COMMERCIAL ENERGY BUSINESS

Work on 2,400 MW (600 MW x 4) green field coal based independent thermal power plant at Jharsuguda, Orissa is progressing well with equipment deliveries on schedule. The construction activities are in full swing and the project is on schedule for progressive commissioning from December 2009 as announced. During FY 2008, we obtained coal block allocations of 320 mt, including the largest and single allocation of 210 mt.

In respect of our green energy initiative projects, we have progressively commissioned 107.2 MW wind power plants as of March FY 2008 and are working satisfactorily. The remaining projects to take the wind power plant capacity to 123.2 MW are under execution for progressive commissioning by mid-FY 2008.

Gold Business

Since January FY 2007, the gold mining operations in Armenia were suspended pending resolution of some of the key clauses of the implementation agreement entered into with the Government of the Republic of Armenia. Due to a delay in finding a resolution, Vedanta continued to explore other alternatives and in August FY 2007 entered into an agreement with a third party for sale of the business together with all assets and liabilities. The agreement involved the sale of Vedanta’s full shareholding in Sterlite Gold at a price of $0.3845 per Sterlite Gold share equating to the total of $85.9 million and the settlement by the purchaser of Sterlite Gold’s $25.0 million payables to the Vedanta Group. The gain on disposal of Sterlite Gold operations of $29.8 million has been recognised in the income statement as special item.