Document:

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                                                                    Exhibit 10.1

                                   ----------

                         RULES OF THE VEDANTA RESOURCES

                            LONG TERM INCENTIVE PLAN

                                   ----------

                   ADOPTED BY A SUB-COMMITTEE OF THE BOARD OF
                           DIRECTORS OF THE COMPANY ON
                                19 NOVEMBER 2003

                   APPENDIX 2 (INDIA SUB-PLAN) ADOPTED BY THE
                     REMUNERATION COMMITTEE OF THE BOARD ON
                                26 FEBRUARY 2004

                    MODIFICATIONS ADOPTED BY THE REMUNERATION
                     COMMITTEE OF THE BOARD ON FEBRUARY 13,
                                      2006

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                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                      PAGE
------                                                                      ----
<S>                                                                         <C>
1.  DEFINITIONS .........................................................     2
2.  GRANT OF AWARDS .....................................................     5
3.  NUMBER OF SHARES IN RESPECT OF WHICH AWARDS MAY BE GRANTED ..........     6
4.  RIGHTS OF EXERCISE OF AWARDS ........................................     7
5.  MANNER OF EXERCISE ..................................................     8
6.  ISSUE OR TRANSFER OF SHARES .........................................     9
7.  LAPSE OF AWARDS .....................................................     9
8.  TAKEOVER, RECONSTRUCTION AND AMALGAMATION, AND LIQUIDATION ..........     9
9.  PAYE AND NATIONAL INSURANCE CONTRIBUTIONS ...........................    10
10. ADJUSTMENTS .........................................................    11
11. ALTERATION ..........................................................    11
12. GENERAL .............................................................    13
APPENDIX 1 ..............................................................     I
APPENDIX 2 ..............................................................     I
</TABLE>
<PAGE>

                         RULES OF THE VEDANTA RESOURCES
                            LONG TERM INCENTIVE PLAN

1.   DEFINITIONS

1.1 In this Plan, the following words and expressions shall bear, unless the
context otherwise requires, the meanings set forth below:

ADMISSION means the admission of Shares to (i) the Official List and (ii)
trading on the London Stock Exchange's market for listed securities;

THE ADOPTION DATE means the date on which the Plan is adopted by the Board;

AWARD means an award granted in the form referred to in rule 2.1;

AWARD LETTER means the notification to a participant setting out the specific
conditions of an Award;

BASIC SALARY means an Eligible Employee's annual basic salary in respect of his
employment with the Group;

THE BOARD means the board of directors of the Company or, where appropriate, a
duly authorised committee thereof;

CAPITAL REORGANISATION means any variation in the share capital or reserves of
the Company (including, without limitation, by way of capitalization issue,
rights issue, sub-division, consolidation or reduction);

THE COMPANY means Vedanta Resources plc (registered in England and Wales under
Company No 04740415) whose registered office is at 44 Hill Street, London WIJ
5NX;

CONTROL has the meaning given by section 840 of the Taxes Act;

DATE OF GRANT means the date on which the Board grants an Award;

DISCRETIONARY SHARE PLAN means an Employees' Share Scheme in which participation
is solely at the discretion of the Board excluding the Vedanta Resources Share
Reward Plan;

ELIGIBLE EMPLOYEE means any bona fide employee of any member of the Group who is
not within six months of his normal retirement date (being the age at which he
is either bound or entitled to retire in accordance with his contract of
employment);

EMPLOYEES' SHARE SCHEME has the meaning given by section 743 of the Companies
Act 1985, but shall exclude the Vedanta Resources Share Reward Plan;

FINANCIAL YEAR means a financial year of the Company within the meaning of
section 742 of the Companies Act 1985;

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GRANT PERIOD means the period of 42 days commencing on any of the following:

(a) Admission;

(b) the day immediately following the day on which the Company makes an
announcement of its results for the last preceding financial year, half-year or
other period; or

(c) any day on which the Board resolves that exceptional circumstances exist
which justify the grant of Awards;

GROUP means the Company and its Subsidiaries and MEMBER OF THE GROUP shall be
construed accordingly;

THE LONDON STOCK EXCHANGE means the London Stock Exchange plc or any successor
body to it;

MARKET VALUE means in relation to a Share on any day

(a) if and so long as the Shares are listed on the London Stock Exchange shall
taken to be the average closing middle market quotation for such a share over
the five Dealing Days immediately preceding the Date of Grant (as derived from
the London Stock Exchange Daily Official List) over the five dealing days
immediately preceding the Date of Grant; or

(b) subject to (a) above, its market value determined in accordance with Part
VIII of the Taxation of Chargeable Gains Act 1992;

OFFICIAL LIST means the Official List of the UK Listing Authority;

PARTICIPANT means any individual to whom an Award has been granted or (where the
context so admits or requires) the personal representatives of any such person;

PARTICIPATING COMPANY means:

(a) the Company; and

(b) any other company which is under the Control of the Company or is a
Subsidiary of the Company:

THE PERFORMANCE CONDITIONS means the conditions specified in Appendix 1 in
relation to Shares subject to the Award or such other no less demanding
conditions as the Board may have specified on the Date of Grant;

THE PERFORMANCE PERIOD means, unless foreshortened pursuant to rule 4 or rule 8,
a period of three consecutive years of which the first is the year commencing
Date of Grant, or such other period as the Board may determine;

THE PLAN means the Vedanta Resources Long Term Incentive Plan 2003 as amended
from time to time;
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RELEVANT COMPANY means the company (being any member of the Group) which incurs
a Tax Liability as set out in Rule 9;

SHARES means fully paid and irredeemable ordinary shares in the capital of the
Company or shares representing those shares following any Capital
Reorganisation;

SUBSIDIARY has the meaning given by sections 736 and 736A of the Companies Act
1985;

TAX LIABILITY means a liability to account for any tax, national insurance,
social security or other levy in respect of the Award (whether arising by reason
of grant or exercise of the Award or otherwise), including for the avoidance of
doubt;

(a) any liability to pay secondary Class 1 National Insurance Contributions for
which an agreement or election has been entered into under paragraph 3A or
paragraph 3B of Schedule 1 to the Social Security Contributions and Benefits Act
1992; and

(b) any liability arising after the termination of the Participant's employment
for whatever reason and which may arise or be incurred in any jurisdiction
whatsoever and, by the law of the same jurisdiction may or shall be recovered
from the person entitled to the Awards;

but, subject to (a) above, not including any secondary Class 1 National
Insurance Contributions

TAXES ACT means the Income and Corporation Taxes Act 1988;

THE TRUSTEES means the trustees or trustee for the time being of any employee
trust established by the Company from time to time for the benefit of (among
others) employees of the Group;

UK LISTING AUTHORITY means the Financial Services Authority acting in its
capacity as the competent authority for the purpose of Part VI of the Financial
Services and Markets Act 2000 and in the exercise of its functions in respect of
Admission to the Official List otherwise than in accordance with Part VI of the
Financial Services and Markets Act 2000;

VESTED SHARES means Shares subject to Awards in respect of which the Performance
Conditions have been satisfied and VEST, VESTED and VESTING DATE shall be
construed accordingly.

1.2 In the Plan, unless the context requires otherwise:

(a)  the headings are inserted for convenience only and do not affect the
     interpretation of any Rule;

(b)  a reference to a Rule is a reference to a Rule of the Plan;

(c)  a reference to a statute or statutory provision includes a reference;

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     (i)  to that statute or provision as from time to time consolidated,
          modified, re-enacted or replaced by any statute or statutory
          provision;

     (ii) to any repealed statute or statutory provision which it re-enacts
          (with or without modification); and

     (iii) to any subordinate legislation made under it;

(d)  words in the singular include the plural, and vice versa;

(e)  a reference to the masculine shall be treated as a reference to the
     feminine, and vice versa;

(f)  if a period of time is specified and starts from a given day or the day of
     an act or event, it is to be calculated exclusive of that day.

2.   GRANT OF AWARDS

2.1 The Board may during a Grant Period in its discretion grant an Award to any
Eligible Employee. Awards may be granted in the form of a nil cost option to
acquire Shares, a contingent right to receive Shares or a conditional allocation
of Shares. Any reference to an Award being "exercised" or "exercisable" shall in
the case of an Award which is not granted in the form of an option, be construed
as being "released" or "capable of release".

2.2 The Board shall determine the Performance Conditions applicable to an
Award.

2.3 No Awards may be granted more than 10 years after the Adoption Date.

2.4 The Company Secretary shall issue to each Participant an Award Letter in
such form (not inconsistent with the provisions of the Plan) as the Board may
from time to time prescribe. Each such Award Letter shall specify the Date of
Grant of the Award, the number and class of Shares over which the Award is
granted and the Performance Conditions that must be satisfied before the Vesting
Date.

2.5 Except as provided in the Plan, every Award shall be personal to the
Participant to whom it is granted and shall not be transferable. Any transfer or
attempted transfer of an Award shall cause it to lapse.

2.6 No amount shall be payable in respect of the grant or exercise of an Award.

2.7 The grant of any Award under the Plan shall be subject to the provisions of
the Model Code for Securities Transactions by Directors of Listed Companies and
to obtaining any approval or consent required under the provisions of the
Listing Rules published by the United Kingdom Listing Authority or the City Code
on Takeovers and Mergers or of any regulation or enactment applicable to such
grant.
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3.   NUMBER OF SHARES IN RESPECT OF WHICH AWARDS MAY BE GRANTED

3.1 No Award shall be granted to the extent that the result of that grant would
be that:

(a)  the aggregate number of Shares that could be issued on the exercise of that
     Award and any other Award granted at the same time, when added to the
     number of Shares that:

     (i)  could be issued on the exercise of any subsisting Awards or options
          granted during the preceding ten years under the Plan or any other
          Employees' Share Scheme established by the Company or any company
          under the Control of the Company; and

     (ii) have been issued on the exercise of any Awards or options granted
          during the preceding ten years under the Plan or any other Employees'
          Share Scheme established by the Company or any company under the
          Control of the Company,

     would exceed 10 per cent of the ordinary share capital of the Company for
     the time being in issue; and

(b)  the aggregate number of Shares that could be issued on the exercise of that
     Award and any other Awards granted at the same time, when added to the
     number of Shares that:

     (i)  could be issued on the exercise of any other subsisting Awards or
          options granted during the preceding ten years under the Plan or any
          other Discretionary Share Plan established by the Company or any
          company under the Control of the Company; and

     (ii) have been issued on the exercise of any Award or options granted
          during the preceding ten years under the plan or any other
          Discretionary Share Plan established by the Company or any company
          under the Control of the Company,

     would exceed 5 per cent of the ordinary share capital of the Company for
     the time being in issue.

3.2 Reference in this rule 3 to the issue of Shares shall, for the avoidance of
doubt, mean the issue and allotment (but not transfer) of Shares

3.3 In determining the above limits no account shall be taken of any newly
issued Shares where an Award was released, lapsed or otherwise became incapable
of exercise.

3.4 An Award shall not be granted to any executive director of the Company if
such grant would cause the total Market Value of the maximum number of Shares
that may be acquired on exercise of the Award (as measured at the Date of Grant
of the Award) when aggregated with the total Market Value of the maximum number
of

<PAGE>

Shares that may be acquired pursuant to any other Award granted to him under the
Plan in the same Financial Year, to exceed 100% of his Basic Salary as at the
Date of Grant.

4.   RIGHTS OF EXERCISE OF AWARDS

4.1 Save as provided in Rules 4.4, 4.7 and 8. an Award shall only be
exercisable:

(a)  if the Award has Vested; and

(b)  by a Participant who has remained an Eligible Employee during the
     Performance Period.

4.2 As soon as reasonably practicable after the end of each Performance Period
the Board will notify Participants to the extent to which the Performance
Conditions have been satisfied and the Award has Vested. An Award may be
exercised in respect of such number of Shares as have Vested in accordance with
these rules.

4.3 Save as otherwise provided in these rules, an Award shall lapse
automatically on the Participant ceasing to be an employee of a member of the
Group (whether lawfully or unlawfully) at any time before the expiry of the
Performance Period applicable to the Award.

4.4 Where a Participant ceases to be an employee of a member of the Group before
the expiry of the Performance Period applicable to an Award by reason of:

(a)  injury, disability or ill-health;

(b)  retirement at or after the date on which he is bound to retire under his
     contract of employment;

(c)  his employing company ceasing to be a member of the Group;

(d)  the business (or part of a business) in which he is employed being
     transferred to a transferee which is not a member of the Group; or

(e)  any other reason the Board so decides in its absolute discretion,

his Award shall Vest at the date on which the employment ceases to the extent
to which any Performance Conditions have been satisfied by that date (and for
this purpose the Performance Period shall be treated as ending on the date of
such cessation) and he may exercise the Award within six months of the date on
which the employment ceased PROVIDED THAT in all cases where employment ceases
before the expiry of any relevant Performance Period and Awards become
exercisable pursuant to this rule 4.4, unless the Board otherwise determines,
the number of Shares in respect of which an Award may be exercised shall be the
number in respect of which the Award has Vested (subject to any adjustments
under rule 10) multiplied by the fraction A/B (where A is that part of the
Performance Period measured in complete months from the Date of Grant to the
date of cessation of employment and B is 36 or
<PAGE>

such other number as is equal to the number of months in the original
Performance Period).

Failing any such exercise the Awards shall (subject to rules 4.6 and 4.7) lapse
automatically. For the avoidance of doubt, an Award exercisable under this rule
4.4 may lapse at an earlier date by virtue of rule 8.

4.5 For the purpose of rule 4.4, a female Participant shall not be treated as
ceasing to be an employee of a member of the Group if absent from work wholly or
partly because of pregnancy or confinement, until she ceases to be entitled to
exercise any statutory or contractual entitlement to return to work.

4.6 In any case where the Board is aware that a Participant will cease to be an
employee of a member of the Group and be entitled or permitted to exercise his
Awards immediately thereafter under rule 4.4(c) or 4.4(d) it may permit him to
exercise his Awards in the period of 14 days immediately preceding the date upon
which it believes that such cessation will occur (but having regard to the
extent to which any Performance Conditions have been satisfied and for this
purpose the Performance Period shall be treated as ending on the first day of
such 14 day period).

4.7 If the Participant dies while in service or at any time after leaving
service when he holds an Award, his legal personal representatives may exercise
his Awards within twelve months of the date on which death occurred subject to
any Performance Conditions being satisfied (and for this purpose where the date
of death occurred before the expiry of any relevant Performance Period, the
Performance Period shall be treated as ending on the date of the Participant's
death) PROVIDED THAT in all cases where the death occurred before the expiry of
any relevant Performance Period and Awards become exercisable pursuant to this
rule 4.7, the number of Shares in respect of which an Award may be exercised
shall be at the discretion of the Company, subject to a minimum as determined
below:

The number in respect of which the Award is granted (subject to any adjustments
under rule 10) multiplied by the fraction A/B (where A is that part of the
Performance Period measured in complete months from the Date of Grant to the
date of the Participant's death and B is 36 or such other number as is equal to
the number of months in the original Performance Period). For the avoidance of
doubt, an Award exercisable under this rule 4.7 shall not lapse prior to the
expiry of the specified 12 month period by virtue of rule 4.4 but may lapse at
an earlier date by virtue of rule 8.

5.   MANNER OF EXERCISE

5.1 Subject to rule 5.2, a Participant may exercise an Award which is granted in
the form of a nil cost option or a right to acquire shares, at any time during
the period of six months following the Vesting Date. An Award may be exercised,
in whole or in part, by the delivery to the Company Secretary of the Company or
its duly appointed agent of a notice of exercise in the prescribed form duly
completed and signed by the Participant (or by his duly authorised agent). The
delivery of a completed notice of exercise shall not be treated as effecting
the exercise of an Award unless and until the Board is satisfied that the
Performance Conditions have been fulfilled.

<PAGE>

5.2 Where the exercise of an Award or the issue or transfer of any Shares under
the Plan would be prohibited by law or the Model Code for Securities
Transactions by Directors of Listed Companies (or the Company's dealing rules)
the Award shall not be treated as having Vested and the period during which the
Participant may exercise his Award and the period during which Shares may be
issued or transferred shall not be treated as having commenced until such
prohibition no longer applies.

6.   ISSUE OR TRANSFER OF SHARES

6.1 Subject to Rule 5.2, the Board shall issue or procure the transfer of Shares
to be allotted or transferred pursuant to the exercise of an Award within 28
days following the effective date of exercise of the Award.

6.2 Shares to be issued pursuant to the Plan will rank pari passu in all
respects with the Shares in issue on the date of issue or transfer and they will
not rank for any rights attaching to Shares by reference to a record date
preceding the date of issue or transfer.

6.3 Subject to Rule 12.2 below, the Company and its subsidiaries may provide
funds to the Trustees to enable the Trustees to purchase existing Shares or
subscribe for new Shares in the Company for the purpose of the Plan, provided
that no funds may be provided to enable the Trustees to acquire Shares in the
Company if such an acquisition would result in the Trustees holding more than 5%
of the ordinary share capital of the Company in issue at that time.

7.   LAPSE OF AWARDS

7.1 Awards shall lapse upon the occurrence of the earliest of the following
events:

(a)  subject to any longer exercise period applying under rule 4.7, the expiry
     of six months following the Vesting Date;

(b)  to the extent that it is determined that the Performance Conditions have
     not been met following the expiry of the Performance Period, the expiry of
     that period;

(c)  the expiry of the period specified in Rule 4;

(d)  the expiry of the period specified in Rule 8.1;

(e)  the Participant being deprived of the legal or beneficial ownership of the
     Award by operation of law, or doing or omitting to do anything which causes
     him to be so deprived or becomes bankrupt.

8.   TAKEOVER, RECONSTRUCTION AND AMALGAMATION, AND LIQUIDATION

8.1 If:

(a)  any person obtains Control of the Company as a result of making an offer to
     acquire Shares which is either unconditional or is made on a condition such
<PAGE>

     that if it is satisfied the person making the offer will have Control of
     the Company;

(b)  any person becomes bound or entitled to acquire Shares under Sections 428
     to 430E of the Companies Act 1985; or

(c)  under section 425 of the Companies Act 1985 the court sanctions a
     compromise or arrangement proposed for the purposes of, or in connection
     with, a scheme for the reconstruction of the Company or its amalgamation
     with any other company or companies; or

(d)  if notice is duly given of a resolution for the voluntary winding-up of the
     Company,

then the Board shall within seven (7) days of becoming aware thereof notify
every Participant and an Award may be exercised within six (6) months of the
occurrence of the relevant event (or such shorter time as the Board may specify)
provided that unless the Board decides otherwise the number of Shares that may
be transferred shall be determined by reference to the operation of the
Performance Conditions (as determined by the Board on a pro rata basis) on the
day after the occurrence of the relevant event.

8.2 If the Board becomes aware that the Company is or is expected to be affected
by any demerger, dividend in specie, super dividend or other transaction which,
in the opinion of the Board, would affect the current or future value of any
Awards, the Board, acting fairly reasonably and objectively may, in their
absolute discretion, allow some or all Awards to be exercised. The Board shall
specify the period in which such Awards shall be exercisable and whether such
Awards shall lapse at the end of the specified period.

8.3 For the purposes of Rule 8.1(a) above a person shall be deemed to have
obtained Control of the Company if he and others acting in concert with him have
together obtained Control of it.

9.   PAYE AND NATIONAL INSURANCE CONTRIBUTIONS

9.1 This rule applies when, in relation to an Award, any member of the Group is
liable, or is in accordance with current practice believed by the Board to be
liable under any statute, regulation or otherwise, to account to any revenue or
other authority for any sum in respect of any Tax Liability of the Participant.
When this Rule applies, the Participant shall indemnify and keep indemnified the
Relevant Company for the Tax Liability. The Participant shall pay the Relevant
Company a sum equal to the Tax Liability immediately upon receiving written
notice of the quantum of the Tax Liability.

9.2 To the extent legally possible, the Company may require as a condition for
the exercise of any Award that the Participant shall enter into:

<PAGE>

(a)  an agreement to reimburse the Relevant Company in whole or in part for any
     secondary Class 1 national insurance contributions arising in connection
     with such Award; or

(b)  an election with the Relevant Company to assume the liability for any
     secondary Class 1 national insurance contributions,

payable on the exercise, assignment or release of an Award, including an
agreement or election under paragraph 3A or 3B of Schedule 1 to the Social
Security Contributions and Benefits Act 1992.

9.3  If:

(a)  the Participant shall fail to reimburse the Relevant Company in accordance
     with an agreement entered into pursuant to rule 9.2; or

(b)  the Participant shall fail to make payment to the Relevant Company
     immediately upon receipt of a written notice in accordance with rule 9.1;
     or

(c)  the Relevant Company does not issue a written notice in accordance with
     rule 9.1

then the Company is authorised by the Participant to sell such number of Shares
as in respect of which the Award has been validly exercised as may be
sufficient to release a sum which (after allowance for the costs and expenses of
such a sale) may discharge (and shall be applied in discharge of) the
Participant's liability to the Relevant Company under this Rule 9 or any
agreement entered into in accordance with Rule 9, and may exercise all such
powers and may appoint any of its officers to sign all such documents in the
name of the Participant and as his act and deed as may be necessary for this
purpose.

9.4 If any amount of the Tax Liability should not be recovered as set out above,
the Participant shall be liable to make good any amount outstanding on demand.

10.  ADJUSTMENTS

10.1 The number of Shares over which an Award is granted may be adjusted in such
manner as the Board shall determine following any Capital Reorganisation.

10.2 The Board may take such steps as it may consider necessary to notify
Participants of any adjustment made under this Rule 10 and to call in, cancel,
endorse, issue or reissue any Award Letter subsequent upon such adjustment.

11.  ALTERATION

11.1 Subject to Rules 11.2 and 11.4, the Board shall have the discretion to
alter or add to these Rules, and impose additional conditions or requirements on
the Awards or on the terms on which Shares are acquired.
<PAGE>

11.2 Subject to Rules 11.3 and 11.6, no amendment to the advantage of present or
future Participants shall be made under Rule 11.1 to such of the provisions of
the Plan as relate to the following:

(a)  the persons to whom Awards may be granted;

(b)  the limitations on the grant of Awards:

(c)  the adjustment of Awards;

(d)  the restrictions on the exercise of Awards;

(e)  the rights to be attached to Shares issued upon the exercise of Awards;

(f)  the rights of Participants on a winding-up;

(g)  the transferability of Awards; and

(h)  this Rule if,

without the prior approval by ordinary resolution of the members of the Company
in general meeting.

11.3 Rule 11.2 shall not apply to any alteration or addition:

(a)  to benefit the administration of the Plan;

(b)  to comply with or take account of the provisions of any proposed or
     existing legislation or law;

(c)  to take advantage of any changes to the legislation or law; or

(d)  to obtain or maintain favourable tax treatment of the Company, any Group
     Company or any present or future Participant.

11.4 No amendment or addition shall be made to these Rules which would abrogate
or adversely affect the subsisting rights of Participants unless:

(a)  where the rights are enjoyed by a single Participant and are not enjoyed by
     any other Participant or class of Participants, it is made with the written
     consent of that Participant; or

(b)  where the rights are enjoyed by all Participants or any class of
     Participants then:

     (i)  with the consent in writing of such number of Participants or class of
          Participants (as the case may be) as hold Awards under the Plan to
          acquire 75 per cent of the Shares which, would be issued or
          transferred if all Awards granted and subsisting under the Plan were
          exercised; or

<PAGE>

     (ii) by a resolution at a meeting of Participants or class of Participants
          passed by not less than 75 per cent of the Participants who attend and
          vote either in person or by proxy;

and for the purpose of this Rule 11.4 the Participants or any class of
Participants shall be treated as the holders of a separate class of share
capital and the provisions of the Articles of Association of the Company
relating to class meetings shall apply mutatis mutandis.

11.5 No amendment or addition shall be made to the conditions or limitations of
exercise set out in a particular Award Letter, unless:

(a)  an event occurs which causes the Board to consider that a waived, varied or
     amended condition would be a fairer measure of performance and would be no
     more difficult to satisfy; or

(b)  the Participant party to that Award Letter gives his written consent to
     such amendment or addition.

11.6 Notwithstanding any other provision of the Plan, the Board may, in respect
of Awards granted to Participants who are or who may become subject to taxation
outside the United Kingdom on their remuneration, amend or add to the provisions
of the Plan and the terms of Awards as it considers necessary or desirable to
take account of or to mitigate or to comply with relevant overseas taxation,
securities or exchange control laws provided that the terms of Awards granted to
such Participants are not overall more favourable than the terms of Awards
granted to other Participants.

11.7 As soon as reasonably practicable after making any alteration or addition
under Rule 11, the Board shall give written notice thereof to any Participant
affected thereby.

12.  GENERAL

12.1 The Plan shall terminate upon the tenth anniversary of the Adoption Date or
at any earlier time by the passing of a resolution by the Board or an ordinary
resolution of the Company in general meeting. Termination of the Plan shall be
without prejudice to the subsisting rights of Participants.

12.2 The Company and any Subsidiary of the Company may provide money to the
trustees of any trust or any other person to enable them or him to acquire
Shares to be held for the purposes of the Plan, or enter into any guarantee or
indemnity for those purposes, to the extent permitted by section 153 of the
Companies Act 1985

12.3 The rights and obligations of any individual under the terms of his office
or employment with the Group shall not be affected by his participation in the
Plan or any right which he may have to participate therein, and an individual
who participates in the Plan shall waive all and any rights to compensation or
damages in consequence of the termination of his office or employment with any
such company for any reason whatsoever, howsoever that termination occurs,
whether lawful or unlawful, insofar as those rights arise or may arise from his
ceasing to have, rights under the Plan as a
<PAGE>

result of such termination, or from the loss or diminution in value of such
rights or entitlements.

12.4 The existence of any Award shall not affect in any way the right or power
of the Company or its shareholders to make or authorise any or all adjustments,
recapitalisations, reorganisations or other changes in the Company's capital
structure, or any merger or consolidation of the Company, or any issue of
Company shares, bonds, debentures, preferred or prior preference stocks ahead
of, or convertible into, or otherwise affecting the Shares or the rights
thereof, or the dissolution or liquidation of the Company or any sale or
transfer of all or any part of its assets or business, or any other corporate
act or proceeding, whether of a similar character or otherwise.

12.5 Any notice or other document required to be given under or in connection
with the Plan may be delivered to a participant or sent by post to him at his
home address according to the records of his employing company or such other
address as may appear to the Company to be appropriate including any electronic
address. Notices sent by post shall be deemed to have been given on the day
following the date of posting and notices sent by electronic means shall be
deemed to have been given twelve hours after the time of despatch or at such
earlier time as receipt is acknowledged. Any notice or other document required
to be given to the Company under or in connection with the Plan may be delivered
or sent by post to it at its registered office (or such other place or places
as the Company may from time to time determine and notify to Participant).

12.6 Benefits under the Plan shall not be pensionable.

12.7 The Company, or where the Board so directs any Participating Company, shall
pay the appropriate stamp duty on behalf of Participants in respect of any
transfer of Shares on the exercise of Awards.

12.8 These Rules shall be governed by and construed in accordance with English
law. All disputes arising out of or in connection with the rules shall be
subject to the exclusive jurisdiction of the courts of England and Wales.

<PAGE>

                                   APPENDIX 1

                  PERFORMANCE CONDITIONS ATTACHING TO AN AWARD

1. The extent to which an Award may be exercised will be determined in
accordance with the following provisions.

2. For the purpose of this Appendix:

(a)  TSR means the Total Shareholder Return of a company over any period being
     a combination of its share price and dividend performance which shall be
     calculated as set out in paragraph 3 below.

(b)  The comparator companies are those companies comprising the FTSE Worldwide
     Mining Index (excluding precious metals) at the beginning of the
     Performance Period (the COMPARATOR GROUP).

(c)  TSR RANKING means the Company's TSR ranked against the companies in the
     Comparator Group.

3.   (a) The TSR of the Company and of each company in the Comparator Group over
     the relevant Performance Period shall be computed by comparing the internal
     rate of return derived from the amounts determined below:

     (i)  the average of the closing mid-market quotation of the shares in each
          company in the Comparator Group (as derived from the London Stock
          Exchange Daily Official List) during the four weeks immediately
          preceding the commencement of the Performance Period; and

     (ii) the average of the closing mid-market quotation of the shares in each
          company in the Comparator Group (as derived from the London Stock
          Exchange Daily Official List) during the four weeks immediately
          preceding the end of the Performance Period.

(b)  For the purpose of computing the calculation in paragraph 3(a):

     (i)  gross dividends (including special dividends) paid by each company in
          the Comparator Group shall be deemed to be reinvested in the relevant
          company's shares on the day on which the dividend is paid; and

     (ii) so as to preserve the original notional investment, an appropriate
          adjustment shall be made for any variation in the share capital of any
          company in the Comparator Group occurring during the Performance
          Period; and
<PAGE>

     (iii) if at the end of the Performance Period, any of the companies in the
          Comparator Group has undergone a change in circumstances (such as the
          cessation of trading or merger with another company) the information
          provider referred to in paragraph 3(c) may advise the Board about
          appropriate treatment of that company for the purpose of determining
          its TSR Ranking.

(c)  The calculation under paragraph 3(a) shall be calculated by a recognised
     provider of such information, selected by the Board during the Performance
     Period. The method of measuring the performance of companies in the
     Comparator Group that have undergone a change in circumstances for the
     purposes of determining relative TSR performance shall be confirmed by the
     Board's remuneration adviser.

(d)  The percentage of the Shares comprised in the Award that Vest depends on
     the Company's TSR relative to the companies in the Comparator Group as
     indicated below:

<TABLE>
<CAPTION>
 TSR RANKING WITHIN FTSE WORLD MINING INDEX
(EXCLUDING PRECIOUS METALS)                   PERCENTAGE OF SHARES THAT VEST
-------------------------------------------   ------------------------------
<S>                                           <C>
Below 50th percentile (i.e. below median)                  None
At 50th percentile (i.e. median position)                   40%
At 75th percentile (i.e. top quartile)                     100%
</TABLE>

4. The Board may make such adjustments to the performance conditions in this
Appendix as it considers appropriate to take account of:

(a)  any increase or variation in the share capital of the Company;

(b)  any change so the accounting standards adopted by the Company;

(c)  a change in the calculation of TSR; or

(d)  any other factors which are relevant in the opinion of the Board.

<PAGE>

                                   APPENDIX 2

                                 INDIA SUB-PLAN

Pursuant to Rule 11.6 of the Plan, this sub-plan modifies certain provisions of
the Plan. These modifications are effective with respect to all Eligible
Employees regularly employed in India, and only with respect to such Eligible
Employees. Such employees would at the instance of the applicable Participating
Company be allotted Shares of Vedanta Resources Plc. ('the Company'). All Plan
provisions not specifically modified by this sub-plan continue to apply to such
Employees.

1. The definition of "Eligible Employee" in Rule 1 is modified by adding the
following new sentence at the end thereof:

     "Notwithstanding the foregoing, Eligible Employee shall not include any
     individual who: (1) is a promoter of the Company or belongs to the promoter
     group of the Company; or (2) is a director of the Company and who either by
     himself or through his relative or through any body corporate, directly or
     indirectly holds more than 10% of the outstanding equity shares of the
     Company,"

     For the purposes of this definition, the terms "employee", "promoter",
     "promoter group" shall have the same meaning given in the Employee Stock
     Option Plan Guidelines laid down in Notification No.F.No.142/48/2001-TPL
     dated October 11, 2001 issued by the Central Government of India which are
     reproduced hereunder:

     (i)  'employee' means

          (A)  a permanent employee of the company.

          (B)  'director' of a company, whether whole time or not.

     (ii) 'promoter' means:

          (A)  the person or persons who are in over-all control of the company;

          (B)  the person or persons who are instrumental in the formation of
               the company or programme pursuant to which the shares were
               offered to the public;

          (C)  the persons or persons named in the offer document as promoter(s)

<PAGE>

          Provided that a director or officer of the company, if he is acting as
          such only in his professional capacity will not be deemed to be a
          promoter.

     (iii) "promoter group" means

          (A)  an immediate relative of the promoter i.e, spouse of that person,
               or any parent brother, sister or child of the person or of the
               spouse;

          (B)  persons whose shareholding is aggregated for the purpose of
               disclosing in the offer document "shareholding of the promoter
               group".

2. The first sentence of Rule 5.1 is modified as follows:

     "Subject to rule 5.2, a Participant may exercise an Award which is granted
     in form of a right to acquire the shares for payment of nominal price of
     US 10 Cents per share at any time during the period of six months
     following the Vesting Date."

3. Rule 11 is modified as follows:

     "The terms and conditions contained in this Plan shall not be changed after
     the date the Plan comes into effect."

4. A new Rule 12.9 shall be added as follows:

     "APPROVAL BY PARTICIPATING COMPANY

     The Plan as modified by the India Sub-plan shall be approved by the
     Shareholders in General Meeting of each Participating Company in India to
     be held on or before February 28, 2004."

5. A new Rule 12.10 shall be added as follows:

     "LOCK-IN PERIOD

     Shares issued to the Employees under this Plan shall not have any holding
     period."<PAGE>
                                                                    EXHIBIT 10.2

                                 5 DECEMBER 2003

                              VEDANTA RESOURCES PLC

                           VOLCAN INVESTMENTS LIMITED

                              DWARKAPRASAD AGARWAL

                              AGNIVESH AGARWAL AND

                                  ANIL AGARWAL

                        ================================

                             RELATIONSHIP AGREEMENT

                        ================================

                         FRESHFIELDS BRUCKHAUS DERINGER

<PAGE>
                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                                                         PAGE
<S>    <C>                                                                                                     <C>
1.     INTERPRETATION AND DEFINITIONS..............................................................................2
2.     CONDITIONALITY..............................................................................................4
3.     RELATIONSHIP BETWEEN THE VOLCAN GROUP AND THE VEDANTA GROUP.................................................5
       General.....................................................................................................5
       Autonomy....................................................................................................5
       The Board...................................................................................................5
       Independence of the Board...................................................................................5
       Corporate governance........................................................................................6
       Approval of transactions with Volcan........................................................................6
       Volcan's right to be consulted on and to appoint Directors..................................................7
       Holding of interests in base metals and minerals............................................................8
       Standstill..................................................................................................9
       Undertakings of the Volcan Shareholders.....................................................................9
4.     INFORMATION.................................................................................................9
5.     VEDANTA'S CONSTITUTION.....................................................................................11
6.     OVERRIDING OBLIGATIONS.....................................................................................11
7.     TERMINATION OF AGREEMENT...................................................................................11
8.     AMENDMENT AND WAIVER.......................................................................................12
9.     ASSIGNMENT.................................................................................................12
10.    SEVERABILITY...............................................................................................12
11.    ENTIRE AGREEMENT...........................................................................................12
12.    LAW AND DISPUTES...........................................................................................13
13.    SERVICE OF PROCESS.........................................................................................13
14.    NOTICES....................................................................................................13
15.    COUNTERPARTS...............................................................................................14
16.    COSTS......................................................................................................14
17.    NO PARTNERSHIP.............................................................................................14
18.    THIRD PARTIES..............................................................................................15
APPENDIX A........................................................................................................19
DEED OF ADHERENCE.................................................................................................19
</TABLE>

                                                                          Page 1

<PAGE>
THIS DEED is made on 5 December 2003

BETWEEN

(1)  VEDANTA RESOURCES PLC, a public limited company (registered number
     04740415) incorporated under the laws of England whose registered office is
     at Hill House, 1 Little New Street, London EC4A 3TR, United Kingdom
     (VEDANTA);

(2)  VOLCAN INVESTMENTS LIMITED, a company incorporated under the laws of the
     Bahamas whose registered office is at Suite 61 Grosvenor Close, Shirley
     Street, Nassau, Island of New Providence, Bahamas (VOLCAN);

(3)  DWARKAPRASAD AGARWAL of 42 Hill Street, London WIJ 5NU, United Kingdom (DP
     AGARWAL);

(4)  AGNIVESH AGARWAL of 42 Hill Street, London WIJ 5NU, United Kingdom
     (AGNIVESH AGARWAL); (together with DP Agarwal the VOLCAN SHAREHOLDERS); and

(5)  ANIL AGARWAL of 42 Hill Street, London WIJ 5NU, United Kingdom (MR
     AGARWAL).

WHEREAS

(A)  The Volcan Shareholders are beneficial owners of the entire issued share
     capital of Volcan.

(B)  Application has been made for the Ordinary Shares in Vedanta to be admitted
to the Official List and to be admitted to trading on the London Stock Exchange.

(C)  Upon Admission:

     (i)   Vedanta will have an authorised share capital of US$40,000,000
           comprising 400,000,000 Ordinary Shares, of which up to 286,000,000
           Ordinary Shares will be issued fully paid or credited as fully paid
           (assuming the Manager's Option is not exercised and excluding the
           Ordinary Shares to be issued under the Reward Plan);

     (ii)  Volcan will be (assuming the Manager's Option is not exercised and
           excluding the Ordinary Shares to be issued under the Reward Plan) the
           beneficial owner of Ordinary Shares representing 53.90 per cent. of
           the aggregate number of votes capable of being cast on a poll at
           general meetings of Vedanta; and

     (iii) Mr Agarwal will be the Chief Executive Officer of Vedanta.

(D)  Volcan, the Volcan Shareholders, Mr Agarwal and Vedanta wish to manage the
relationship between them to ensure that, inter alia, following Admission
Vedanta will comply with paragraph 3.12 of the Listing Rules.

                                                                              GP
<PAGE>
IT IS HEREBY AGREED as follows:

1.   INTERPRETATION AND DEFINITIONS

1.1  In this Agreement unless the context requires otherwise the following words
and expressions shall have the meanings respectively set opposite them:

ADMISSION means admission of the whole of Vedanta's ordinary share capital,
issued and to be issued, to the Official List becoming effective in accordance
with the Listing Rules and the admission of such share capital to trading on the
London Stock Exchange's markets for listed securities;

AGARWAL FAMILY means Mr Agarwal, DP Agarwal and Agnivesh Agarwal, any of their
parents, spouses, children, siblings and their children who are at the relevant
time employees of the Vedanta Group, and the families (as defined in
sub-paragraph II.d(i) of the Listing Rules) of any such person;

ASSOCIATE shall have the meaning ascribed to it in paragraphs 11.1(d) and (e) of
the Listing Rules;

AUDIT COMMITTEE means the audit committee established by the Board;

BASE METALS AND MINERALS means copper, aluminium, alumina, zinc, lead, iron ore,
coal, bauxite and nickel and the minerals from which they are extracted;

BOARD means the Board of Directors of Vedanta;

BUSINESS DAY means any day (other than a Saturday or Sunday) on which banks are
generally open in London for normal business;

CITY CODE means the City Code on Takeovers and Mergers;

COMBINED CODE means the Principles of Good Governance and Code of Best Practice
appended to the Listing Rules;

CONNECTED PERSON shall have the meaning ascribed to it in section 346 of the
Companies Act 1985;

CONTROLLING SHAREHOLDER shall have the meaning ascribed to it in paragraph 3.13
of the Listing Rules;

DIRECTOR means a Director of Vedanta;

DISPOSAL means any offer or sale of, contract to sell, sale of an option or
contract to purchase, purchase of an option or contract to sell, grant of an
option, right or warrant to purchase, or any other transfer or disposal of, any
Ordinary Shares or any securities exchangeable for or convertible into, or
substantially similar to, Ordinary Shares (or any interest therein or in respect
thereof) or any rights arising from or attaching to any such Ordinary Shares at
any time, or the entry into any swap or other agreement that transfers, in whole
or in part, any of the economic consequences of ownership of Ordinary Shares, or
the entry into any other transaction with the same economic effect

                                                                          Page 2
<PAGE>
as, or the agreement to do, or the announcement or publicising of the intention
to do any of the foregoing, whether any such transaction is to be settled by
delivery of Ordinary Shares or such other securities, in cash or otherwise;

INDEPENDENT DIRECTOR means a Director who is not a director, officer or employee
of Volcan or any of its Associates or a connected person of any member of the
Agarwal family or any of their Associates and is free from any business or other
relationship with any member of the Agarwal family, Volcan or any of their
Associates which could materially interfere with the exercise of his independent
judgment in matters concerning Vedanta. For the avoidance of doubt, the persons
who, at the date of this Agreement, are Independent Directors are Mr Brian
Gilbertson, Mr Peter Sydney-Smith, Mr P Chidambaram, Mr Michael Fowle and Sir
David Gore-Booth;

LISTING RULES means the Listing Rules made by the UK Listing Authority under
Part VI of the Financial Services and Markets Act 2000;

LOCK UP AGREEMENT means the agreement between Volcan, J.P Morgan Securities
Ltd., HSBC Bank plc and others dated 5 December 2003 pursuant to which Volcan
agrees not to sell or otherwise dispose of its Ordinary Shares for six months
except under certain circumstances;

LONDON STOCK EXCHANGE means London Stock Exchange plc;

MANAGER'S OPTION means the option granted by Vedanta to J.P. Morgan Securities
Ltd. as described in Vedanta's listing particulars dated 5 December 2003;

MYANMAR PROJECT means the interest of Sterlite Gold Ltd in certain exploration
blocks in upper Myanmar, being Block 2 in the Wuntho Massif north of Mandalay,
and two contiguous blocks, numbers 10 and 11, located in the Shan Scarp, east of
Mandalay;

NOMINATIONS COMMITTEE means the nominations committee established by the Board;

OFFICIAL LIST means the Official List of the UK Listing Authority;

ORDINARY SHARES means the ordinary shares of US$0.10 each in the capital of
Vedanta;

PARENT UNDERTAKING shall have the meaning ascribed to it in section 258 of the
Companies Act 1985;

REMUNERATION COMMITTEE means the remuneration committee established by the
Board;

SHARED SERVICES AGREEMENT means the agreement between Vedanta, Sterlite Optical
Technologies Limited and Sterlite Gold Ltd dated 5 December 2003 governing the
provision of certain administrative and other services by the Vedanta Group and
the allocation of the costs of providing such services;

SHAREHOLDER means a holder for the time being of Ordinary Shares (and
SHAREHOLDERS shall be construed accordingly);

SUBSIDIARY AND HOLDING COMPANY shall have the meanings ascribed to them by
section 736 of the Companies Act 1985;

                                                                          Page 3
<PAGE>
SUBSIDIARY UNDERTAKING shall have the meaning ascribed to it by section 258 of
the Companies Act 1985;

TAX includes penalties, charges and interest relating to tax (save insofar as
attributable to the delay or default after Admission of a member of the Vedanta
Group);

TAX INDEMNITY means the indemnity agreement dated 1 December 2003 between
Volcan, DP Agarwal, Agnivesh Agarwal and Vedanta, pursuant to which Volcan
agrees to indemnify Vedanta against certain tax liabilities;

UK LISTING AUTHORITY means the Financial Services Authority acting in its
capacity as the competent authority for the purposes of Part VI of the Financial
Services and Markets Act 2000 and in the exercise of its functions in respect of
the admission to the Official List otherwise in accordance with Part VI of that
Act, including where the context so permits any committee, employee, officer or
servant to whom any function of the UK Listing Authority may for the time being
be delegated;

VEDANTA GROUP means Vedanta and its subsidiary undertakings from time to time;
and

VOLCAN GROUP means the Volcan Shareholders, Volcan and the subsidiary
undertakings, parent undertakings and fellow subsidiary undertakings of Volcan
from time to time but shall not include members of the Vedanta Group.

1.2  Clause headings and the table of contents are inserted for ease of
reference only and shall not in any way affect the interpretation of this
Agreement.

1.3  References to Clauses are to be construed as references to the Clauses of
this Agreement.

1.4  References to any other document or any provision thereof shall be
construed as references thereto as it is in force for the time being and as
amended or supplemented or replaced from time to time in accordance with the
terms thereof or, as the case may be, with the agreement of the relevant parties
or the consent of a specified party.

1.5  Words importing the plural shall include the singular and vice versa and
words importing the masculine gender shall include the feminine and vice versa
and words denoting persons shall include companies.

1.6  References to the City Code, the Combined Code, the Listing Rules and to
any statutes or statutory provisions include any code, regulation, statute or
statutory provision which amends, extends, consolidates or replaces the same, or
which has been amended, extended, consolidated or replaced by the same, and
shall include any orders, regulations, instruments or other subordinate
legislation made under the relevant statute or statutory provision.

2.   CONDITIONALITY

2.1  This Agreement is conditional upon, and shall come into force on,
Admission.

                                                                          Page 4
<PAGE>

2.2  If the condition contained in Clause 2.1 is not satisfied, or shall have
become incapable of being satisfied, on or before 31 December 2003 (or such
other later date as may be agreed in writing between the parties), this
Agreement shall never come into effect.

3.   RELATIONSHIP BETWEEN THE VOLCAN GROUP AND THE VEDANTA GROUP

GENERAL

3.1  Volcan, the Volcan Shareholders and Mr Agarwal undertake to Vedanta that
they shall exercise all of their powers, including to procure so far as they are
properly able that each of the members of the Volcan Group, each member of the
Agarwal family and any of their respective Associates and connected persons
shall exercise all of their respective powers, to ensure compliance with the
provisions in Clauses 3.2 to 3.22. Vedanta shall at all times exercise all of
its powers to ensure that the other members of the Vedanta Group comply with the
provisions in Clauses 3.2 to 3.22. Notwithstanding the foregoing, no provision
of this Agreement shall prevent Volcan from exercising the voting rights
attaching to its Ordinary Shares as Volcan, in its absolute discretion, sees
fit, except where to do so would result in a breach of the terms of this
Agreement.

AUTONOMY

3.2  The parties will ensure that Vedanta is capable at all times of carrying on
its business independently of Volcan, the Agarwal family and any of their
Associates as required by the Listing Rules and in particular paragraphs 3.12
and 9.34 of the Listing Rules. The parties also agree that during the period of
this Agreement all transactions and relationships between (i) any member of the
Volcan Group (or any Associate of Volcan or any connected person of the Volcan
Shareholders or the Agarwal family or any Associates of the Agarwal family) and
(ii) any member of the Vedanta Group will be at arm's length and on a normal
commercial basis, including, for the avoidance of doubt, all matters which are
the subject of the Shared Services Agreement.

3.3  The parties agree that all of the applicable provisions of the Listing
Rules shall be complied with in connection with Vedanta, including, without
limitation, the provisions relating to transactions with related parties set out
in Chapter II, the provisions of paragraphs 3.12 and 9.34 in relation to
controlling shareholders, and the provisions of paragraph 3.9 in relation to
conflicts of directors.

THE BOARD

3.4  The business and affairs of Vedanta shall (subject to this Clause 3) be
managed by the Board in accordance with the Articles of Association of Vedanta
and all applicable laws and for the benefit of the Shareholders as a whole.

INDEPENDENCE OF THE BOARD

3.5  There shall at all times be a majority of Independent Directors on the
Board. The Nominations Committee and any other committee of the Board (other
than the Audit Committee or the Remuneration Committee or any committee which
may be established by the Board in connection with a specific transaction, the
constitution of which is approved by the Board) to which

                                                                          Page 5
<PAGE>
significant powers, authorities or discretions are delegated shall at all times
consist of a majority of Independent Directors. The Remuneration and Audit
Committees shall at all times consist only of non-executive Directors.

3.6  No person shall be appointed as a Director if such appointment would result
in contravention of Clause 3.5, and Mr Agarwal, Volcan and the Volcan
Shareholders hereby undertake to Vedanta to procure the exercise of the voting
rights attaching to the Ordinary Shares held (from time to time, directly or
indirectly) by Mr Agarwal, the Volcan Shareholders, members of the Volcan Group
or any of their respective Associates so that if an Independent Director ceases
to be a Director of Vedanta for any reason, such Independent Director will (only
insofar as may be necessary to ensure that there will be a majority of
Independent Directors on the Board) be replaced by a new executive or
non-executive Director, as the case may be, who is also an Independent Director.

CORPORATE GOVERNANCE

3.7  The parties agree that, save to the extent required by law or as otherwise
contemplated in this Agreement, they shall exercise their powers so that Vedanta
is managed in accordance with the principles of good governance set out in the
Combined Code and that the provisions of the Code of Best Practice set out in
the Combined Code are complied with by Vedanta. For this purpose, the definition
of Independent Directors in this Agreement is not to be taken as contemplating
an intention to manage Vedanta otherwise than in accordance with the Combined
Code, in relation to the composition of the Board and its committees.

APPROVAL OF TRANSACTIONS WITH VOLCAN

3.8  In the event that any member of the Vedanta Group intends to enter into,
vary, amend, novate or abrogate any contract, arrangement or transaction with Mr
Agarwal or any entity of which Mr Agarwal or any member of the Agarwal family or
any of their Associates is a controlling shareholder, including but not limited
to Sterlite Optical Technologies Inc, Sterlite Gold Ltd, Sterlite Optical
Technologies Limited and any member of the Volcan Group, unless the Independent
Directors agree otherwise, Mr Agarwal and any Director who is not an Independent
Director shall not be permitted to vote on any resolution of the Board or of a
committee of the Board to approve the entering into, varying, amending, novating
or abrogating any such contract, arrangement or transaction. The quorum for any
meeting of the Board or committee of the Board to consider such a resolution
shall be three Directors, at least two of whom shall be Independent Directors.

3.9  In the event that any member of the Vedanta Group intends to enforce, or is
considering the enforcement of, any contract, arrangement or transaction with Mr
Agarwal or any entity of which Mr Agarwal or any member of the Agarwal family or
any of their Associates is a controlling shareholder, including but not limited
to Sterlite Optical Technologies Inc, Sterlite Gold Ltd, Sterlite Optical
Technologies Limited and any member of the Volcan Group which, for the avoidance
of doubt, shall include the enforcement of this Clause 3.9 and the Tax
Indemnity, Mr Agarwal and any Director who is not an Independent Director shall
not be permitted to vote on any resolution of the Board or of a committee of the
Board in connection with such enforcement. The quorum for any meeting of the
Board or committee of the Board to consider such a resolution shall be three
Directors, at least two of whom shall be Independent Directors.

                                                                          Page 6
<PAGE>

3.10 In the event that any member of the Vedanta Group intends to enter into,
vary, amend, novate or abrogate any contract, arrangement or transaction with Mr
Agarwal or any entity of which Mr Agarwal or any member of the Agarwal family or
any of their Associates is a controlling shareholder, including but not limited
to Sterlite Optical Technologies Inc, Sterlite Gold Ltd, Sterlite Optical
Technologies Limited and any member of the Volcan Group, Volcan shall abstain
from voting in relation to the Ordinary Shares owned by Volcan on any resolution
of Vedanta to approve the entering into, varying, amending, novating or
abrogating any such contract, arrangement or transaction.

VOLCAN'S RIGHT TO BE CONSULTED ON AND TO APPOINT DIRECTORS

3.11 Vedanta shall procure that Volcan is consulted in relation to any proposal
for the appointment of an additional or replacement Director, or any proposal to
remove a Director from office and Vedanta shall ensure that all such
consultations are conducted during a reasonable period of time prior to the
proposal.

3.12 For so long as this Agreement continues in force, Volcan shall be entitled,
by giving notice to Vedanta, to nominate for appointment to the Board from time
to time up to such number of Directors as is one less than the number of
Independent Directors.

3.13 Within 10 Business Days after receiving notice from Volcan nominating a
person for appointment as a Director under Clause 3.12, Vedanta shall procure
the appointment of the person nominated by Volcan as a Director.

3.14 Except as otherwise required by law, Vedanta shall procure that each
Director appointed following a nomination by Volcan under Clause 3.12 shall (if
that person remains a Director at the relevant time and is willing to stand for
re-election) be recommended for re-election at each general meeting of Vedanta
at which that Director is required to retire and seek re-election, unless Volcan
gives notice that it does not wish the person to be nominated for re-election.

3.15 Volcan may, from time to time, give notice to Vedanta that it wishes a
Director appointed following a nomination by Volcan under Clause 3.12, to be
removed as a Director and within 10 Business Days after receipt of that notice,
Vedanta shall procure that the person is removed as a Director. Volcan shall
indemnify Vedanta in full in respect of any claim made against Vedanta by any
Director arising from his or her removal under this Clause 3.15 that has not
been endorsed by a majority of the Independent Directors.

3.16 If a Director nominated by Volcan under Clause 3.12 resigns, is not
re-elected as a Director or is removed as a Director in accordance with Clause
3.15 or otherwise, Vedanta shall procure that such other person as may be
nominated by Volcan shall be appointed as a Director in accordance with Clause
3.12.

3.17 Subject to Clauses 4.2 to 4.6, any person appointed as a Director following
nomination by Volcan pursuant to Clause 3.12 shall be entitled to pass to Volcan
or any member of the Volcan Group any information which may come into his
possession through his position as a Director subject to such information:

                                                                          Page 7
<PAGE>
(a)  being subject to the confidentiality undertakings on the part of Volcan
     contained in Clause 4; and

(b)  not including sensitive and confidential information relating to Vedanta's
     negotiating position in relation to any contract, arrangement or
     transaction with a member of the Volcan Group the disclosure of which would
     be prejudicial to Vedanta's negotiating position.

HOLDING OF INTERESTS IN BASE METALS AND MINERALS

3.18 Volcan, Mr Agarwal and the Volcan Shareholders each represent and warrant
to Vedanta that except for the Myanmar Project, they do not currently (whether
alone or jointly with others, or whether as principal, agent, shareholders or
otherwise and whether for their own benefit or the benefit of others) directly
or indirectly, own or otherwise have interests in, any company, business,
business operation or other entity or enterprise which engages in the smelting,
refining, mining or sale of any base metals or minerals, otherwise than through
Vedanta or another member of the Vedanta Group.

3.19 Subject to Clause 3.20, Volcan, Mr Agarwal and the Volcan Shareholders each
undertake for the duration of this Agreement that they shall only and shall
procure (to the extent they are able) that each member of the Volcan Group, each
other member of the Agarwal family and each of their respective Associates shall
only (whether alone or jointly with others, or whether as principal, agent,
shareholders or otherwise and whether for their own benefit or the benefit of
others) directly or indirectly, acquire or otherwise invest in, any company,
business, business operation or other entity or enterprise which engages, in the
smelting, refining or mining of base metals or minerals, through Vedanta or
another member of the Vedanta Group.

3.20 The restrictions in Clause 3.19 shall not prevent, restrict or limit:

(a)  the acquisition or ownership by Volcan, Mr Agarwal, the Volcan Shareholders
     or their Associates of:

     (i)  any securities of Sterlite Gold Ltd; or

     (ii) not more than five per cent in aggregate of any class of shares,
          debentures or other securities in issue from time to time of any
          company which engages in the smelting, refining or mining of base
          metals or minerals which is for the time being listed on any stock
          exchange; or

(b)  the acquisition or ownership, directly or indirectly, by Volcan, Mr
     Agarwal, the Volcan Shareholders or their respective Associates (each an
     INTERESTED PARTY) of, or of any interest in, a base metal or mineral
     property or asset (together with any associated property, plant and
     equipment), not being adjacent or geographically proximate to an existing
     property or operation of the Vedanta Group such as to give them operational
     synergies, the acquisition cost (including assumed indebtedness) of which,
     including any related capital expenditures committed as at the date of
     acquisition for the succeeding 12 months, is equal to US$50 million or
     less, for which purpose any acquisitions of two or related or more adjacent
     base metal or mineral properties or assets shall be aggregated when
     calculating the acquisition cost, provided that the relevant Interested
     Party (i) is not an officer or director of a Vedanta

                                                                          Page 8
<PAGE>
     Group company; and (ii) has procured that the opportunity to acquire such
     property or asset is first made available to the Vedanta Group, with a
     reasonable period for the Independent Directors to consider the opportunity
     (who shall give the matter their prompt and diligent attention and respond
     without undue delay), on terms no less favourable than those on which they
     are proposed to be acquired by the Interested Party and a majority of the
     Independent Directors has determined that the Vedanta Group should not make
     that acquisition.

3.21 The provisions of Clause 3.19 are believed by all parties to this Agreement
to be reasonable and legitimate to protect the interests of Vedanta. If any such
provision is subsequently judged to be invalid or unenforceable, but would have
been enforceable had it been subject to some restriction in duration or
geographical scope, then the provision will take effect subject to such
restriction.

3.22 Clause 3.19 shall not be construed as requiring any of the Volcan
Shareholders, members of the Agarwal family or their respective Associates who
is a director of any public company outside the Vedanta Group which is for the
time being listed on any stock exchange, to exercise any power or authority in
that capacity to procure compliance by such company with Clause 3.19, provided
that he abstains from voting in favour of any act or proposal which would
otherwise cause him to be in breach of Clause 3.19.

STANDSTILL

3.23 Volcan undertakes not to effect a Disposal during the period starting on
the date of Admission and ending six months thereafter, other than pursuant to a
transaction relating to the whole of the issued share capital of Vedanta, or if
such Disposal is permitted pursuant to the Lock Up Agreement and has the prior
agreement of a majority of the Independent Directors, such agreement not to be
unreasonably withheld or delayed.

UNDERTAKINGS OF THE VOLCAN SHAREHOLDERS

3.24 Each of the Volcan Shareholders undertakes to Vedanta that he shall not
transfer or otherwise dispose of any interest in Volcan to any member of the
Agarwal family or to any person he knows, or has reasonable grounds to believe,
is a connected person of any member of the Agarwal family unless that person
becomes a party to this Agreement by entering into a Deed of Adherence in the
form contained in Appendix A to this Agreement.

4.   INFORMATION

4.1  Confidential Information, if disclosed in written form, shall be clearly
marked with the discloser's name and "confidential", "proprietary" or the
substantial equivalent thereof. If orally disclosed, Confidential Information
shall be summarised in written form and clearly marked with the discloser's
name, "confidential", "proprietary" or the substantial equivalent thereof and
delivered to the recipient within thirty days from the date of disclosure.

4.2  Confidential Information shall be maintained as confidential by the
receiving party and may only be disclosed:

(a)  to such of its, or its Associates', employees, agents and contractors who
     reasonably require such disclosure;

                                                                          Page 9
<PAGE>
(b)  to its legal, accounting, insurance and other professional advisers;

(c)  to other Volcan Group companies (in the case of Volcan) and to other
     Vedanta Group companies (in the case of Vedanta);

(d)  to the tax or VAT authorities, any regulatory authority, and any other
     governmental or public authority or officer, but only to the extent that
     such persons require such disclosure for the proper discharge of their
     functions;

(e)  where required, in connection with any legal proceedings; and

(f)  in compliance with any law or regulation, or if required by or for the
     purpose of listing, or maintaining a listing of, securities on any stock
     exchange.

4.3  For the purpose of this Clause 4, CONFIDENTIAL INFORMATION means any
information of a secret or confidential nature acquired from and concerning
another party and its subsidiary undertakings and holding companies from time to
time or its or their affairs, save that no party shall be obliged to maintain in
confidence any such information received from another party if the information:

(a)  was in the possession of or was known to such party prior to its receipt
     from the other party (other than through a breach of this Clause 4); or

(b)  is independently developed by such party without the utilisation of such
     Confidential Information; or

(c)  is or becomes public knowledge without the fault of such party; or

(d)  is or becomes available to such party from a source other than the other
     party in circumstances where the party concerned is not aware that
     disclosure has been made in breach of an obligation of confidentiality.

4.4  Each party shall procure that any of their respective agents, employees or
professional advisers or, in the case of Volcan or Vedanta, the members of the
Volcan Group or of the Vedanta Group (as applicable) or their respective agents,
employees or professional advisers coming into receipt of Confidential
Information shall be informed upon receipt that such information is Confidential
Information and shall not divulge such information to any third party save in
the circumstances set out in Clause 4.2.

4.5  Each party shall (and shall procure any professional advisers, agents or
employees or, in the case of Volcan or Vedanta, the members of the Volcan Group
or the Vedanta Group (as applicable) or their respective agents, employees or
professional advisers in receipt of such Confidential Information shall)
forthwith upon written request by the other party:

(a)  return all reports, documents, plans, computer disks or software or other
     media by or through which Confidential Information has been supplied to
     such party by the other party insofar as it relates exclusively to such
     party or its business or affairs; and

                                                                         Page 10
<PAGE>
(b)  destroy all Confidential Information which has been reproduced (in whatever
     form) by the party and, if required, swear a declaration in a form
     satisfactory to the requesting party with regard to such request;

provided that the provisions of this Clause 4.5 shall not apply to any Director
(i) while such person remains a Director to the extent that such Confidential
Information is information obtained in such person's capacity as a Director or
(ii) who reasonably requires such information to demonstrate that he has not
breached his fiduciary duties as a Director of the Company. Notwithstanding the
provisions of this Clause 4.5, each party shall be entitled to retain one copy
of any Confidential Information it has received for its records and each of its
advisers shall be entitled to retain such copies of any Confidential Information
if and as required by law or applicable regulation.

4.6  The terms and conditions of this Clause 4 shall survive the termination for
any reason whatsoever of this Agreement for a period of two years.

5.   VEDANTA'S CONSTITUTION

Volcan and the Volcan Shareholders undertake to Vedanta that they shall not, and
shall procure that no other member of the Volcan Group shall, exercise any of
their voting or other rights and powers to procure any amendment to the Articles
of Association of Vedanta which would be inconsistent with the provisions of
this Agreement.

6.   OVERRIDING OBLIGATIONS

For the avoidance of doubt, the obligations of each of Vedanta and Volcan and
their subsidiary undertakings pursuant to this Agreement shall at all times be
subject to all relevant legal and regulatory requirements and obligations of the
parties in the United Kingdom, the Bahamas, India or elsewhere including,
without limitation, the obligations of the parties pursuant to the requirements
of the Companies Act 1985, the UK Listing Authority and the London Stock
Exchange and no party shall be required to take any action in breach of any such
requirement or obligation.

7.   TERMINATION OF AGREEMENT

7.1  This Agreement shall continue in full force and effect for so long as the
Ordinary Shares are listed on the Official List and traded on the London Stock
Exchange (which, for the purposes of this Clause 7, includes any period of
suspension of the listing or trading of the Ordinary Shares). If the Ordinary
Shares cease to be listed on the Official List and traded on the London Stock
Exchange, then this Agreement shall terminate and cease to be of any effect save
that this shall not relieve any party from any liability or obligation in
respect of any matters, undertakings or conditions which shall not have been
done, observed or performed by that party prior to such termination.

7.2  When each member of the Volcan Group individually and any members of the
Volcan Group acting jointly by agreement cease to be a controlling shareholder
in Vedanta, then this Agreement shall terminate and be of no further effect in
respect of Volcan, save that this shall not relieve any party from any liability
or obligation in respect of any matters, undertakings or conditions which shall
not have been done, observed or performed by that party prior to such
termination.

                                                                         Page 11
<PAGE>
7.3  If DP Agarwal, Agnivesh Agarwal or Mr Agarwal individually or any of them
acting jointly by agreement ceases to be a controlling shareholder in Vedanta or
Volcan, then this Agreement shall be of no further effect in respect of that
party, save that this shall not relieve any such party from any liability or
obligation in respect of any matters, undertakings or conditions which shall not
have been done, observed or performed by that party prior to such termination.
Should this Agreement cease to be of any effect in respect of DP Agarwal,
Agnivesh Agarwal or Mr Agarwal under this Clause 7.3, then the definition of
"Agarwal family" in Clause 1.1 shall be amended to delete the reference to that
person.

7.4  Clauses 4 and 11 to 18 shall survive the termination of this Agreement for
any reason.

8.   AMENDMENT AND WAIVER

This Agreement may be amended or modified, and any of the terms, covenants,
representations, warranties or conditions may be waived, only by a written
instrument executed by the parties or, in the case of a waiver, by a notice
signed by the party waiving compliance.

9.   ASSIGNMENT

None of the parties may assign any of their rights or obligations under this
Agreement in whole or in part, except that Volcan or the Volcan Shareholders may
assign their rights to an Associate with the prior consent of Vedanta, subject
to any assignee becoming a party to this Agreement by entering into a Deed of
Adherence in the form contained in Appendix A to this Agreement.

10.  SEVERABILITY

If any provision of this Agreement is held by any court or other competent
authority to be void or unenforceable in whole or in part the other provisions
of this Agreement and the remainder of the effective provisions shall continue
to be valid. The parties shall then use all reasonable endeavours to replace the
invalid or unenforceable provisions with a valid and enforceable substitute
provision the effect of which is as close as possible to the intended affect of
the invalid or unenforceable provision.

11.  ENTIRE AGREEMENT

In the event of any conflict or inconsistency between this Agreement and the
Articles of Association of Vedanta from time to time or between this Agreement
and any other agreement between the parties, this Agreement shall prevail
provided that for the avoidance of doubt the rights and obligations of the
parties under any other agreement between them will not be affected by any
obligation under this Agreement ceasing to apply. This Agreement supersedes all
previous agreements, arrangements and understandings between the parties in
relation to the subject matter of this Agreement. The parties agree that no
party has entered into this Agreement in reliance upon any representation,
warranty or undertaking of any other which is not expressly set out or referred
to in this Agreement. Nothing in this Clause shall exclude any liability for, or
remedy in respect of, fraudulent misrepresentation.

                                                                         Page 12
<PAGE>
12.  LAW AND DISPUTES

12.1 This Agreement shall be governed by and construed in accordance with the
laws of England.

12.2 The parties agree that the courts of England are to have non-exclusive
jurisdiction to settle any dispute (including claims for set-off and
counterclaims) which may arise in connection with the creation, validity,
effect, interpretation or performance of, or the legal relationships established
by, this Agreement or otherwise arising in connection with this Agreement.

13.  SERVICE OF PROCESS

13.1 Volcan, Mr Agarwal and each of the Volcan Shareholders irrevocably consent
to service of process or any other documents in connection with proceedings in
any court by facsimile transmission, personal service, delivery at any address
specified in this Agreement or any other usual address, mail or in any other
manner permitted by English law, the law of the place of service or the law of
the jurisdiction where proceedings are instituted.

13.2 Volcan, Mr Agarwal and each of the Volcan Shareholders shall at all times
maintain an agent for service of process and any other documents in proceedings
in England or any other proceedings in connection with this Agreement. Such
agent shall be Mr Vinod Shah of Duratube Limited, Central Way, Feltham,
Middlesex TW14 DAJ in the case of each of Volcan, Mr Agarwal, DP Agarwal and
Agnivesh Agarwal and any writ, judgement or other notice of legal process shall
be sufficiently served on the appropriate party if delivered to such agent at
its address for the time being. Volcan, Mr Agarwal, DP Agarwal and Agnivesh
Agarwal undertake not to revoke the authority of the above agent and if, for any
reason, Vedanta requests Volcan, Mr Agarwal, DP Agarwal and Agnivesh Agarwal to
do so they shall promptly appoint another such agent with an address in England
and advise Vedanta. If, following such a request, Volcan, Mr Agarwal, DP Agarwal
or Agnivesh Agarwal, as appropriate, fails to appoint another agent, Vedanta
shall be entitled to appoint one on behalf of the relevant party at the expense
of such party.

14.  NOTICES

14.1 Any notice under this Agreement shall be in writing and signed by or on
behalf of the party giving it and may be served personally or by prepaid first
class letter (if to an address in the same country) or air-mail (if to an
address in a different country) or telex or fax (and, in the case of fax,
confirmed by prepaid first class letter) to the address as follows:

<Table>
<S>                                    <C>
IF TO VOLCAN:                          42 Hill Street, London WIJ 5NN, United Kingdom

Attention:                             Vinod Shah

Fax:                                   +44 20 7629 7426

IF TO VEDANTA:                         Hill House, 1 Little New Street, London EC4A 3TR, United Kingdom

Attention:                             Company Secretary

Fax:                                   +44 20 7629 7426
</TABLE>

                                                                         Page 13
<PAGE>
<TABLE>
<S>                                    <C>
IF TO MR AGARWAL:                      42 Hill Street, London WIJ 5NN, United Kingdom

Attention:                             Anil Agarwal

Fax:                                   +44 20 7629 7426

IF TO DP AGARWAL:                      42 Hill Street, London WIJ 5NN, United Kingdom

Attention:                             DP Agarwal

Fax:                                   +44 20 7629 7426

IF TO AGNIVESH AGARWAL:                42 Hill Street, London WIJ 5NN, United Kingdom

Attention:                             Agnivesh Agarwal

Fax:                                   +44 20 7629 7426
</Table>

or such other address as shall previously have been notified by one party to the
others under this Agreement, on not less than ten (10) days' prior written
notice. Any such notice shall be deemed to have been received, in the case of
notice served by first class post on an addressee in the same country, 48 hours
(disregarding days which are not Business Days) after posting, in the case of
air-mail to an addressee in a different country, on delivery to the correct
address and in the case of a fax, at the time of successful transmission as
identified in a transmission report. In the case of notices given to Volcan, Mr
Agarwal, DP Agarwal or Agnivesh Agarwal, copies of such notices shall also be
sent to the attention of John Kolada at Blake, Cassels & Graydon LLP, Commerce
Court West, Toronto, ON M5L 1A9, Fax number +1 416 863 2653.

14.2 Save as otherwise provided herein, any notice or other communication
received on a day which is not a Business Day or after 5 p.m. local time on any
Business Day shall be deemed to be received on the following Business Day.

15.  COUNTERPARTS

This Agreement may be executed in one or more counterparts each signed by each
of the parties and such counterparts shall together constitute one document.

16.  COSTS

Each of the parties shall pay its own costs incurred in connection with the
negotiation, preparation and implementation of this Agreement.

17.  NO PARTNERSHIP

Nothing in this Agreement shall constitute or be deemed to constitute a
partnership or joint venture between the parties.

                                                                         Page 14
<PAGE>
18.  THIRD PARTIES

A person who is not a party to this Agreement may not enforce any of its terms
under the Contracts (Rights of Third Parties) Act 1999.

                                                                         Page 15
<PAGE>
AS WITNESS this Agreement has been signed by the duly authorised representatives
of the parties the day and year first before written.

Executed as a Deed                             )        /S/ ANDREW WOOLLEY
by VEDANTA RESOURCES PLC                       )        /S/ PETER SYDNEY-SMITH
acting by two directors/secretary              )

Executed as a Deed                             )        /S/ ISAAC COLLIE
by VOLCAN INVESTMENTS                          )        /S/ SHANIQUA MCPHEE
LIMITED acting by two directors                )

Executed as a Deed                             )
by DWARKAPRASAD AGARWAL                        )        /S/ DWARKAPRASAD AGARWAL
in the presence of:                            )

Witness signature: /s/ Ramesh Venkat

Name: RAMESH VENKAT

Address: Dhanras Mahal, CSM Road,
         Apollo Bunder, Mumbai 400 005, India

Executed as a Deed                             )
by AGNIVESH AGARWAL                            )        /S/ AGNIVESH AGARWAL
in the presence of:                            )

Witness signature: /s/ Shivananda Imadi

Name: SHIVANANDA IMADI

Address: 2nd Floor, Core 6, Scope Office Complex
         7 Lodi Road, New Delhi - 110003

Occupation:

                                                                         Page 16
<PAGE>
Executed as a Deed                             )
by ANIL AGARWAL                                )        /S/ ANIL AGARWAL
in the presence of:                            )

Witness signature: /s/ Naomi James

Name: NAOMI JAMES

Address: 65 Fleet St, London

Occupation: Solicitor

                                                                         Page 17
<PAGE>
                                       200

                                  [COVENANTOR]

                              VEDANTA RESOURCES PLC

                                  ANIL AGARWAL

                        [CONTINUING VOLCAN SHAREHOLDERS]

                        =================================

                        DEED OF ADHERENCE TO RELATIONSHIP
                                    AGREEMENT

                        =================================

                                                                         Page 18
<PAGE>
                                   APPENDIX A

                                DEED OF ADHERENCE

THIS DEED is made on  , 200 .

BY [Transferee of shares in Volcan] (the COVENANTOR); and

BY each of the persons in the schedule to this Deed (the SCHEDULE).

WHEREAS:

(A)  On  , 2003 the persons in the Schedule entered into a Relationship
Agreement to regulate the relationship between Vedanta and the other persons in
the Schedule to ensure that Vedanta complies with paragraph 3.12 of the Listing
Rules.

(B)  The Covenantor wishes to become a party to the Relationship Agreement and
the immediately upon acquiring certain shares in Vedanta and wishes to amend the
Relationship Agreement with the effect that the Covenantor becomes a party
thereto and as such assumes the rights and obligations of a Volcan Shareholder
under the Relationship Agreement.

NOW THIS DEED WITNESSES as follows:

INTERPRETATION

1.  Words and expressions defined in the Relationship Agreement shall, unless
the context otherwise requires, have the same meanings when used in this Deed.

ADHERENCE

2.  The Covenantor hereby covenants to and undertakes with each of the other
persons in the Schedule and with each such other person who may from time to
time expressly adhere to the Relationship Agreement (by way of execution of a
deed or by way of novation) to be bound by and comply in all respects with the
Relationship Agreement, and to assume the benefits of the Relationship
Agreement, as if the Covenantor had executed the Relationship Agreement and was
named as an original party thereto.

RIGHTS SEVERAL

3.  The rights of Vedanta and the other parties to the Relationship Agreement
under this Deed shall be in all respects several and the failure of anyone or
more of them to perform obligations under the Relationship Agreement shall in no
way affect the rights of the others of them under or in connection with this
Deed. It shall not be necessary for any party to be joined as an additional
party in any proceedings to protect or enforce its rights and interests under
this Deed.

                                                                         Page 19
<PAGE>
INVALIDITY

4.  If any provision of this Deed becomes invalid, illegal or unenforceable in
any respect under any law, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired.

CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

5.  No person who is not a party to this Deed shall have the right to enforce
any of its terms pursuant to the Contracts (Rights of Third Parties) Act 1999.

AGENT FOR SERVICE OF PROCESS

6.  The Covenantor shall at all times maintain an agent for service of process
and any other documents in proceedings in England or any other proceedings in
connection with this Deed. Such agent shall be   United Kingdom and any writ,
judgment or other notice of legal process shall be sufficiently served on the
Covenantor if delivered to such agent at its address for the time being. The
Covenantor irrevocably undertakes not to revoke the authority of the above agent
and if, for any reason, Vedanta requests the Covenantor to do so, the Covenantor
shall promptly appoint another such agent with an address in England and so
advise Vedanta. If following such request, the Covenantor fails to appoint
another agent, Vedanta shall be entitled to appoint one on behalf of the
Covenantor at the expense of the Covenantor.

NOTICES

7.  For the purpose of the Relationship Agreement, the Covenantor's address for
notices shall be as follows:

Address:

Fax No:

Addressed for the personal attention of:

SUBMISSION TO JURISDICTION

8.  The Courts of England are to have non-exclusive jurisdiction to settle any
disputes which may arise in connection with this Deed.

GOVERNING LAW

9.  This Deed shall be governed by and construed in accordance with English law.

                                                                         Page 20
<PAGE>
                                    SCHEDULE

VEDANTA RESOURCES PLC

VOLCAN INVESTMENTS LIMITED

ANIL AGARWAL

[INSERT NAMES OF CONTINUING VOLCAN SHAREHOLDERS]

                                                                         Page 21
<PAGE>
Executed as a Deed                                )
by [COVENANTOR]                                   )
[acting by two directors]                         )

Executed as a Deed                                )
by VEDANTA RESOURCES PLC                          )
acting by two directors                           )

Executed as a Deed                                )
by VOLCAN INVESTMENTS                             )
LIMITED acting by two directors                   )

EXECUTED as a Deed by _________                   )
ANIL AGARWAL                                      )

EXECUTED as a Deed by _________                   )
[continuing Volcan Shareholders]                  )

                                                                         Page 22
<PAGE>
                                  [COVENANTOR]

                              VEDANTA RESOURCES PLC

                                  ANIL AGARWAL

                        [CONTINUING VOLCAN SHAREHOLDERS]

                        =================================

                        DEED OF ADHERENCE TO RELATIONSHIP
                                    AGREEMENT

                        =================================

                                                                         Page 23
<PAGE>
                                    AMENDMENT

THIS DEED OF AMENDMENT OF THE RELATIONSHIP AGREEMENT is made on 25 November 2004

BETWEEN

(1)  VEDANTA RESOURCES PLC, a public limited company (registered number
     04740415) incorporated under the laws of England whose registered office is
     at Hill House, 1 Little New Street, London EC4A 3TR, United Kingdom
     (VEDANTA);

(2)  VOLCAN INVESTMENTS LIMITED, a company incorporated under the laws of the
     Bahamas whose registered office is at Suite 61 Grosvenor Close, Shirley
     Street, Nassau, Island of New Providence, Bahamas (VOLCAN);

(3)  DWARKAPRASAD AGARWAL of 42 Hill Street, London WIJ 5NU, United Kingdom (DP
     AGARWAL);

(4)  AGNIVESH AGARWAL of 42 Hill Street, London WIJ 5NU, United Kingdom
     (AGNIVESH AGARWAL); (together with DP Agarwal the VOLCAN SHAREHOLDERS); and

(5)  ANIL AGARWAL of 42 Hill Street, London WIJ 5NU, United Kingdom (MR
     AGARWAL), (together the PARTIES).

WHEREAS

The Parties wish to replace the term Independent Director with the term
Non-Volcan Director and amend the definition thereof in the relationship
agreement entered into by them as a deed on 5 December 2003 (the Relationship
Agreement) as set out in this Deed.

IT IS HEREBY AGREED as follows:

1.   INTERPRETATION AND DEFINITIONS

Unless the context requires otherwise, the provisions of clause 1 of the
Relationship Agreement shall apply to this Deed.

2.   AMENDMENT TO THE RELATIONSHIP AGREEMENT

2.1  With effect from the date of this Deed:

     (a)  the defined term Independent Director shall wherever it occurs in the
          Relationship Agreement be replaced by the defined term Non-Volcan
          Director;

     (b)  the definition of Independent Director in clause 1.1 of the
          Relationship Agreement shall be amended by replacing the existing
          definition in its entirety with the following:

                                                                         Page 24
<PAGE>
          "NON-VOLCAN DIRECTOR means a Director who is not a member of the
          Agarwal family, a director, officer or employee of Volcan or any of
          its Associates or a connected person of any member of the Agarwal
          family or any of their Associates and is free from any business or
          other relationship with any member of the Agarwal family, Volcan or
          any of their Associates which could materially interfere with the
          exercise of his independent judgment in matters concerning Vedanta.
          For the purposes of this definition the Associates of the Agarwal
          family or Volcan shall not include (a) Vedanta and its subsidiary
          undertakings, (b) Vedanta's associated undertakings provided they were
          not controlled, directly or indirectly, by Volcan, and (c) any
          undertaking which is operated as a joint venture with Vedanta or one
          of its subsidiary undertakings provided it is not jointly controlled,
          directly or indirectly, by Volcano For the avoidance of doubt, the
          person who, as at 25 November 2004, are Non-Volcan Directors are Mr
          Michael Fowle, Mr Peter Sydney Smith, Mr Naresh Chandra, Mr Aman
          Mehta, Dr Shailendra Kumar Tamotia and Mr Jean Pierre Rodier"; and

     (c)  the final sentence of clause 3.7 of the Relationship Agreement shall
          be deleted.

2.2  The provisions of the Relationship Agreement, as amended by this Deed,
shall continue in full force and effect.

3    MISCELLANEOUS

3.1  Clauses 8, 10, 12, 15 and l6 of the Relationship Agreement shall apply to
this Deed as if set out in full in this Deed and for that purpose as if
references in those clauses to "Agreement" were references to this Deed.

                                                                         Page 25
<PAGE>
AS WITNESS this Deed has been signed by the duly authorised representatives of
the parties the day and year first before written.

Executed as a Deed                            )    /S/ ANDREW WOOLLEY
by VEDANTA RESOURCES PLC                      )    /S/ PETER SYDNEY-SMITH
acting by two directors/company secretary     )

Executed as a Deed                            )    /S/ ISAAC COLLIE
by VOLCAN INVESTMENTS                         )    /S/ SHANIQUA MCPHEE
LIMITED acting by two directors/              )
company secretary                             )

Executed as a Deed                            )
by DWARKAPRASAD AGARWAL                       )    /S/ DWARKA PRASAD AGARWAL
in the presence of:                           )

Witness signature:

Name: H N Maskara

Address: 4 The Drive, Feltham, Middlex

Occupation: Asst. Company Sec.

Executed as a Deed                            )
by AGNIVESH AGARWAL                           )    /S/ AGNIVESH AGARWAL
in the presence of:                           )

Witness signature:

Name: Kanhaiya Lal Damani

Address: 5th floor Dhanraj Mahal, CSM
         Marg Mumbai 400 039

Occupation: Service

                                                                         Page 26
<PAGE>
Executed as a Deed                            )
by AGIL AGARWAL                               )    /S/ AGIL AGARWAL
in the presence of:                           )

Witness signature:

Name: H N Maskara

Address: 4 The Drive, Feltham, Middlex

Occupation: Asst. Company Sec.

                                                                         Page 27

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