admits inability to pay its debts as they fall due, suspends
     making payments on any of its debts or, by reason of actual or anticipated
     financial difficulties, commences negotiations with one or more of its
     creditors with a view to rescheduling any of its indebtedness.

(b)  The value of the assets of the Borrower or its Subsidiaries is less than
     its liabilities (taking into account contingent and prospective
     liabilities).

(c)  A moratorium is declared in respect of any indebtedness of the Borrower or
     its Subsidiaries.

9.7  INSOLVENCY PROCEEDINGS

Any corporate action, legal proceedings or other procedure or step is taken in
relation to:

(a)  the suspension of payments, a moratorium of any indebtedness, winding-up,
     dissolution, administration, provisional supervision or reorganisation (by
     way of voluntary arrangement, scheme of arrangement or otherwise) of the
     Borrower or its Subsidiaries other than a solvent liquidation or
     reorganisation of the Borrower or its Subsidiaries;

(b)  a composition, assignment or arrangement with any creditor of the Borrower
     or its Subsidiaries;

(c)  the appointment of a liquidator (other than in respect of a solvent
     liquidation of the Borrower or its Subsidiaries, receiver, administrator,
     administrative

                                       38

<PAGE>

     receiver, compulsory manager, provisional supervisor or other similar
     officer in respect of any of the Borrower or its Subsidiaries or any of its
     assets; or

(d)  enforcement of any Security Interest over any assets of the Borrower or its
     Subsidiaries,

or any analogous procedure or step is taken in any jurisdiction.

9.8  CREDITORS' PROCESS

Any expropriation, attachment, sequestration, distress or execution affects any
asset or assets of the Borrower or its Subsidiaries having an aggregate value of
Rupees one crore and is not discharged within 30 (thirty) days.

9.9  OWNERSHIP OF THE BORROWER

The Borrower is not or ceases to be an Affiliate of the Sterlite Group.

9.10 UNLAWFULNESS

It is or becomes unlawful for the Borrower to perform any of its obligations
under the Finance Documents.

9.11 REPUDIATION

The Borrower repudiates a Finance Document or evidences an intention to
repudiate a Finance Document.

9.12. MATERIAL ADVERSE CHANGE

Any event or circumstance occurs which in the opinion of the Majority Lenders
might have a Material Adverse Effect.

9.13 ACCELERATION

On and at any time after the occurrence of an Event of Default [which is
continuing] the Agent and Security Trustee shall if so directed by the Majority
Lenders, by notice to the Borrower:

(a)  cancel the Total Commitments whereupon they shall immediately be cancelled;

                                       39

<PAGE>

(b)  declare that all or part of the Loan, together with accrued interest, and
     all other amounts accrued or outstanding under the Finance Documents be
     immediately due and payable, whereupon they shall become immediately due
     and payable; and/or

(c)  declare that all or part of the Loan be payable on demand, whereupon they
     shall immediately become payable on demand by the Agent and Security
     Trustee on the instructions of the Majority Lenders.

                                    CLAUSE 10

                               CHANGES TO PARTIES

10.  CHANGES TO THE LENDERS

10.1 ASSIGNMENTS AND TRANSFERS BY THE LENDERS

     Subject to this Clause 10, a Lender (the "EXISTING LENDER") may:

(a)  assign any of its rights; or

(b)  transfer by novation any of its rights and obligations,

to another bank or financial institution or to a trust, fund or other entity
which is regularly engaged in or established for the purpose of making,
purchasing or investing in loans, securities or other financial assets (the "NEW
LENDER").

10.1.1 CONDITIONS OF ASSIGNMENT OR TRANSFER

(a)  The consent of the Borrower is required for a transfer by a Lender of any
     of its obligations under the Finance Documents in respect of its Commitment
     unless the transfer is to another Lender or an Affiliate of a Lender.

(b)  The consent of the Borrower to a transfer must not be unreasonably withheld
     or delayed. The Borrower will be deemed to have given its consent seven
     Business Days after the Lender has requested it unless consent is expressly
     refused by the Borrower within that time for reasons to be recorded in
     writing.

(c)  Transfer will only be effective on receipt by the Agent and Security
     Trustee of written confirmation from the New Lender (in form and substance
     satisfactory

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<PAGE>

     to the Agent and Security Trustee) that the New Lender will assume the same
     obligations to the other Finance Parties as it would have been under if it
     was an Original Lender.

(d)  A transfer will only be effective if the procedure set out in Clause 10.1.3
     (Procedure for transfer) is complied with.

(e)  If:

(i)  A Lender assigns or transfers any of its rights or obligations under the
     Finance Documents or changes its Facility Office; and

(ii) as a result of circumstances existing at the date of the assignment,
     transfer or change occurs, the Borrower becomes obliged to make extra
     payment to the New Lender or Lender acting through its new Facility Office.

then the New Lender or Lender acting through its new Facility Office is only
entitled to receive payment under those Clauses to the same extent as the
Existing Lender or Lender acting through its previous Facility Office would have
been if the assignment, transfer or change had not occurred.

10.1.2 LIMITATION OF RESPONSIBILITY OF EXISTING LENDERS.

(a)  Unless expressly agreed to the contrary, an Existing Lender shall not make
     any representation or warranty and assumes any responsibility to a New
     Lender for:

     (i)  the legality, validity, effectiveness, adequacy or enforceability of
          the Finance Documents or any other documents;

     (ii) the financial condition of the Borrower;

     (iii) the performance and observance by the Borrower of its obligations
          under the Finance Documents or any other documents; or

     (iv) the accuracy of any statements (whether written or oral) made in or in
          connection with any Finace Document or any other document,

     and any representations or warranties implied by law are excluded.

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<PAGE>

(b)  Each New Lender shall be deemed to confirm to the Existing Lender and the
     other Finance Parties that it:

     (i)  has made (and shall continue to make) its own independent
          investigation and assessment of the financial condition and affairs of
          the Borrower and its related entities in connection with its
          participation in this Agreement and has not relied exclusively on any
          information provided to it by the Existing Lender in connection with
          any Finance Document; and

     (ii) will continue to make its own independent appraisal of the
          creditworthiness of the Borrower and its related entities whilst any
          amount is or may be outstanding under the Finance Documents or any
          Commitment is in force.

(c)  Nothing in any Finance Document obliges an Existing Lender to:

     (i)  accept a re-transfer from a New Lender of any of the rights and
          obligations assigned or transferred under this Clause 10.1.2; or

     (ii) support any losses directly or indirectly incurred by the New Lender
          by reason of the non-performance by the Borrower of its obligations
          under the Finance Documents or otherwise.

10.1.3 PROCEDURE FOR TRANSFER

(a)  Subject to the conditions set out in Clause 10.1.1 (Conditions of
     assignment or transfer) a transfer is effected in accordance with paragraph
     (b) below when the Agent and Security Trustee executes an otherwise duly
     completed Transfer Certificate delivered to it by the Existing Lender and
     the New Lender. The Agent and Security Trustee shall, as soon as reasonably
     practicable after receipt by it of a duly completed Transfer Certificate
     appearing on its face to comply with the terms of this Agreement and
     delivered in accordance with the terms of this Agreement, execute that
     Transfer Certificate.

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(b)  On the Transfer Date:

     (i)  to the extent that in the Transfer Certificate, the Existing Lender
          seeks to transfer by novation its rights and obligations under the
          Finance Documents the Borrower and the Existing Lender shall be
          released from further obligations towards one another under the
          Finance Documents and their respective rights against one another
          shall be cancelled (being the "DISCHARGED RIGHTS AND OBLIGATIONS");

     (ii) the Borrower and the New Lender shall assume obligations towards one
          another and/or acquire rights against one another which differ from
          the Discharged Rights and Obligations only insofar as the Borrower and
          the New Lender have assumed and/or acquired the same in place of the
          Borrower and the Existing Lender;

     (iii) the Agent and Security Trustee, the Arranger, the New Lender and
          other Lenders shall acquire the same rights and assume the same
          obligations between themselves as they would have acquired and assumed
          had the New Lender been an Original Lender with the rights and/or
          obligations acquired or assumed by it as a result of the transfer and
          to that extent the Agent and Security Trustee, the Arranger and the
          Existing Lender shall each be released from further obligations to
          each other under this Agreement; and

     (iv) the New Lender shall become a Party as a "Lender".

10.1.4 DISCLOSURE OF INFORMATION

Any Lender may disclose to any of its Affiliates and any other person:

(a)  to (or through) whom that Lender assigns or transfers (or may potentially
     assign or transfer) all or any of its rights and obligations under this
     Agreement;

(b)  with (or through) whom that Lender enters into (or may potentially enter
     into) any sub-participation in relation to, or any other transaction under
     which payments are to be made by reference to, this Agreement or the
     Borrower; or

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(c)  to whom, and to the extent that, information is required to be disclosed by
     any applicable law or regulation,

any information about the Borrower, the Sterlite Group and the Finance Documents
as that Lender shall consider appropriate [if, in relation to paragraphs (a) and
(b) above, the person to whom the information is to be given has entered into a
Confidentiality Undertaking.

10.1.5 DISCLOSURE OF DEFAULT

Provided that, the Borrower hereby unconditionally and irrevocably gives its
consent to and authorises and acknowledges that each of the Finance Parties has
unqualified right to disclose all or any data relating to the Borrower, the
Facility, obligations assumed/to be assumed by the Borrower in relation thereto
and default if any committed by the Borrower in discharge thereof, as a Finance
Party deems appropriate and necessary to disclose and furnish to the Reserve
Bank of India ("RBI"), Credit Information Bureau (India) Limited ("CIBIL"), any
other bank, financial institution or non-banking finance company, and to any
other agency so authorised in this behalf by the RBI, and to publish the name of
the Borrower and its directors in a newspaper or other media or in private
correspondence as may be considered appropriate by the Finance Party and that
the RBI, CIBIL, banks, financial institutions, CIBIL or any other agency as
aforesaid may use, process such information and data disclosed by the Finance
Parties in the manner as deemed fit by any of them and any of them may furnish
for consideration, the processed information and data or products thereof
prepared by them, to any banks or financial institutions and other credit
grantors or registered users.

                                    CLAUSE 11

                               THE FINANCE PARTIES

11.  ROLE OF THE AGENT AND SECURITY TRUSTEE AND THE ARRANGER

11.1.1 APPOINTMENT OF THE AGENT AND SECURITY TRUSTEE

(a)  Each of the other Finance Parties appoints the Agent and Security Trustee
     to act as its agent under and in connection with the Finance Documents.

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(b)  Each of the other Finance Parties authorises the Agent and Security Trustee
     to exercise the rights, powers, authorities and discretions specifically
     given to the Agent and Security Trustee under or in connection with the
     Finance Documents together with any other incidental rights, powers,
     authorities and discretions.

(c)  The Agent and Security Trustee agrees and accepts its appointment to act as
     such for and on behalf and for the benefit of the Lenders. The Borrower
     shall be required to pay the Agent and Security Trustee fees in the amount
     and at the time as negotiated and agreed between the Agent and Security
     Trustee and the Borrower.

11.1.2 DUTIES OF THE AGENT AND SECURITY TRUSTEE

(a)  The Agent and Security Trustee shall promptly forward to a Party the
     original or a copy of any document, which is delivered to the Agent and
     Security Trustee for that Party by any other Party.

(b)  Except where a Finance Document specifically provides otherwise, the Agent
     and Security Trustee is not obliged to review or check the adequacy,
     accuracy or completeness of any document it forwards to another Party.

(c)  If the Agent and Security Trustee receives notice from a Party referring to
     this Agreement, describing a Default and stating that the circumstance
     described is a Default, it shall promptly notify the Finance Parties.

(d)  If the Agent and Security Trustee is aware of the non-payment of any
     principal, interest, commitment fee or other fee payable to a Finance Party
     (other than the Agent and Security Trustee or the Arranger) under this
     Agreement it shall promptly notify the other Finance Parties.

(e)  The Agent and Security Trustee's duties under the Finance Documents are
     solely mechanical and administrative in nature. The Agent and Security
     Trustee shall have no other duties save as expressly provided for in the
     Finance Documents.

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11.1.3 ROLE OF THE ARRANGER

Except as specifically provided in the Finance Documents, the Arranger has no
obligations of any kind to any other Party under or in connection with any
Finance Document.

11.1.4 NO FIDUCIARY DUTIES

(a)  Nothing in this Agreement constitutes the Agent and Security Trustee or the
     Arranger as a trustee or fiduciary of any other person.

(b)  Neither the Agent and Security Trustee nor the Arranger shall be bound to
     account to any Lender for any sum or the profit element of any sum received
     by it for its own account.

11.1.5 BUSINESS WITH THE STERLITE GROUP

The Agent and Security Trustee and the Arranger may accept deposits from, lend
money to and generally engage in any kind of banking or other business with any
Member of Sterlite Group.

11.1.6 RIGHTS AND DISCRETIONS OF THE AGENT AND SECURITY TRUSTEE

(a)  The Agent and Security Trustee may rely on:

     (i)  any representation, notice or document, resolution, certificate,
          report, request, consent, order or approval furnished by the Borrower
          and/or the Lender/s and believed by it to be genuine, correct and
          appropriately authorised and shall have no duty to verify any
          signature on any document; and

     (ii) any statement purportedly made by a director, authorised person or
          employee of the Borrower regarding any matters which may reasonably be
          assumed to be within his knowledge or within his power to verify.

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(b)  The Agent and Security Trustee may assume (unless it has received notice to
     the contrary in its capacity as agent for the Lenders) that:

     (i)  no Default has occurred (unless it has actual knowledge of a Default
          arising) under Clause 9.1 (Non-payment));

     (ii) any right, power, authority or discretion vested in any Party or the
          Majority Lenders has not been exercised; and

     (iii) any notice or request made (other than a Drawdown Request) is made on
          behalf of and with the consent and knowledge of the Borrower.

(c)  The Agent and Security Trustee may engage, pay for and rely on the advice
     or services of any lawyers, accountants, surveyors or other experts under
     intimation to the Borrower and shall be fully protected in so relying upon
     the advice of professionals and/or experts as may be engaged in pursuance
     of this Agreement.

(d)  The Agent and Security Trustee may act in relation to the Finance Documents
     through its personnel and agents.

(e)  The Agent and Security Trustee may disclose to any other Party any
     information it reasonably believes it has received as agent under this
     Agreement.

(f)  Notwithstanding any other provision of any Finance Document to the
     contrary, neither the Agent and Security Trustee nor the Arranger is
     obliged to do or omit to do anything if it would or might in its reasonable
     opinion constitute a breach of any law or a breach of a fiduciary duty or
     duty of confidentiality.

11.1.7 MAJORITY LENDERS' INSTRUCTIONS.

(a)  Unless a contrary indication appears in a Finance Document, the Agent and
     Security Trustee shall (i) exercise any right, power, authority or
     discretion vested in it as Agent and Security Trustee in accordance with
     any instructions given to it by the Majority Lenders (or, if so instructed
     by the Majority Lenders, refrain from exercising any right, power,
     authority or discretion vested in it as Agent and Security Trustee) and
     (ii) not be liable for any act (or

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<PAGE>

     omission) if it acts (or refrains from taking any action) in accordance
     with an instruction of the Majority Lenders.

(b)  The Agent and Security Trustee may assume that all instructions received by
     it from the Majority Lenders are consistent with this Agreement and the
     other Finance Documents.

(c)  Unless a contrary indication appears in a Finance Document, any
     instructions given by the Majority Lenders will be binding on all the
     Finance Parties.

(d)  The Agent and Security Trustee may refrain from acting in accordance with
     the instructions of the Majority Lenders (or, if appropriate, the Lenders)
     or under paragraph (d) below until it has received such security as it may
     require for any cost, loss or liability (together with any associated
     Indirect Tax) which it may incur in complying with the instructions.

(e)  In the absence of instructions from the Majority Lenders, (or, if
     appropriate, the Lenders) the Agent and Security Trustee may act (or
     refrain from taking action) as it considers to be in the best interest of
     the Lenders.

(f)  The Agent and Security Trustee is not authorised to act on behalf of a
     Lender (without first obtaining that Lender's consent) in any legal or
     arbitration proceedings relating to any Finance Document.

11.1.8 RESPONSIBILITY FOR DOCUMENTATION

Neither the Agent and Security Trustee nor the Arranger:

(a)  is responsible for the adequacy, accuracy and/or completeness of any
     information (whether oral or written) supplied by the Agent and Security
     Trustee, the Arranger, the Borrower or any other person given in or in
     connection with any Finance Document; or

(b)  is responsible for the legality, validity, effectiveness, adequacy or
     enforceability of any Finance Document or any other agreement, arrangement
     or document entered into, made or executed in anticipation of or in
     connection with any Finance Document.

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<PAGE>

(c)  is responsible for the validity, effectiveness, adequacy and completeness
     of the representations and warranties made by the Borrower and Sterlite.

11.1.9 EXCLUSION OF LIABILITY

(a)  Without limiting paragraph (b) below, the Agent and Security Trustee will
     not be liable for any action taken by it or omitting to take action under
     or in connection with any Finance Document, unless directly caused by its
     gross negligence or wilful misconduct.

(b)  No Party (other than the Agent and Security Trustee) may take any
     proceedings against any officer, employee or agent of the Agent and
     Security Trustee in respect of any claim it might have against the Agent
     and Security Trustee or in respect of any act or omission of any kind by
     that officer, employee or agent in relation to any Finance Document and any
     officer, employee or agent of the Agent and Security Trustee may rely on
     this Clause unless caused by their gross negligence or wilful default.

(c)  The Agent and Security Trustee will not be liable for any delay (or any
     related consequences) in crediting an account with an amount required under
     the Finance Documents to be paid by the Agent and Security Trustee if the
     Agent and Security Trustee has taken all necessary steps as soon as
     reasonably practicable to comply with the regulations or operating
     procedures of any recognised clearing or settlement system used by the
     Agent and Security Trustee for that purpose.

11.1.10 LENDERS' INDEMNITY TO THE AGENT AND SECURITY TRUSTEE

Each Lender shall (in proportion to its share of the Total Commitments or, if
the Total Commitments are then zero, to its share of the Total Commitments
immediately prior to their reduction to zero) indemnify the Agent and Security
Trustee, within seven Business Days of demand, against any cost, loss or
liability incurred by the Agent and Security Trustee (otherwise than by reason
of the Agent and Security Trustee's gross negligence or wilful misconduct) in
acting as Agent and Security Trustee under the Finance Documents (unless if the
Agent and Security Trustee fails to be reimbursed by the Borrower pursuant to a
Finance Document).

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11.1.11 RESIGNATION OF THE AGENT AND SECURITY TRUSTEE

(a)  The Agent and Security Trustee may resign and appoint one of its Affiliates
     acting through an office in Mumbai as successor by giving notice to the
     other Finance Parties and the Borrower.

(b)  Alternatively the Agent and Security Trustee may resign by giving notice to
     the other Finance Parties and the Borrower, in which case the Majority
     Lenders (after consultation with the Borrower) may appoint a successor
     Agent and Security Trustee.

(c)  If the Majority Lenders have not appointed a successor Agent and Security
     Trustee in accordance with paragraph (b) above within 30 days after notice
     of resignation was given, the Agent and Security Trustee (after
     consultation with the Borrower) may appoint a successor Agent and Security
     Trustee [(acting through an office in Mumbai

(d)  The retiring Agent and Security Trustee shall make available to the
     successor Agent and Security Trustee such documents and records and provide
     such assistance as the successor Agent and Security Trustee may reasonably
     request for the purposes of performing its functions as Agent and Security
     Trustee under the Finance Documents.

(e)  The Agent and Security Trustee's resignation notice shall only take effect
     upon the appointment of a successor.

(f)  Upon the appointment of a successor, the retiring Agent and Security
     Trustee shall be discharged from any further obligation in respect of the
     Finance Documents but shall remain entitled to the benefit of this Clause
     11.1.11. Its successor and each of the other Parties shall have the same
     rights and obligations amongst themselves as they would have had if such
     successor had been an original Party.

(g)  After consultation with the Borrower, the Majority Lenders may, by notice
     to the Agent and Security Trustee, require it to resign in accordance with
     paragraph (b) above. In this event, the Agent and Security Trustee shall
     resign in accordance with paragraph (b) above.

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11.1.12 CONFIDENTIALITY

(a)  In acting as agent for the Finance Parties, the Agent and Security Trustee
     shall be regarded as acting through its agency division which shall be
     treated as a separate entity from any other of its divisions or
     departments.

(b)  If information is received by another division or department of the Agent
     and Security Trustee, it may be treated as confidential to that division or
     department and the Agent and Security Trustee shall not be deemed to have
     notice of it.

11.1.13 RELATIONSHIP WITH THE LENDERS

The Agent and Security Trustee may treat each Lender as a Lender, entitled to
payments under this Agreement and acting through its Facility Office unless it
has received not less than five Business Days prior notice from that Lender to
the contrary in accordance with the terms of this Agreement.

11.1.14 CREDIT APPRAISAL BY THE LENDERS

Without affecting the responsibility of the Borrower for information supplied by
it or on its behalf in connection with any Finance Document, each Lender
confirms to the Agent and Security Trustee and the Arranger that it has been,
and will continue to be, solely responsible for making its own independent
appraisal and investigation of all risks arising under or in connection with any
Finance Document including but not limited to:

(a)  the financial condition, status and nature of each Member of Sterlite
     Group;

(b)  the legality, validity, effectiveness, adequacy or enforceability of any
     Finance Document and any other agreement, arrangement or document entered
     into, made or executed in anticipation of, under or in connection with any
     Finance Document;

(c)  whether that Lender has recourse, and the nature and extent of that
     recourse, against any Party or any of its respective assets under or in
     connection with any Finance Document, the transactions contemplated by the
     Finance Documents or any other agreement, arrangement or document entered
     into,

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<PAGE>

     made or executed in anticipation of, under or in connection with any
     Finance Document; and

(d)  the adequacy, accuracy and/or completeness of the information provided by
     the Agent and Security Trustee, any Party or by any other person under or
     in connection with any Finance Document, the transactions contemplated by
     the Finance Documents or any other agreement, arrangement or document
     entered into, made or executed in anticipation of, under or in connection
     with any Finance Document.

11.1.15 DEDUCTION FROM AMOUNTS PAYABLE BY THE AGENT AND SECURITY TRUSTEE

If any Party owes an amount to the Agent and Security Trustee under the Finance
Documents the Agent and Security Trustee may, after giving notice to that Party,
deduct an amount not exceeding that amount from any payment to that Party which
the Agent and Security Trustee would otherwise be obliged to make under the
Finance Documents and apply the amount deducted in or towards satisfaction of
the amount owed. For the purposes of the Finance Documents that Party shall be
regarded as having received any amount so deducted.

11.1.16 AGENT SECURITY TRUSTEE'S MANAGEMENT TIME

Any amount payable to the Agent and Security Trustee under Clause 6.6 (Costs and
expenses) and Clause 11.1.10 (Lenders' indemnity to the Agent and Security
Trustee) shall include the cost of utilising the Agent and Security Trustee's
management time or other resources and will be calculated on the basis of such
reasonable daily or hourly rates as the Agent and Security Trustee may notify to
the Borrower and the Lenders and shall be paid by the Borrower to the Agent and
Security Trustee forthwith on demand of the Agent and Security Trustee.

11.2 CONDUCT OF BUSINESS BY THE FINANCE PARTIES

No provision of this Agreement will:

(a)  interfere with the right of any Finance Party to arrange its affairs (tax
     or otherwise) in whatever manner it thinks fit;

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(b)  oblige any Finance Party to investigate or claim any credit, relief,
     remission or repayment available to it or the extent, order and manner of
     any claim; or

(c)  oblige any Finance Party to disclose any information relating to its
     affairs (tax or otherwise) or any computations in respect of Tax.

11.3 SHARING AMONG THE FINANCE PARTIES

11.3.1 PAYMENTS TO FINANCE PARTIES

If a Finance Party (a "RECOVERING FINANCE PARTY") receives or recovers any
amount from the Borrower other than in accordance with Clause 12.1 (Payment
Mechanics) and applies that amount to a payment due under the Finance Documents
then:

(a)  the Recovering Finance Party shall, within three Business Days, notify
     details of the receipt or recovery, to the Agent and Security Trustee;

(b)  the Agent and Security Trustee shall determine whether the receipt or
     recovery is in excess of the amount the Recovering Finance Party would have
     been paid had the receipt or recovery been received or made by the Agent
     and Security Trustee and distributed in accordance with Clause 12.1
     (Payment mechanics), without taking account of any Tax which would be
     imposed on the Agent and Security Trustee in relation to the receipt,
     recovery or distribution; and

(c)  the Recovering Finance Party shall, within three Business Days of demand by
     the Agent and Security Trustee, pay to the Agent and Security Trustee an
     amount (the "SHARING PAYMENT") equal to such receipt or recovery less any
     amount which the Agent and Security Trustee determines may be retained by
     the Recovering Finance Party as its share of any payment to be made, in
     accordance with Clause 12.1.5 (Partial payments).

11.3.2 REDISTRIBUTION OF PAYMENTS

The Agent and Security Trustee shall treat the Sharing Payment as if it had been
paid by the Borrower and distribute it between the Finance Parties (other than
the Recovering Finance Party) in accordance with Clause 12.1.5 (Partial
payments).

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11.3.3 RECOVERING FINANCE PARTY'S RIGHTS

(a)  On a distribution by the Agent and Security Trustee under Clause 11.3.2
     (Redistribution of payments), the Recovering Finance Party will be
     subrogated to the rights of the Finance Parties which have shared in the
     redistribution.

(b)  If and to the extent that the Recovering Finance Party is not able to rely
     on its rights under paragraph (a) above, the Borrower shall be liable to
     the Recovering Finance Party for a debt equal to the Sharing Payment which
     is immediately due and payable.

11.3.4 REVERSAL OF REDISTRIBUTION

If any part of the Sharing Payment received or recovered by a Recovering Finance
Party becomes repayable and is repaid by that Recovering Finance Party, then:

(a)  each Finance Party which has received a share of the relevant Sharing
     Payment pursuant to Clause 11.3.2 (Redistribution of payments) shall, upon
     request of the Agent and Security Trustee, pay to the Agent and Security
     Trustee for account of that Recovering Finance Party an amount equal to the
     appropriate part of its share of the Sharing Payment (together with an
     amount as is necessary to reimburse that Recovering Finance Party for its
     proportion of any interest on the Sharing Payment which that Recovering
     Finance Party is required to pay); and

(b)  that Recovering Finance Party's rights of subrogation in respect of any
     reimbursement shall be cancelled and the Borrower will be liable to the
     reimbursing Finance Party for the amount so reimbursed

11.3.5 EXCEPTIONS

(a)  This Clause 11.3.5 shall not apply to the extent that the Recovering
     Finance Party would not, after making any payment pursuant to this Clause,
     have a valid and enforceable claim against the Borrower

(b)  A Recovering Finance Party is not obliged to share with any other Finance
     Party any amount which the Recovering Finance Party has received or
     recovered as a result of taking legal or arbitration proceedings, if:

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     (i)  it notified that other Finance Party of the legal or arbitration
          proceedings; and

     (ii) that other Finance Party had an opportunity to participate in those
          legal or arbitration proceedings but did not do so as soon as
          reasonably practicable having received notice and did not take
          separate legal or arbitration proceedings.

11.3.6 CHANGE OF FACILITY OFFICE

A Finance Party shall be entitled to change its Lending Office or any other
office, through which it will be carrying out the purpose of this Agreement and
shall upon such change of office advise the Borrower and other parties about the
change of the office.

                                    CLAUSE 12

                                 ADMINISTRATION

12.1 PAYMENT MECHANICS

12.1.1 PAYMENTS TO THE AGENT AND SECURITY TRUSTEE

(a)  On each date on which the Borrower or a Lender is required to make a
     payment under a Finance Document, the Borrower or Lender shall make the
     same available to the Agent and Security Trustee (unless a contrary
     indication appears in a Finance Document) for value on the due date at the
     time and in such funds specified by the Agent and Security Trustee as being
     customary at the time for settlement of transactions in the relevant
     currency in the place of payment.

(b)  Payment shall be made to such account in the city of Mumbai with such bank
     as the Agent and Security Trustee specifies.

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12.1.2 DISTRIBUTIONS BY THE AGENT AND SECURITY TRUSTEE

Each payment received by the Agent and Security Trustee under the Finance
Documents for another Party shall, subject to Clause 12.1.3 (Distributions to
the Borrower) and Clause 12.1.4 (Clawback) be made available by the Agent and
Security Trustee as soon as practicable after receipt to the Party entitled to
receive payment in accordance with this Agreement (in the case of a Lender, for
the account of its Facility Office), to such account as that Party may notify to
the Agent and Security Trustee by not less than five Business Days' notice with
a bank in the city of Mumbai.

12.1.3 DISTRIBUTIONS TO THE BORROWER

The Agent and Security Trustee may (with the consent of the Borrower or in
accordance with Clause 12.2 (Set-off)) apply any amount received by it for the
Borrower in or towards payment (on the date and in the currency and funds of
receipt) of any amount due from the Borrower under the Finance Documents or in
or towards purchase of any amount of any currency to be so applied.

12.1.4 CLAWBACK

(a)  Where a sum is to be paid to the Agent and Security Trustee under the
     Finance Documents for another Party, the Agent and Security Trustee is not
     obliged to pay that sum to that other Party (or to enter into or perform
     any related exchange contract) until it has been able to establish to its
     satisfaction that it has actually received that sum.

(b)  If the Agent and Security Trustee pays an amount to another Party and it
     proves to be the case that the Agent and Security Trustee had not actually
     received that amount, then the Party to whom that amount (or the proceeds
     of any related exchange contract) was paid by the Agent and Security
     Trustee shall on demand refund the same to the Agent and Security Trustee
     together with interest on that amount from the date of payment to the date
     of receipt by the Agent and Security Trustee, calculated by the Agent and
     Security Trustee to reflect its cost of funds.

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12.1.5 PARTIAL PAYMENTS

(a)  If the Agent and Security Trustee receives a payment that is insufficient
     to discharge all the amounts then due and payable by the Borrower under the
     Finance Documents, the Agent and Security Trustee shall apply that payment
     towards the obligations of the Borrower under the Finance Documents in the
     following order:

     (i)  FIRST, in or towards payment pro rata of any unpaid fees of the Agent
          and Security Trustee under the Finance Documents;

     (ii) SECONDLY, in or towards payment pro rata of any accrued interest, fee
          (other than as provided in (i) above) or commission due but unpaid
          under this Agreement;

     (iii) THIRDLY, in or towards payment pro rata of any principal due but
          unpaid under this Agreement; and

     (iv) FOURTHLY, in or towards payment pro rata of any other sum due but
          unpaid under the Finance Documents.

(b)  The Agent and Security Trustee shall, if so directed by the Majority
     Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above.

(c)  Paragraphs (a) and (b) above will override any appropriation made by the
     Borrower.

12.1.6 NO SET-OFF BY THE BORROWER

All payments to be made by the Borrower under the Finance Documents shall be
calculated and be made without (and free and clear of any deduction for) set-off
or counter claim.

12.1.7 BUSINESS DAYS

(a)  Any payment which is due to be made on a day that is not a Business Day
     shall be made on the next Business Day in the same calendar month (if there
     is one) or the preceding Business Day (if there is none).

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(b)  During any extension of the due date for payment of any principal or Unpaid
     Sum under this Agreement interest is payable on the principal or Unpaid Sum
     at the rate payable on the original due date.

12.2 SET-OFF

A Finance Party may under notification to the Agent and Security Trustee set off
any matured obligation due from the Borrower under the Finance Documents (to the
extent beneficially owned by that Finance Party) against any matured obligation
owed by that Finance Party to the Borrower, regardless of the place of payment,
booking.

12.3 NOTICES

12.3.1 COMMUNICATIONS IN WRITING

Any communication to be made under or in connection with the Finance Documents
shall be made in writing and, unless otherwise stated, may be made by fax,
letter or telex.

12.3.2 ADDRESSES

The address, fax number and telex number (and the department or officer, if any,
for whose attention the communication is to be made) of each Party for any
communication or document to be made or delivered under or in connection with
the Finance Documents is:

(a)  in the case of the Borrower, that identified with its name below;

(b)  in the case of each Lender, that notified in writing to the Agent and
     Security Trustee on or prior to the date on which it becomes a Party; and

(c)  in the case of the Agent and Security Trustee, that identified with its
     name below,

or any substitute address, fax number, telex number or department or officer as
the Party may notify to the Agent and Security Trustee (or the Agent and
Security Trustee may notify to the other Parties, if a change is made by the
Agent and Security Trustee) by not less than five Business Days' notice.

                                       58

<PAGE>

12.3.3 DELIVERY

(a)  Any communication or document made or delivered by one person to another
     under or in connection with the Finance Documents will only be effective:

     (i)  if by way of fax, when received in legible form; or

     (ii) if by way of letter, when it has been left at the relevant address or
          [five] Business Days after being deposited in the post, postage
          prepaid in an envelope addressed to it at that address; or

     (iii) if by way of telex, when despatched, but only if, at the time of
          transmission, the correct answerback appears at the start and at the
          end of the sender's copy of the notice;

     and, if a particular department or officer is specified as part of its
     address details provided under Clause 12.3.2 (Addresses), if addressed to
     that department or officer.

(b)  Any communication or document to be made or delivered to the Agent and
     Security Trustee will be effective only when actually received by the Agent
     and Security Trustee and then only if it is expressly marked for the
     attention of the department or officer identified with the Agent and
     Security Trustee's signature below (or any substitute department or officer
     as the Agent and Security Trustee shall specify for this purpose).

(c)  All notices from or to the Borrower shall be sent through the Agent and
     Security Trustee.

(d)  Any communication or document made or delivered to the Borrower in
     accordance with this Clause will be deemed to have been made or delivered
     to the Borrower.

(e)  Electronic communication.

(f)  Any communication to be made between the Agent and Security Trustee and a
     Lender under or in connection with the Finance Documents may be made by
     electronic mail or other electronic means, if the Agent and Security
     Trustee and the relevant Lender:

                                       59

<PAGE>

     (i)  agree that, unless and until notified to the contrary, this is to be
          an accepted form of communication;

     (ii) notify each other in writing of their electronic mail address and/or
          any other information required to enable the sending and receipt of
          information by that means; and

     (iii) notify each other of any change to their address or any other such
          information supplied by them.

(g)  Any electronic communication made between the Agent and Security Trustee
     and a Lender will be effective only when actually received in readable form
     and in the case of any electronic communication made by a Lender to the
     Agent and Security Trustee only if it is addressed in such a manner as the
     Agent and Security Trustee shall specify for this purpose.

12.3.4 ENGLISH LANGUAGE

(a)  Any notice given under or in connection with any Finance Document must be
     in English.

(b)  All other documents provided under or in connection with any Finance
     Document must be:

     (i)  in English; or

     (ii) if not in English, and if so required by the Agent and Security
          Trustee, accompanied by a certified English translation and, in this
          case, the English translation will prevail unless the document is a
          constitutional, statutory or other official document.

12.4 CALCULATIONS AND CERTIFICATES

12.4.1 ACCOUNTS

In any litigation or arbitration proceedings arising out of or in connection
with a Finance Document, the entries made in the accounts maintained by a
Finance Party shall be prima facie evidence of the matters to which they relate.

                                       60
<PAGE>

12.4.2 CERTIFICATES AND DETERMINATIONS

Any certification or determination by a Finance Party of a rate or amount under
any Finance Document is, in the absence of manifest error, conclusive evidence
of the matters to which it relates.

12.4.3 DAY COUNT CONVENTION

Any interest, commission or fee accruing under a Finance Document will accrue
from day to day and is calculated on the basis of the actual number of days
elapsed and a year of 365 days or, in any case where the practice in the
Relevant Interbank Market differs, in accordance with that market practice.

12.4.4 PARTIAL INVALIDITY

If, at any time, any provision of the Finance Documents is or becomes illegal,
invalid or unenforceable in any respect under any law of any jurisdiction,
neither the legality, validity or enforceability of the remaining provisions nor
the legality, validity or enforceability of such provision under the law of any
other jurisdiction will in any way be affected or impaired.

12.4.5 REMEDIES AND WAIVERS

No failure to exercise, nor any delay in exercising, on the part of any Finance
Party, any right or remedy under the Finance Documents shall operate as a
waiver, nor shall any single or partial exercise of any right or remedy prevent
any further or other exercise or the exercise of any other right or remedy. The
rights and remedies provided in this Agreement are cumulative and not exclusive
of any rights or remedies provided by law.

12.5 AMENDMENTS AND WAIVERS

12.5.1 REQUIRED CONSENTS

(a)  Subject to Clause 12.5.2 (Exceptions) any term of the Finance Documents may
     be amended or waived only with the written consent of the Majority Lenders
     and the Borrower and any such amendment or waiver will be binding on all
     Parties.

(b)  The Agent and Security Trustee may effect, on behalf of any Finance Party,
     any amendment or waiver permitted by this Clause.

                                       61

<PAGE>

12.5.2 EXCEPTIONS

(a)  An amendment or waiver that has the effect of changing or which relates to:

     (i)  an extension to the date of payment of any amount under the Finance
          Documents;

     (ii) an increase in or an extension of any Commitment;

     (iii) any provision which expressly requires the consent of all the
          Lenders; or

     (iv) Clause 2.2 (Finance Parties rights and obligations), Clause 10
          (Changes to the Lenders) or this Clause 12.5.2; and

     (v)  Definition of "Majority Lenders"

     shall not be made without the prior written consent of all the Lenders.

(b)  An amendment or waiver which relates to the rights or obligations of the
     Agent and Security Trustee or the Arranger may not be effected without the
     consent of the Agent and Security Trustee or the Arranger.

12.6 COUNTERPARTS

Each Finance Document may be executed in any number of counterparts, and this
has the same effect as if the signatures on the counterparts were on a single
copy of the Finance Document.

12.7 JURISDICTION

This Agreement shall be governed by and construed in accordance with the laws of
India. This Agreement has been signed by all the parties in Mumbai and the
Facility is to be disbursed in Mumbai and payment of all amounts for repayment
of the Loan, payment of interest, fees, costs, charges and expenses and all
other amounts are also to be made in Mumbai. The Debt Recovery Tribunal in
Mumbai shall therefore have exclusive jurisdiction for any claim of the Lenders
on the Borrower.

                                       62

<PAGE>

                                  SCHEDULE - 1

                        THE ORIGINAL PARTIES COMMITMENTS

                            AND REPAYMENT INSTALMENTS

                                     PART I

                                  THE BORROWER

Name of the Borrower

BHARAT ALUMINIUM COMPANY LIMITED

                                    PART II A

                                  COMMITMENT A

<TABLE>
<CAPTION>
Name of Original Lender          Commitment
-----------------------          ----------
<S>                              <C>
1. Union Bank of India           Rupees one hundered fifty crores
2. Export Import Bank of India   Rupees seventy five crores
</TABLE>

                                    PART II B

                                  COMMITMENT B

<TABLE>
<CAPTION>
Name of Original Lender          Commitment
-----------------------          ----------
<S>                              <C>
1. Uco Bank                      Rupees one hundred crores
2. State Bank of Travancore      Rupees one hundred crores
3. Export Import Bank of India   Rupees seventy five crores
4. State Bank of Saurashtra      Rupees fifty crores
5. State Bank of Hyderabad       Rupees fifty crores
6. State Bank of Patiala         Rupees fifty crores
7. State Bank of Indore          Rupees fifty crores
</TABLE>

                                       63

<PAGE>

                                  SCHEDULE - 2

                        CONDITIONS PRECEDENT TO DRAWDOWN

1.   THE BORROWER

(a)  A copy certified by an Authorised Signatory as true copy of the original
     each of the constitutional documents of the Borrower.

(b)  A copy certified as true copy of the original resolution of the board of
     directors of the Borrower:

     (i)  approving the terms of, and the transactions contemplated by, the
          Finance Documents to which it is a party and resolving that it execute
          the Finance Documents to which it is a party;

     (ii) authorising a specified person or persons to execute the Finance
          Documents to which it is a party on its behalf; and

     (iii) authorising a specified person or persons, on its behalf, to sign
          and/or despatch all documents and notices (including, if relevant, any
          Drawdown Request) to be signed and/or despatched by it under or in
          connection with the Finance Documents to which it is a party.

(c)  A specimen of the signature of each person authorised by the resolution
     referred to in paragraph (b) above.

(d)  A certificate of the Borrower (signed by a director) confirming that
     borrowing of the Total Commitments would not cause any borrowing, limit
     binding on the Borrower to be exceeded.

(e)  A certificate of an authorised signatory of the Borrower certifying that
     each copy document relating to it specified in this Schedule 2 is correct,
     complete and in full force and effect as at a date no earlier than the date
     of this Agreement.

(f)  A copy certified as true copy of the original of each of the resolutions
     passed in the general meeting(s) of the Borrower authorising the directors
     of the Borrower to borrow in excess of the paid up capital and free
     reserves of the Company upto the

                                       64

<PAGE>

     limit specified therein and to mortgage and charge the Properties of the
     Borrower as security for the payment of the Loan Amounts.

2.   LEGAL OPINION

(a)  A legal opinion from legal advisors to the Arranger and the Agent, and
     Security Trustee substantially in the form distributed to the Original
     Lenders regarding the validity and enforceability of the Facility Agreement
     under the laws of India.

(b)  A legal opinion from the legal advisors to the Borrower in the form by the
     Agent and Security Trustee provided to the Borrower.

3.   OTHER DOCUMENTS AND EVIDENCE

(a)  A copy certified as true copy by an Authorised Signatory of the Borrower of
     any other Authorisation or other document, opinion or assurance which the
     Agent and Security Trustee considers to be necessary or desirable (if it
     has notified the Borrower accordingly) in connection with the entry into
     and performance of the transactions contemplated by any Finance Document or
     for the validity and enforceability of any Finance Document.

(b)  The Original Financial Statements of the Borrower.

(c)  Evidence that the fees, costs and expenses then due from the Borrower
     pursuant to Clause 6.6 (Costs and expenses) have been paid or will be paid
     by the first Drawdown Date.

(d)  the Borrower shall provide the Lenders a detailed project update report on
     the viability of the project.

                                       65

<PAGE>

                                   SCHEDULE-3

                                    REQUESTS

                                DRAWDOWN REQUEST

From:  [Borrower]

To:    [Agent and Security Trustee]

Dated: ______________________________

Dear Sirs

              [BORROWER] - [_____] RUPEE TERM FACILITIES AGREEMENT

                   DATED [_____] (THE "FACILITIES AGREEMENT")

1.   We refer to the Facilities Agreement. This is a Drawdown Request. Terms
     defined in the Facilities Agreement shall have the same meaning in this
     Drawdown Request.

2.   We wish to avail of a Facility A/B on the following terms:

     Proposed Drawdown Date: [_____] (or, if that is not a Business Day, the
                             next Business Day)

     Amount:                 [_____] or, if less, the Available Commitment

3.   We confirm that each condition specified in Clause 2.4.2 (Further
     conditions precedent) is satisfied on the date of this Drawdown Request.

4.   The proceeds of this Facility A/B should be credited to the account of the
     Borrower bearing No. ___________ with ___________ (Bank's Name).

5.   This Drawdown Request is irrevocable.

                                        Yours faithfully

                                        ----------------------------------------
                                        authorised signatory for
                                        [name of Borrower]

                                       66

<PAGE>

                                   SCHEDULE 4

                          FORM OF TRANSFER CERTIFICATE

To:    [_____] as Agent and Security Trustee

From:  [The Existing Lender] (the "EXISTING LENDER") and [The New Lender] (the
       "NEW LENDER")

Dated: _________________

              [BORROWER] - [_____] RUPEE TERM FACILITIES AGREEMENT

                   DATED [_____] (THE "FACILITIES AGREEMENT")

1.   We refer to the Facilities Agreement. This is a Transfer Certificate. Terms
     used in the Facility Agreement shall have the same meaning in this Transfer
     Certificate.

2.   We refer to Clause 10.1.3(ii) (Procedure for transfer):

     (a)  The Existing Lender and the New Lender agree to the Existing Lender
          transferring to the New Lender by novation all or part of the Existing
          Lender's Commitment, rights and obligations referred to in the
          Schedule in accordance with Clause 10.1.3(ii) (Procedure for
          transfer).

     (b)  The proposed Transfer Date is [_____].

     (c)  The Facility Office and address, fax number and attention details for
          notices of the New Lender for the purposes of Clause 12.3.2
          (Addresses) are set out in the Schedule.

3.   The New Lender expressly acknowledges the limitations on the Existing
     Lender's obligations set out in paragraph (c) of Clause 10.1.2 (Limitation
     of responsibility of Existing Lenders).

4.   This Transfer Certificate may be executed in any number of counterparts and
     this has the same effect as if the signatures on the counterparts were on a
     single copy of this Transfer Certificate.

                                       67

<PAGE>

                               SCHEDULE 4 (CONTD.)

               COMMITMENT/RIGHTS AND OBLIGATIONS TO BE TRANSFERRED

TRANSFER DETAILS:

Nature: [insert description of Facility(ies) transferred]
Final Maturity:                 [_____]

PARTICIPATION TRANSFERRED

Commitment Transferred

     Drawn Amount:              [_____]
     Undrawn Amount:            [_____]

ADMINISTRATION DETAILS:

New Lender's Receiving Account: [_____]
Process Agent:                  [_____]
Address:                        [_____]
Telephone:                      [_____]
Facsimile:                      [_____]
Telex:                          [_____]
Attn/Ref:                       [_____]

[Existing Lender]                       [New Lender]

By:                                     By:
    ---------------------------------       ------------------------------------

This Transfer Certificate is accepted by the Agent and Security Trustee and the
Transfer Date is confirmed as [_____].

[Agent and Security Trustee]

By:
    ---------------------------------

                                       68

<PAGE>

                                   SCHEDULE 5

                         Form of Compliance Certificate

To:    [_____] as Agent and Security Trustee

From:  [Borrower]

Dated: ______________________________

Dear Sirs

              [BORROWER] - [_____] RUPEE TERM FACILITIES AGREEMENT

                   DATED [_____] (THE "FACILITIES AGREEMENT")

1.   We refer to the Facilities Agreement. This is a Compliance Certificate.
     Terms used in the Facilities Agreement shall have the same meaning in this
     Compliance Certificate.

2.   We confirm that: [Insert details of covenants to be certified including
     calculations]

3.   [We confirm that no Default is continuing.] *

Signed:
        -----------------------------           --------------------------------
                 Director Of                               Director Of
                  [Borrower]                                [Borrower]

[insert applicable certification language]**

-------------------------------------
for and on behalf of
[name of auditors of the Borrower]***

*    If this statement cannot be made, the certificate should identify any
     Default that is continuing and the steps, if any, being taken to remedy it.

**   To be agreed with the Borrower's auditors and the Lenders prior to signing
     the Agreement.

***  Only applicable if the Compliance Certificate accompanies the audited
     financial statements and is to be signed by the auditors. To be agreed with
     the Borrower's auditors prior to signing the Agreement.

                                       69
<PAGE>

                                   SCHEDULE 6

                           BRIEF DESCRIPTION OF ASSETS

                                     PART -I

                  BRIEF DESCRIPTION OF THE IMMOVABLE PROPERTIES

     (A)  All pieces and parcels of lands as mentioned hereinbelow:

     Brief description of Free Hold Lands as mentioned hereinbelow

<TABLE>
<CAPTION>
             Date of
Sr. No.    acquisition    Survey No/PC NO.    Village    Area (Acres)
-------   -------------   ----------------   ---------   ------------
<S>       <C>             <C>                <C>         <C>
1.        11.06.74              24           Chotipani        3.07
2.        21.06.74              21           Rumgara          3.62
3.        12.10.74              20           Tanakhar        15.04
4.        12.04.74              21           Risda          253.02
5.        05.12.73              20           Rogbahari       88.67
6.        November 1973         21           Rumgara         16.87
7.        05.12.73              20           Padhimar       184.74
8.        November 1973         21           Risda          145.37
9.        12.10.1973            21           Kohadia        176.42
10.       16.11.76              4A21         Rogbahari       33.28
11.       16.11.76              5A 21        Rogbahari        3.55
12.       24.09.90                           Rogbahari        20.7
                                                            ------
                                                            944.65
                                                            ======
</TABLE>

                                       70

<PAGE>

     (B)  Description of Lease Hold Lands

<TABLE>
<CAPTION>
Sr. No.   Date of grant   Place   Areas (Acres)
-------   -------------   -----   -------------
<S>       <C>             <C>     <C>
1.        29.03.72        Korba        1136
</TABLE>

     (C)  Brief Description of Mining Leases

<TABLE>
<CAPTION>
             Date of     Area in
Sr. NO.   mining lease   hectares          Village
-------   ------------   --------   ---------------------
<S>       <C>            <C>        <C>
1.        21.3.1997       626.117   Rajandgaon (Kaverdha)
2.        9.07.92         639.169   Surguja (Maispat)
</TABLE>

     (D)  Brief Description of Flats and Offices

<TABLE>
<CAPTION>
                                                       LOCATION
SR. NO.   FLAT NO./ADDRESS                              (PLACE)
-------   ----------------                             ---------
<S>       <C>                                          <C>
1         66, Jolly Maker Chambers II, Plot No. 225,    Mumbai
          Backbay Reclamation, Nariman Point, Mumbai
          400 020

2.        67, Jolly Maker Chambers II, Plot No. 225,    Mumbai
          Backbay Reclamation, Nariman Point, Mumbai
          400

3.        103/203, 1st and 2nd Floor, Nugget Apt. New   Mumbai
          Prabhadevi Road, Lower Parel

4.        Garage No. G-1, Nugget Apt. New Prabhadevi    Mumbai
          Road, Lower Parel

5.        No. 502& 503, 5th floor, Sheel Jeet Apt       Mumbai
          Plot No. CTS 240, Mogra Village, Andheri

6.        A 4 to A 8, No 33 A Chowringhee Road          Kolkata

7.        A 294, New Friends Colony                    New Delhi

8.        Crescent Court No. 963, Poonamallee High      Madras
          Court, Kilpauk
</TABLE>

                                       71
<PAGE>

with buildings, factories and other structures standing thereon, godowns, water
tanks together with fixed plant, machinery, fixtures and fittings,
air-conditioning and cooling equipment, civil constructions,hoists, lifts and
any thing permanently attached to the earth, or permanently fastened or embedded
in anything attached to the earth

                                     PART II

                      BRIEF DESCRIPTION OF OTHER PROPERTIES

All the movable properties, both present and future, tangible or intangible
excluding, however, Current Assets, but including such as but not limited to
plant and machinery equipment, tools, accessories, uncalled capital, goodwill,
trade mark, software, patents copy rights including any other intellectual
property such as confidential information, control systems, office furniture,
type writers, computers, computer systems including computer software, drilling
machines, dyes, ropes and whether installed or not, and lying loose or in cases
or being in or upon or about the Borrower's premises and godowns or wherever
else the same may be or be held by any party anywhere to the order or
disposition of the Borrower or in the course of transit or delivery howsoever or
wheresoever and whether in actual possession of the Borrower or in possession of
any other person for and on behalf of the company and all other assets (not
being current assets) investments, including either by way of substitution,
addition or replacement thereof.

                                       72

<PAGE>

                                   SCHEDULE 7

                  Description of Existing Secured Indebtedness

<TABLE>
<CAPTION>
                                           Outstanding Amount
                                           of Indebtedness (Rs                            Date of security
SI. NO.   Name of Creditor                 Crs)                  Nature of Security       Document
-------   ------------------------------   -------------------   ---------------------    -----------------
<S>       <C>                              <C>                   <C>                      <C>
  1       Bank of India                                     25

  2       Allahahad Bank                                    10

  3       Corporation Bank                                  50

  4       HDFC                                              50

  5       Oriental Bank of Commerce                        100

  6       State Bank of Bikaner & Jaipur                    50

  7       State Bank of Hyderabad                           50

  8       State Bank of Indore                              50

  9       State Bank of Mysore                              50       Hypothecation on
                                                                   Movable Property and       16-Oct-03
 10       State Bank of Patiala                             50       Mortgage over the
                                                                    Immovable Property
 11       State Bank of Saurashtra                          50

 12       Syndicate Bank                                   100

 13       The Federal Bank Ltd                              50

 14       The Jammu & Kashmir Bank Ltd                     100

 15       The Kartnataka Bank Ltd                           50

 16       The Karur Vysya Bank Ltd                          50

 17       The Laxmi Vilas Bak Ltd                           15

 18       Uco Bank                                          50

 19       Vijaya Bank                                       50

          Total                                           1000

</TABLE>

                                       73

<PAGE>

IN WITNESS WHEREOF the Parties have caused this Agreement to be executed on
their behalf respectively on the Day and Year first hereinabove mentioned and in
the manner hereinafter provided:

BORROWER

The Common Seal of BHARAT ALUMINIUM
COMPANY LIMITED has been hereunto
affixed by Mr. T.L Palehi Kumar         /s/ T.L. Palehi Kumar
                                        ----------------------------------------

withinnamed, who have been duly
authorised for the purpose pursuant
to a resolution passed at a meeting
of its committee of directors held on
the ___ day of ___________ 2004 and
who have accordingly signed these
presents in token of the common seal
having been affixed

ARRANGER

Signed and delivered for and on
behalf of the Arranger, withinnamed,
namely

ABN AMRO SECURITIES (INDIA) PRIVATE
LIMITED by the hand of

Mr.                                     (SIGNED)
    ---------------------------------   ----------------------------------------

Mr.                                     (SIGNED)
    ---------------------------------   ----------------------------------------

ITS AUTHORISED SIGNATORY

AGENT AND SECURITY TRUSTEE

Signed and delivered for and on
behalf of the Agent and Security
Trustee, withinnamed, namely

IL&FS TRUST COMPANY LIMITED
by the hand of

MS SUJATA ACHREKAR                      /s/ Sujata Achrekar
                                        ----------------------------------------

ITS AUTHORISED SIGNATORY

                                       74

<PAGE>

LENDERS

Signed And Delivered For And On
Behalf Of The Lenders, Withinnamed,
Namely

1. UNION BANK OF INDIA

By Hand Of

Mr T L V Rao and Nita Mundkur           /s/ T L V Rao
                                        ----------------------------------------

ITS AUTHORISED SIGNATORY

                                        /s/ Nita Mundkur
                                        ----------------------------------------

2. EXPORT IMPORT BANK OF INDIA

By Hand Of

Mr Sudipto Bhattacharya                 /s/ Sudip Bhattacharya
                                        ----------------------------------------

ITS AUTHORISED SIGNATORY

3. UCO BANK

By Hand Of

Mr K.V. Kulkarni & A. Roychourdhauy     /s/ K.V. Kulkarni
                                        ----------------------------------------

ITS AUTHORISED SIGNATORY

                                        /s/ A. Roychourdhauy
                                        ----------------------------------------

4. STATE BANK OF TRAVANCORE

By Hand Of

Mr S.K. Birla                           /s/ S.K. Birla
                                        ----------------------------------------

ITS AUTHORISED SIGNATORY

5. STATE BANK OF SAURASHTRA

By Hand Of

Mr R.D. Ajgaonkar & R.S. Tavkar         /s/ R.D. Ajgaonkar
                                        ----------------------------------------

ITS AUTHORISED SIGNATORY

                                        /s/ R.S. Tavkar
                                        ----------------------------------------

6. STATE BANK OF HYDERABAD

By Hand Of

Mr K. Rapech Babu                       /s/ K. Rapech Babu
                                        ----------------------------------------

ITS AUTHORISED SIGNATORY

                                       75

<PAGE>

7. STATE BANK OF PATIALA

By Hand Of

Mr                                           (SIGNED)
   ----------------------------------        -------------------------------

ITS AUTHORISED SIGNATORY

8. STATE BANK OF INDORE

By Hand Of

Mr                                           (SIGNED)
   ----------------------------------        -------------------------------

ITS AUTHORISED SIGNATORY

                                       76

<PAGE>
                                        DATED THIS 18TH DAY OF AUGUST 2004

                                        BHARAT ALUMINIUM COMPANY LIMITED

                                                                    ... BORROWER

                                        ABN AMRO SECURITIES (INDIA) PRIVATE
                                        LIMITED

                                                           ... MANDATED ARRANGER

                                        AND

                                        UNION BANK OF INDIA

                                        AND

                                        EXPORT IMPORT BANK OF INDIA

                                                         ... JOINT LEAD MANAGERS

                                        IL&FS TRUST COMPANY LIMITED

                                                 .... AGENT AND SECURITY TRUSTEE

                                        AND

                                        THE BANKS AND FINANCIAL INSTITUTIONS

                                                            ... ORIGINAL LENDERS

                                             RUPEE TERM FACILITIES AGREEMENT

                                                  DAVE & GIRISH & CO.,
                                                        ADVOCATES
                                               1ST FLOOR, SETHNA BUILDING
                                                 55 MAHARSHI KARVE ROAD,
                                                      MARINE LINES,
                                                    MUMBAI - 400 002

                                       77

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