Sterlite Industries (India) Limited - Sterlite Industries India Ltd.

Water (Prevention and Control of Pollution) Act, 1974 (“Water Act”)
The Water Act aims to prevent and control water pollution as well as restore water quality by establishing and empowering State Pollution
Control Boards. Under the Water Act, any individual, industry or institution discharging industrial or domestic waste water must obtain the
consent of the relevant State Pollution Control Board, which is empowered to establish standards and conditions that are required to be
complied with. If the required standards and conditions are not complied with, the State Pollution Control Board may serve a notice on the
concerned person, cause the local Magistrates to pass an injunction to restrain the activities of such person and impose fines.
Water (Prevention and Control of Pollution) Cess Act, 1977 (“Water Cess Act”)
Under the Water Cess Act, a lessee engaged in mining is required to pay a surcharge calculated based on the amount of water consumed and
the purpose for which the water is used. A rebate of up to 25% on the surcharge payable is available to those industries which install any plant
for the treatment of sewage or trade effluent, provided that they consume water within the quantity prescribed for that category of industries
and also comply with the effluent standards prescribed under the Water Act or the EPA. Penalties for non compliance include imprisonment of
any person in contravention of the provisions of the Water Cess Act for a period up to six months or a fine of Rs. 1,000, or both.
Air (Prevention and Control of Pollution) Act, 1981 (“Air Act”)
Pursuant to the provisions of the Air Act, any individual, industry or institution responsible for emitting smoke or gases by way of use of
fuel or chemical reactions must obtain the consent of the relevant State Pollution Control Board prior to commencing any mining or
manufacturing activity. The State Pollution Control Board is required to grant consent within a period of four months of receipt of an
application, but may impose conditions relating to pollution control equipment to be installed at the facilities and the quantity of emissions
permitted. The penalties for the failure to comply with the provisions of the Air Act include imprisonment of up to seven years and the payment
of a fine as may be deemed appropriate.
Employment and Labor Laws
We are subject to various labor, health and safety laws which govern the terms of employment of the our laborers at our mining and
manufacturing facilities, their working conditions, the benefits available to them and the general relationship between our management and
such laborers. These include:
The Industrial Disputes Act, 1947 (“IDA”)
The IDA seeks to preempt industrial tensions in an establishment and, provide the mechanics of dispute resolution, collective bargaining
and the investigation and settlement of industrial disputes between unions and companies. While the IDA provides for the voluntary reference
of industrial disputes to arbitration, it also empowers the appropriate government agency to refer industrial disputes for compulsory
adjudication and prohibit strikes and lock-outs during the pendency of conciliation proceedings before a board of conciliation or adjudication
proceedings before a labor court.
Contract Labor (Regulation and Abolition) Act, 1970 (“CLRA”)
The CLRA has been enacted to regulate the employment of contract labor. The CLRA applies to every establishment in which 20 or more
workmen are employed or were employed on any day of the preceding 12 months as contract labor. The CLRA vests the responsibility on the
principal employer of an establishment to register as an establishment that engages contract labor. Likewise, every contractor to whom the
CLRA applies must obtain a license and may not undertake or execute any work through contract laborers except in accordance with the
license issued.
To ensure the welfare and health of contract labor, the CLRA imposes certain obligations on the contractor in relation to establishment of
canteens, rest rooms, drinking water, washing facilities, first aid and other facilities and payment of wages. However, in the event the
contractor fails to provide these amenities, the principal employer is under an obligation to provide these facilities within a prescribed time
period.
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