UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM20-F

(Mark One)

or

For fiscal year ended March 31, 20172021

or

From the transition period from to

or

Date of event requiring this shell company report

From the transition period fromto

Commission file number001-33175

Vedanta Limited

(Exact Name of Registrant as specified in its charter)

Bhumika SoodPrerna Halwasiya

Compliance Officer

DLF Atria,Phase-2, Jacaranda Marg, DLF CityCore-6, 3rd Floor, Scope Complex, 7, Lodhi Road

Gurgaon – 122002, Haryana,New Delhi-110003, India

(91) 124 476351895-9966-7760

comp.sect@vedanta.co.in

(Name, Telephone,E-mail and/or facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Securities registered or to be registered pursuant to Section 12(g) of the Act.

None

(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.

None

(Title of Class)

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.

As of March 31, 2017, 2,965,004,8712021, 3,717,504,871 equity shares, par value Rs.₹ 1 per equity share, were issued and outstanding, of which 217,019,900160,903,244 equity shares were held in the form of 54,254,975

40,225,811 American Depositary Shares or ADSs.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes  ☒    No  ☐

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes  ☐    No  ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically, and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of RegulationS-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  ☐☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, anon-accelerated filer, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer” and “emerging growth company” in Rule12b-2 of the Exchange Act.

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act.  ☐

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.  ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

If “Other” has been checked in the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Item 17  ☐    Item 18  ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Securities Exchange Act of 1934).

Yes  ☐    No  ☒

TABLE OF CONTENTS

CONVENTIONS USED IN THIS ANNUAL REPORT

In this Annual Report, we refer to information regarding the zinc, oil and gas, iron ore, copper, aluminium, steel and power industries and our competitors from market research reports, analyst reports and other publicly available sources. Although we believe that this information is reliable, we have not independently verified the accuracy and completeness of the information. We caution you not to place undue reliance on this data.

On February 25, 2012, Vedanta Resources PlcLimited (“Vedanta” or “VRL”), the parent company of Sterlite Industries (India) Limited (“Sterlite” or “SIIL”), Sesa Goa Limited (“Sesa Goa”), Vedanta Aluminium Limited (“Vedanta Aluminium”), Sterlite Energy Limited (“Sterlite Energy”), Cairn India Limited (“Cairn India Limited”Vedanta Limited - oil and gas business”) and The Madras Aluminium Company Limited (“MALCO”) announced anall-share merger of majority owned subsidiaries, Sesa Goa and SIIL, to create Sesa Sterlite Limited (“Sesa Sterlite” or “SSL”) and a consolidation of various subsidiaries held by Vedanta to effect the consolidation and simplification of Vedanta’s corporate structure through two series of transactions (together the“Re-organization Transactions” consisting of the “Amalgamation andRe-organization Scheme” and the “Cairn India Consolidation”). TheRe-organization transactions were completed during fiscal year 2014 and the name of the merged entity was changed to Sesa Sterlite Limited with effect from September 18, 2013. The name of Sesa Sterlite Limited was changed to Vedanta Limited, with effect from April 21, 2015. Cairn India Limited has(now Vedanta Limited’s - oil and gas business) merged into Vedanta Limited by way of a scheme of arrangement and the Board of Directors of both the companies made the merger operative on April 11, 2017 (the “Cairn India Merger”). All references to Vedanta Limited - oil and gas business and its subsidiaries are referred to as “Cairn”. See “Item 4“Item 4: Information on the Company - A. History and Development of our Company.Company”.

Sterlite Energy was a wholly owned subsidiary of SIIL and SIIL, Vedanta Aluminium, Sesa Goa, MALCO and Cairn India Limited (now Vedanta Limited - oil and gas business) were subsidiaries of Vedanta, the ultimate holding company. Therefore, theRe-organization Transactions and Cairn India Merger fall within the purview of the common control business combination transactions. The accounting policies described in Notes 1 and 3.D—“Business3.C - “Business Combinations” of the consolidated financial statements included elsewhere in this Annual Report requires that financial statements of the combined entity, Vedanta Limited, be retroactively adjusted, as if the transaction had occurred at the earliest reporting period (or from the date the entity came under common control, where such a date is later).

In this Annual Report, references to the “ADS offering” is to the initial public offering of our equity shares in the form of American Depositary Shares (“ADSs”), each currently representing four equity shares, in the United States (or the “US”) completed in June 2007.

Unless otherwise indicated, our accompanying financial information has been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board or IASB,(“IASB”), for fiscal years ended March 31, 2015, 20162019, 2020 and 2017.2021. References to a particular “fiscal”“fiscal year or “FY” are to our fiscal year ended March 31 of that year. Our fiscal quarters end on June 30, September 30 and December 31. References to a year other than a “fiscal” year are to the calendar year ended December 31.

Our consolidated financial statements are reported in Indian Rupees or “Rs.“₹”. Unless otherwise specified, translation of amounts for the convenience of the reader has been made in this Annual Report (i) from Indian Rupees to US dollars at the rate of Rs. 64.85₹ 73.14 per $ 1.001 based on the exchange rate quoted by the Federal Reserve Bank of New York as of March 31, 2017;2021; (ii) from Australian dollars to US dollars at the rate of AUD 0.760.7613 per $ 1.001 based on the exchange rate quoted by the Federal Reserve Bank of New York as of March 31, 2017;2021; (iii) from South African Rand to US dollars at the rate of ZAR 13.4214.7475 per $ 1.001 based on the exchange rate quoted by the Federal Reserve Bank of New York as of March 31, 20172021; (iv) from British Pound to US dollars at the rate of GBP 1.3795 per $ 1 based on the exchange rate quoted by the Federal Reserve Bank of New York as of March 31, 2021 and (iv)(v) from Namibian dollars to US dollars at the rate of NAD 12.9714.9233 per $ 1.001 based on the exchange rate quoted by Oanda (data available at www.oanda.com)www.oanda.com as of March 31, 2017.2021. As of July 28, 2017,June 25, 2021, the exchange rate between US dollars and Indian Rupees was $ 1.001 = Rs. 64.11₹ 74.14 as quoted by the Federal Reserve Bank of New York. All financial information presented in US dollars has been rounded to nearest decimal. Any amount less than US dollar 0.5 million has been presented as “0”.

In this Annual Report, references to “US” or the “United States” are to the United States of America, its territories and its possessions. References to “UK” are to the United Kingdom. References to “India” are to the Republic of India. References to “Namibia” are to the Republic of Namibia. References to “South Africa” are to the Republic of South Africa. References to “Ireland” are to the Republic of Ireland. References to “Sri Lanka” are to the Democratic Socialist Republic of Sri Lanka. References to “UAE” are to the United Arab Emirates. References to “$”, “dollars” or “US dollars” are to the legal currency of the United States. References to “Rs.”“Indian Rupees”, or “Indian Rupees”“₹” are to the legal currency of the Republic of India. References to “AUD”, “Australian dollars” are to the legal currency of the Commonwealth of Australia. References to “NAD” or “Namibian dollars” are to the legal currency of Namibia. References to “ZAR” or “RAND” are to the legal currency of the Republic of South Africa. References to “¢” are to US cents. References to “RMB”, “Renminbi”, “CNY” or “Chinese Yuan” are to the legal currency of the People’s Republic of China. References to “JPY” are to the legal currency of Japan.

References to “lb” are to the imperial pounds (mass) equivalent to 0.4536 kilograms, references to “mt” or “tons” are to metric tons, references to “mmt” are to million metric tons, references to “tpd” are to tons per day, references to “tpa” are to tons per annum, a unit of mass equivalent to 1,000 kilograms or 2,204.6 lb, references to “mtpa” are to million tons per annum, “mmtpa” are to million metric tons per annum, references to “wmt” are to wet metric tons, references to “dmt” are to dry metric tons, references to “oz” are to ounces, with one kilogram being equivalent to 32.1507 oz and one ton equivalent to 32,151 oz, references to “mm” are to millimeters, references to “ha” are to hectares, references to “kms” are to kilometers, a unit of area equal to 10,000 square meters or 107,639 square feet, references to “GW” are to giga watts, references to “kt” are to kilo tons, references to “bbls” are to barrels, references to “blpd” are to barrels of liquid per day, references to “mmboe” are to million barrels of oil equivalent, references to “bboe” are to billion barrels of oil equivalent, references to “mmbopd” are to million barrels of oil per day, references to “kbopd” are to kilo barrels of oil per day, references to “bopd” are to barrels of oil per day, references to “boepd” are to barrels of oil equivalent per day, references to “tcm” are to trillion cubic meters, references to “mmscmd” are to million metric standard cubic meter per day, references to “mscf” are to thousand standard cubic feet, references to “mmscf” are to million metric standard cubic feet, references to “mmscfd” are to million metric standard cubic feet per day, references to “TWh” are to terawatt TWh hours, references to “bcf” are to billion cubic feet, references to “PPA” are to power purchase agreement and references to “TcRc” are to treatment and refining charges. References to net oil and gas production are to the entitlement interest production of Cairn India LimitedVedanta Limited’s - oil and gas business and its subsidiaries, in which the Ravva royalty is not netted off. References to “GoI” are to Government of India.

We conduct our businesses both directly and through a consolidated group of companies that we have ownership interests in. See “Item 4. Information on the Company” for more information on these companies and their relationships to us. Unless otherwise stated in this Annual Report or unless the context otherwise requires, references in this Annual Report to “we”, “us”, “our”, “Vedanta Limited”, “Sesa Sterlite Limited (SSL)”, “Sesa Sterlite”, “SSL”, “our Company”, “the Company” or “our consolidated group of companies” mean Vedanta Limited, its consolidated subsidiaries and its predecessors, collectively, including Cairn India Limited (now Vedanta Limited - oil and gas business) and its subsidiaries (“Cairn India”Cairn”), Monte Cello BV (“Monte Cello”), Copper Mines of Tasmania Proprietary Limited (“CMT”), Thalanga Copper Mines Proprietary Limited, Bharat Aluminium Company Limited (“BALCO”), Hindustan Zinc Limited (“HZL”), Fujairah Gold FZC, Sterlite (USA), Inc., (“Sterlite USA”), Talwandi Sabo Power Limited (“TSPL”), THL Zinc Ventures Limited, THL Zinc Limited, THL Zinc Holding B.V., THL Zinc Namibia Holdings (Proprietary) Limited (“Skorpion”), Skorpion Zinc (Proprietary) Limited, Skorpion Mining Company (Proprietary) Limited, Namzinc (Proprietary) Limited, Amica Guesthouse (Proprietary) Limited, Rosh Pinah Health Care (Proprietary) Limited, Black Mountain Mining (Proprietary) Limited (“BMM”), Vedanta Lisheen Holdings Limited (“Lisheen”), Vedanta Lisheen Mining Limited, Killoran Lisheen Mining Limited, Killoran Lisheen Finance Limited, Lisheen Milling Limited, Vedanta Exploration Ireland Limited, Lisheen Mine Partnership, Sterlite Ports Limited, Vizag General Cargo Berth Private Limited, Paradip Multi Cargo Berth Private Limited, Pecvest 17 Proprietary Limited, Lakomasko B.V., MALCO Energy Limited (“MALCO Energy”) (formerly known as Vedanta Aluminium), Sesa Resources Limited, Sesa Mining Corporation Limited, Bloom Fountain Limited (“BFL”), Goa Sea Port Private Limited, Twin Star Energy Holdings Limited (“TEHL”), Twin Star Mauritius Holdings Limited (“TMHL”), Sesa Sterlite Mauritius Holdings Limited (“SSMHL”) Western Cluster Limited (“WCL”), Maritime Ventures Private Limited, Sesa Sterlite Mauritius Holdings Limited, Vedanta Star Limited (“VSL”), Electrosteel Steels Limited (“ESL”) and Twinstar Energy Holding Limited.Avanstrate Inc.(“ASI”), Avanstrate Korea, Avanstrate Taiwan.

Our consolidated financial information does not include our controlling shareholder Vedanta, its shareholders and various companies owned directly or indirectly by it (other than us and our consolidated group of companies described above), including without limitations, Vedanta Resources Holdings Limited (“VRHL”), Konkola Copper Mines Plc, Konkola Resources Plc, Twin Star Holdings Limited (“Twin Star”), Welter Trading Limited (“Welter Trading”), the Anil Agarwal Discretionary Trust (“Trust”), Conclave PTC Limited (“Conclave”), Volcan Investments Limited (“Volcan”), Volcan Investments Cyprus Limited, Sterlite Technologies Limited, Monte Cello Corporation NV, Valliant (Jersey) Limited, Vedanta Resources Jersey II Limited, Vedanta Resources Finance Limited, Vedanta Resources Cyprus Limited, Richter Holding Limited (“Richter”), Westglobe Limited (“Westglobe”), Finsider International Company Limited (“Finsider”), Vedanta Resources Jersey Limited, Vedanta Finance (Jersey) Limited, Vedanta Jersey Investments Limited, Vedanta Finance UK Limited, Sesa Sterlite Mauritius Holdings Limited, and Sterlite Grid Limited. References to the “Group” is to Vedanta Limited and its subsidiaries on a consolidated basis and references to the “Vedanta Group” is to Vedanta and its subsidiaries on a consolidated basis.

In this Annual Report, references to The London Metal Exchange Limited (“LME”) price of zinc, copper, aluminium are to the cash seller and settlement price on the LME for copper, zinc or aluminium for the period indicated. References to primary market share in this Annual Report are to the market that includes sales by producers of metal from copper concentrate or alumina, as applicable, and do not include sales by producers of recycled metal or imports.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report contains “forward-looking statements” as defined in the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, assumptions, estimates and projections about our company and our industry. These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “project,” “seek,” “should” and similar expressions. These forward-looking statements include, among other things, the discussions of our business strategy and expectations concerning our market position, future operations, margins, profitability, liquidity and capital resources. We caution you that reliance on any forward-looking statement involves risks and uncertainties, and that, although we believe that the assumptions on which our forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate and, as a result, the forward-looking statements based on those assumptions could be materially incorrect. Factors which could cause these assumptions to be incorrect include, but are not limited to:

These and other factors are more fully discussed in “Item“Item 3. Key Information—Information - D. Risk Factors,” “Item“Item 5. Operating and Financial Review and Prospects”Prospects” and elsewhere in this Annual Report. In light of these and other uncertainties, you should not conclude that we will necessarily achieve any plans, objectives or projected financial results referred to in any of the forward-looking statements. Except as required by law, we do not undertake to release revisions to any of these forward-looking statements to reflect future events or circumstances.

PART I

Not applicable

Not applicable

A. Selected Consolidated Financial Data

The selected consolidated financial data presented below as of March 31, 20162020 and 20172021 and for the years ended March 31, 2015, 20162019, 2020 and 20172021 has been derived from our consolidated financial statements included herein, which have been prepared in conformity with IFRS as issued by the IASB. The consolidated financial statements as of March 31, 20172020 and 2021 and for the yearyears ended March 31, 20172019, 2020 and 2021 have been audited by S.R. Batliboi & Co. LLP, India, our independent registered public accounting firm, and included elsewhere in this Annual Report. The consolidated financial statements as of March 31, 2016 and 2015 and for the years ended March 31, 2015 and 2016 were audited by Deloitte Haskins & Sells LLP, Mumbai, India, or Deloitte, our former independent registered public accounting firm.

The selected consolidated financial data presented below as of March 31, 2013, 20142017, 2018 and 2015,2019, and for the years ended March 31, 20132017 and 20142018 has been derived from our consolidated financial statements, which also have been prepared in conformity with IFRS as issued by the IASB, and which have not been included elsewhere in this Annual Report.

Our historical results do not necessarily indicate our expected results for any future period. The translations of Indian Rupee amounts to US dollars presented in the tables below, are solely for the convenience of the reader and are based on the noon buying rate of Rs. 64.85₹ 73.14 per $ 1.001 in the City of New York for cable transfers of Indian Rupees, respectively, as certified for customs purposes by the Federal Reserve Bank of New York on March 31, 2017.2021. No representation is made that the Indian Rupee amounts represent US dollar amounts or have been, could have been or could be converted into US dollars at such rates or at any other rates.

You should read the following information in conjunction with “Item“Item 5. Operating and Financial Review and Prospects” and the consolidated financial statements included elsewhere in this Annual Report.

		For the Year Ended March 31,
		2013				2014				2015				2016				2017				2017
		(Rs.) (in millions except shares and per share data)				(Rs.) (in millions except shares and per share data)				(Rs.) (in millions except shares and per share data)				(Rs.) (in millions except shares and per share data)				(Rs.) (in millions except shares and per share data)				(US Dollar) (in millions except shares and per share data)
Basic			2,965,004,871				2,965,004,871				2,965,004,871				2,965,004,871				2,964,333,584				2,964,333,584
Diluted			2,965,004,871				2,965,004,871				2,965,004,871				2,965,004,871				2,965,560,871				2,965,560,871
Dividend declared per share(1),(2)

Notes:

On October 28, 2016 the board of directors of Vedanta Limited declared an interim dividend of Rs. 1.75 ($0.03) per equity share for the year ended March 31, 2017. The dividend amounting to Rs. 5,189 million ($80.0 million) has been subsequently paid before the due date. On March 30, 2017 the board of directors of Vedanta Limited declared an interim dividend of Rs. 17.70 ($0.3) per equity share for the year ended March 31, 2017. The dividend amounting to Rs. 65,799.8 million ($1,014.6 million) has been subsequently paid.

		For the Year Ended March 31,
		2013				2014				2015				2016				2017				2017
		(Rs. in millions)				(Rs. in millions)				(Rs. in millions)				(Rs. in millions)				(Rs. in millions)				(US dollars in millions)
Cash Flow Data:
Net cash provided by (used in):
Operating activities			97,110				56,199				125,710				107,352				212,105				3,270.5
Investing activities			(153,176	)			(52,631	)			(43,939	)			(42,613	)			(79,910	)			(1,232.1	)
Financing activities			1,855				(6,280	)			(86,448	)			(52,714	)			(49,123	)			(757.4	)
Segment Data:
Revenue from external customers:
Zinc India			123,241				131,980				144,127				137,945				169,194				2,609.0
Zinc International			43,475				40,156				35,886				25,631				22,302				343.9
Oil and Gas			175,518				187,103				146,945				86,559				82,041				1,265.1
Iron Ore			26,054				16,516				19,039				22,233				40,880				630.4
Copper			217,262				205,577				225,198				209,239				210,021				3,238.6
Aluminium			99,073				107,790				126,900				110,781				136,667				2,107.4
Power			34,169				35,076				33,906				45,523				55,189				851.0
Others			3,511				1,045				1,578				1,582				913				14.1
Total			722,303				725,243				733,579				639,493				717,207				11,059.5
Operating profit/(loss):
Zinc India			58,341				61,696				62,267				59,412				85,491				1,318.3
Zinc International			5,078				2,484				4,268				831				7,336				113.1
Oil and Gas			50,370				53,942				(395,146	)			(342,813	)			14,205				219.0
Iron Ore			(77	)			(5,476	)			(3,422	)			(15,793	)			8,403				129.6
Copper			8,517				8,876				14,344				19,660				15,026				231.7
Aluminium			960				4,979				13,752				1,416				11,725				180.8
Power			6,393				1,494				4,484				8,221				10,757				165.9
Others			(71	)			(467	)			238				244				(199	)			(3.1	)
Total			129,511				127,528				(299,215	)			(268,822	)			152,744				2,355.3
Segment profit/(loss)
Zinc India			64,227				68,642				70,605				66,970				95,499				1,472.6
Zinc International			15,712				12,829				11,059				4,561				9,181				141.6
Oil and Gas			128,502				139,453				88,671				34,273				40,892				630.6
Iron Ore			4,530				(2,700	)			(891	)			4,367				13,091				201.9
Copper			10,868				11,429				17,385				22,205				16,964				261.6
Aluminium			11,285				16,131				22,529				8,467				23,200				357.7
Power			11,551				7,429				8,424				12,659				16,442				253.5
Others			(61	)			(257	)			532				568				114				1.7
Total			246,614				252,956				218,314				154,070				215,383				3,321.2

Notes:

		For the Year Ended March 31,
		2013				2014				2015				2016				2017				2017
		(Rs. in millions)				(Rs. in millions)				(Rs. in millions)				(Rs. in millions)				(Rs. in millions)				(US dollars in millions)
Iron Ore
Operating profit/(loss)			(77	)			(5,476	)			(3,422	)			(15,793	)			8,403				129.6
Plus: Depreciation and amortization(3)			4,607				2,776				2,531				20,160				4,688				72.3
Segment profit/(loss)			4,530				(2,700	)			(891	)			4,367				13,091				201.9
Copper:
Operating profit			8,517				8,876				14,344				19,660				15,026				231.7
Plus: Depreciation and amortization(4)			2,351				2,553				3,041				2,545				1,938				29.9
Segment profit			10,868				11,429				17,385				22,205				16,964				261.6
Aluminium:
Operating profit/(loss)			960				4,979				13,752				1,416				11,725				180.8
Plus: Depreciation and amortization(5)			10,325				11,152				8,777				7,051				11,475				176.9
Segment profit			11,285				16,131				22,529				8,467				23,200				357.7
Power:
Operating profit			6,393				1,494				4,484				8,221				10,757				165.9
Plus: Depreciation and amortization			5,158				5,935				3,940				4,438				5,685				87.6
Segment profit			11,551				7,429				8,424				12,659				16,442				253.5
Others:
Operating profit/(loss)			(71	)			(467	)			238				244				(199	)			(3.1	)
Plus: Depreciation and amortization			10				210				294				324				313				4.8
Segment profit/(loss)			(61	)			(257	)			532				568				114				1.7

Exchange Rates

Substantially all of our revenue is denominated or paid with reference to US dollars and most of our expenses are incurred and paid in Indian Rupees. We report our financial results in Indian Rupees. The exchange rates among the Indian Rupee and the US dollar have changed substantially in recent years and may fluctuate substantially in the future. The results of our operations are affected as the Indian Rupee appreciate or depreciate against the US dollar and, as a result, any such appreciation or depreciation will likely affect the market price of our ADSs in the United States.

The following table sets forth, for the periods indicated, information concerning the exchange rates between Indian Rupees and US dollars based on the rates quoted on Federal Reserve Bank of New York:

Notes:

Although we have translated selected Indian Rupee amounts in this Annual Report into US dollars for convenience, this does not mean, and no representation is made, that the Indian Rupee represent US dollar amounts or have been, could have been or could be converted to US dollars at any particular rate, the rates stated above, or at all. Unless otherwise stated herein, all translations in this Annual Report from Indian Rupees to US dollars are based on the exchange rate quoted by the Federal Reserve Bank of New York on March 31, 2017, which was Rs. 64.85 per $ 1.00. As of July 28, 2017, the exchange rate between US dollars and Indian Rupees was $ 1.00 = Rs. 64.11 as quoted by the Federal Reserve Bank of New York.

		For the Year Ended March 31,
		2017				2018				2019				2020				2021				2021
		(₹ in millions except shares and per share data)																				($ in millions except shares and per share data)
INCOME STATEMENT DATA
Revenue			714,644				909,549				909,012				835,446				868,630				11,876
Profit/ (Loss) for the year			98,545				47,284				76,229				(42,100	)			146,990				2,010
Earnings per share
Basic			18.57				3.80				13.43				(16.54	)			30.47				0.42
Diluted			18.56				3.79				13.38				(16.54	)			30.28				0.41
CASH FLOW DATA
Cash flow from operating Activities			212,105				348,407				208,420				182,393				295,952				4,046
Cash flow from Investing Activities			(79,910	)			(52,153	)			(133,147	)			(116,866	)			(167,358	)			(2,288	)
Cash flow from Financing Activities			(49,123	)			(357,144	)			(45,643	)			(87,356	)			(131,371	)			(1,796	)
BALANCE SHEET DATA
Total assets			1,918,861				1,764,429				1,930,910				1,755,405				1,771,111				24,216
Short-term borrowings			413,126				313,700				315,053				212,231				189,600				2,592
Long-term borrowings			332,654				267,888				347,209				367,244				379,622				5,191
Non-controlling interests			137,250				157,377				150,608				169,374				149,452				2,043
Equity attributable to equity holders of the parent			576,538				596,800				581,388				512,521				584,597				7,993
DIVIDENDS
Dividend per share			19.45				21.2				18.85				3.9				9.50				0.13
Weighted average number of equity shares used in computing earnings per share
Basic			2,964,333,584				3,709,778,760				3,705,502,141				3,702,554,614				3,704,196,924				3,704,196,924
Diluted			2,965,560,871				3,717,466,311				3,721,449,633				3,702,554,614				3,727,544,981				3,727,544,981

B. Capitalization and Indebtedness

Not applicable

C. Reasons for the Offer and Use of Proceeds

Not applicable

D. Risk Factors

This Annual Report contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those described in the following risk factors and elsewhere in this Annual Report. If any of the following risks actually occur, our business, financial condition and results of operations could suffer and the trading price of our equity shares and ADSs could decline.

1. Risks related to global health pandemic from COVID-19

The outbreak, or threatened outbreak, of any severe communicable disease, such as the ongoing COVID-19 pandemic, may adversely impact Vedanta Limited’s business, financial condition and results of operations.

The outbreak, or continued or threatened outbreak, of any severe communicable disease, such as Severe Acute Respiratory Syndrome (“SARS”), Middle East Respiratory Syndrome-Corona virus, avian influenza (commonly known as bird flu), H1N1, COVID-19 or any another similar disease could materially and adversely affect overall business sentiment and environment, particularly if such outbreak is inadequately controlled.

The outbreak or continued outbreak of COVID-19, which has been declared a global pandemic by organisations such as the World Health Organization in the first quarter of 2020, has severely affected and continues to seriously affect the global economy. Several nations and territories, including areas where Vedanta Limited operates, imposed strict quarantine measures, social distancing rules, closure of work sites, restaurants, bars and non-essential services, and even complete lockdowns of certain populations or areas. These measures have inadvertently resulted in a period of business disruption, including prolonged disruptions to manufacturing and global supply chains as well as restrictions on business activity and the movement of people comprising a significant portion of the world’s population, and a decrease in economic activity in several countries. Although many governments have introduced stimulus packages to mitigate the effect of the outbreak of the COVID-19 pandemic on their respective economies, there is no assurance that such packages are sufficient or that such measures will successfully improve business sentiments in the affected economies in the short term. As the virus has been undergoing several mutations, new outbreaks of COVID-19 have arisen from time to time. The severity and duration of outbreaks vary from country to country, which may result in differing economic impact on each country. Despite the global vaccination effort, there is no guarantee that the risk of additional outbreaks will not happen in any country.

As a result, the COVID-19 pandemic has led to uncertainty in the global economy, including India and significant volatility in global financial markets, which had a negative impact on global economic conditions and led to significant declines in the demand for and prices of the commodities Vedanta Limited produces and sells during the first half of 2020. However, lockdowns were gradually lifted, and economic activities restarted slowly. With the help of several fiscal and monetary stimulus packages announced by various countries, the second half of 2020 witnessed improvement in economic condition and revival of demand for commodities, which continued in 2021, although in different degrees in different countries. However, the duration of the COVID-19 outbreak and the resulting future effects are uncertain, and the foregoing impacts and other effects not referenced above, as well as the ultimate impact of the COVID-19 outbreak, are difficult to predict and it is possible that the COVID-19 pandemic will cause a prolonged global economic crisis or recession.

For India, Q4 FY 2021 began on a positive note on the approval of two vaccines for use in India which contributed to positive expectation on the economy. India experienced a second wave starting since March 2021 and spread in wide areas in India in short period of time. The number of people infected from the virus and the deaths occurred due to it had been many times higher than the first wave which posed India’s economic recovery in an uncertain condition. Unlike a nation-wide lock down during the first wave, many Indian states resorted to local lockdown or curfew to control the spread of the virus during the second wave. As Government of India continued to focus on domestic commodity production and various relief measures implemented, India’s GDP growth rate turned into positive in Q3 and Q4 of FY 2021. As per World Economic Outlook published by International Monetary Fund (IMF) in April 2021, India’s GDP has registered -8% growth in 2020, but it is projected to bounce back by 12.5% in 2021. However, though the number of infected people has been seen declining and lockdowns or curfew measures are being eased in some states in India, there may be further outbreaks of COVID-19 cases or outbreak of other diseases like Mucormycosis which may force restraining economic activities in the future.

The COVID-19 pandemic has directly impacted the company’s business operations, requiring the Company to adopt precautionary measures such as telecommuting, limiting face-to-face meetings and restricting domestic and overseas business travel. Though there had been periodic lockdowns and open up in various parts of the world, our focus remained on maintaining business continuity, while ensuring overall safety of our people and community. The Company continued to maintain global standards to manage health and hygiene at workplace and a 24 hour health helpline was provided for employees and their family members to deal with the viral disease. A series of health webinars and awareness programs for employees and community alertness were conducted to spread awareness. In one of the largest COVID vaccination drives carried out by corporate India, Vedanta Cares has administered one dose of vaccine to over 84000 employees, business partners as well as their family members by June 15, 2021. The company has proposed to complete its vaccination drive across all its locations by August 2021. Some of the other initiatives include extending COVID Kawach insurance to business partners that includes Term Life, Hospitalization as well as an Ex-gratia amount of ₹ 1 million (equivalent to ₹ 10 Lakhs) and ensuring salary until retirement for families of deceased. In order to help our country in its fight against the second wave of COVID-19, the company pledged ₹ 1,500 million. Our flagship program Vedanta Care has taken up with 1,000 bed initiative in 10 different locations across India, with 10 ventilator equipped beds and 90 oxygen support beds will be added in each location. Our aluminum, Cairn and HZL units have added almost another 1,000 additional beds in existing hospitals along with supplying liquid medical oxygen, distributing masks and sanitizer to the communities and delivering food in large scale to the needy people as part of our CSR program. While we have not experienced any major disruption to its supply chain in light of the COVID-19 pandemic and the relevant lockdown periods as applicable, there can be no assurance that the COVID-19 pandemic may not in the future affect the Company’s ability to continue doing business with its suppliers, third-party contractors and other parties that Vedanta Limited conducts business with or that operate within the Company’s supply chains. The COVID-19 pandemic may also result in a decrease in demand for Vedanta Limited’s products. During the lockdown in India, owing to the constraints in the Indian domestic market, the Company has experienced a decline in domestic demand for its products requiring it to access the export market in order to maintain its sales. While domestic demand for the Company’s products have improved following the lifting of the lockdown restrictions, there can be no assurance that there will not be future lockdown restrictions imposed due to the COVID-19 pandemic which in turn could have an adverse impact on the demand for Vedanta Limited’s products.

The COVID-19 pandemic initially severely impacted the global commodity market with weaker prices seen during January to April of 2020 across oil and bulk metals in particular which has impacted the prices of the commodities the Company produces and sells. A decline in prices for the products which the Company sells may significantly and adversely impact the value of its inventories and its profitability. For example, average LME prices of zinc and aluminium and Brent crude oil price decreased by 19%, 9% and 50% respectively between January and March 2020. However, commodity prices started recovering from the month of May-June of 2020. Subsequently, base metal prices surpassed the pre-COVID level and reached multi-year high. But due to volatile nature of the market and evolving nature of the COVID pandemic due to emergence of new strains of the virus, there is no assurance that commodity prices will sustain the momentum in near future.

Although the COVID-19 pandemic has not generally lead to any major disruptions to operations at Vedanta Limited’s mines or production facilities where Vedanta Limited’s operations were deemed as “essential” or “continuous” in nature, Vedanta Limited was still subject to temporary disruptions leading to production being down to 80% of the capacity during the relevant lockdown periods as applicable to the respective mines and production facilities, which production has since increased to approximately 90% of the capacity following the lifting of the relevant lockdowns. There is no assurance that Vedanta Limited will not be required in the future to suspend or shut down operations at some or all of its mines or facilities as a result of the COVID-19 pandemic. In such event, Vedanta Limited’s business, financial condition and results of operations may be materially and adversely affected.

The COVID-19 pandemic situation remains volatile, rendering the future impact on Vedanta Limited’s operations difficult to assess. Though the operational and financial performance of Vedanta Limited recovered from the initial disruption caused by the COVID-19 pandemic. There can be no assurance that the COVID-19 pandemic will not have any adverse impact on Vedanta Limited’s capital and financial resources, profitability or liquidity position beyond Fiscal Year 2021. While Vedanta Limited continues to pay close attention to the development of the COVID-19 pandemic and adopt relevant measures to assess the impact of the COVID-19 pandemic on its business operations and financial situation, there can be no assurance that Vedanta Limited will be able to make such timely and/or accurate assessments thereof. The extent to which the COVID-19 pandemic will impact Vedanta Limited’s operations and revenues will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, new information concerning the severity of the COVID-19 pandemic, the actions taken to contain the COVID-19 pandemic or mitigate its impact, and the direct and indirect economic effects of the illness and containment measures, among others. Any intensification of the COVID-19 pandemic or any other severe communicable disease in the jurisdictions where Vedanta Limited operates may adversely affect its business, financial condition and results of operations.

COVID-19 may reduce the supply of labour owing to the ongoing lockdown and social distancing norms. For instance, our facilities in Aluminium business have switched to limited manning in line with the government guidelines and social distancing norms which are being eased gradually. We look to dynamically adapt our product mix to cater to exact customer preferences, based on our spare metal casting capacities across various shapes. The management is watchful of changing global and local scenarios and is actively charting its new course with health and safety as its first priority followed by its business objectives.

2. Risks Relating to Our Business

i) Our operations are subject to governmental, health and safety and environmental regulations, which require us to obtain and comply with the terms of various approvals, licenses and permits. Any failure to obtain, renew or comply with the terms of such approvals, licenses and permits in a timely manner may have a material adverse effect on our business, financial condition and results of operations

Numerous governmental permits, approvals and licenses are required for our operations as the industries in which we operate and seek to operate are subject to numerous laws and extensive regulation by national, state and local authorities in jurisdictions including India, UAE, Australia, Namibia, South Africa, Namibia, UAE, Ireland, Australia, Japan, South Korea, Taiwan, Liberia and any other jurisdictions where we may operate in future. Our operations are also subject to laws, regulations and standards relating to employment, the protection of the health and safety of our employees, as well asand the environment, including conservation and climate change. Evolving regulations, standards and stakeholder expectations could result in increased cost, litigation or threaten the viability of operations in extreme cases. For instance, we are required to obtain various environmental and labor-related approvals in connection with our operations in India, including clearances from the Ministry of Environment, Forests and ForestsClimate Change (“MoEF”MoEF&CC”), Government of India (“GoI”)GoI and from the relevant pollution control boards in various states in India in which we operate in order to establish and operate our facilities. Certain of such approvals are valid for certain specified periods of time and require periodic renewals, such as consents to operate and under the Air (Prevention and Control of Pollution) Act, 1981, as amended, and the Water (Prevention and Control of Pollution) Act, 1981 from the relevant Pollution Control Boards which are generally granted for a period of one year.

Further, our oil and gas exploration and mining activities depend on the grant or renewal of various exploration and mining licenses and production sharing contracts (“PSC”) and other regulatory approvals that are valid for a specific period of time. In addition, such licenses and contracts contain various obligations and restrictions, including restrictions on assignment or any other form of transfer of a mining lease or on the employment of a person who is not an Indian national. For instance, in connection with our mining operations in India, mining leases are typically granted for a period of 20 to 3050 years and stipulate conditions including approved limits on extraction. Similarly, in connection with our oil and gas operations in India, Cairn India is required to enter into a production sharing contractPSC and obtain an exploration license, which typically extends to 7 or 8 years following the award of a blocklicense; before it can commence exploration activities and if exploration is successful, Cairn India is then required to procure a petroleum mining lease from the relevant government authority which typically extends for a period of 20 years in order to conduct extraction operations for oil and gas.petroleum operations.

Our current oil and gas reserves and production are significantly dependent on the Rajasthan block in India. The current production sharing contractPSC for the block iswas initially valid until May 14, 2020. If the production sharing contract does not get extended or gets extended on unfavorable terms, for example, if the GoI seeks a higher profit share, or the Oil and Natural Gas Corporation Limited (“ONGC”) seeks higher shareholding in the Rajasthan block, this could result in a substantial loss of value and could have a material and adverse effect on our results of operations and financial condition. On April 7, 2017, the Ministry of Petroleum and Natural Gas (“MoPNG”) issued a policy foron the grant of extension to the production sharing contracts signed byPSCs relating to the GoI awardingPre-New Exploration Licensing Policy(“Pre-NELP”) Exploration Blocks(“Pre-NELP Extension Policy”). signed by the GoI. ThePre-NELP Extension Policy defines the framework for granting of extension forPre-NELPPre-New blocks including the Rajasthan and Cambay fields.Exploration Licensing Policy (“Pre-NELP”) Exploration Blocks. Under thePre-NELP Extension Policy, the Government’s share of profit petroleum during the extended period of contracts would be at higher rates for the applicable fields. On October 26, 2018, the GoI granted its approval for a ten year extension of the PSC for the Rajasthan Block under the Pre-NELP Extension Policy, subject to certain conditions. The applicability of the Pre-NELP Extension Policy (entailing additional 10% higher profit petroleum to the GoI) to Rajasthan Block PSC has been challenged by Cairn before the Delhi High Court. The Delhi High Court passed a judgment on May 31, 2018 directing extension of PSC on same terms. This judgment was appealed by the GoI. The division bench of the Delhi High Court vide its order dated March 26, 2021 has allowed the appeal of the GoI. We are evaluating the judgement and shall decide on the future course of action as appropriate. Separately, Director General of Hydrocarbons (“DGH”) has sought an unconditional acceptance of the conditions to the extension of the Rajasthan Block PSC, which includes the payment of additional profit petroleum to GoI on account of certain audit observations. Cairn has initiated arbitration and filed a Notice of Arbitration dated May 14, 2020 against GoI with respect to such audit observations. In a separate matter, Cairn has initiated arbitration and filed a Notice of Arbitration dated March 1, 2019 against ONGC with respect to issue of Cost Oil finalization.

Due to extenuating circumstances resulting from the COVID -19 pandemic and pending signing of the PSC addendum for extension after complying with all stipulated conditions, GoI through letter dated May 14, 2020 permitted the Company to continue petroleum operations in the RJ Block with effect from May 15, 2020 until the earlier of the date that the extension is signed or a period of three months from the date of the letter. GoI, has from time to time extended this and it is presently valid till July 30, 2021. If the Rajasthan Block PSC is not extended on same terms as before, it could result in substantial loss of value and any adverse outcome arising out of the conditions imposed by the GoI may lead to delays in obtaining PSC extension or result in financial liability, either of outcome could have a material and adverse effect on our results of operations and financial condition. See “Item 8. Financial Information—A. Consolidated Statements and Other Financial Information—Legal Proceedings.” and “Item 4. Information on the Company” for further details. Furthermore, under the terms of the production sharing contracts,our PSCs, we are obliged to sell our entitlement toof crude oil in the Indian domestic Indian market until such time as the total availability of the crude oil and condensate from all Indian domestic petroleum production activities meets the total Indian national demand for crude oil and India achieves self-sufficiency. There is currently a mismatch between the demand for and the supply forof crude oil in India, with the domestic demand outweighing the domestic production, of crude oil, and this mismatch is expected to continue in the long term. Further, to the extent our Indian blocks yield crude oil that is not suitable for processing by refineries in India or on account of any downward shift in demand for such crude oil from our buyers, it may be difficult for us to monetize such domestic crude oil reserves and this could have a material adverse effect on our oil and gas business, financial condition orand results of operations.

The Government approval is also required, generally, for the continuation of mining as well as oil and gas exploration and production activities in India and other jurisdictions, and such approval can be revoked for a variety of circumstances by the GoI, Indian courts or other authorities. Any general suspension of mining activities by the government of a jurisdiction containinggoverning our mining operations could have the effect of closingsuspending or limiting production from our operations. For example, our total iron ore production declined from 13.8 mmt in fiscal year 2012 to 0.6 mmt in fiscal year 2015 due to the forced suspension imposedof mining activities in Goa. The suspension orders were withdrawn by the Goa state government in 2015 and operations recommenced in January 2015. The Supreme Court passed its final order on the matter on February 7, 2018 wherein it set aside the second renewal of the mining leases granted by the state of Goa. The Supreme Court directed all lease holders operating under such second renewal to stop all mining operations with effect from March 16, 2018 until fresh mining leases (not fresh renewals or other renewals) and fresh environmental clearances are granted under the Mines and Minerals (Development and Regulation) Act (“MMDR”). Our mines in Goa were affected by this judgement of the Supreme Court of India. Subsequent to this judgement, the Company had filed for representation before the Goa state government seeking extension of the validity of our leases in accordance with the provisions of the MMDR Amendment Act, 2015 which provides that all leases granted prior to the commencement of 2015 Amendment Act were deemed to be granted for a tenure of 50 years, which was not considered by the state government citing directions in the Supreme Court order dated February 7, 2018. Writ Petition filed before the High Court of Bombay at Goa against the letter of the state government was dismissed by the High Court on the mining activities inground that it will not be proper for the state of Goa. In January 2015,High Court to grant the government of Goa revokedrelief sought therein. The Company has challenged the order suspendingof High Court before the Supreme Court, in which notice has been issued to parties and the State Government has filed a supportive affidavit. Separately, the Company and State government has filed review petition against the order dated February 7, 2018.

Even after receiving appropriate orders for continuation of mining operations in Goa, our iron ore business will remain largely dependent on export sales of iron ore to China. For instance, in fiscal year 2017, 100% of sales to external customers for our Goa mining operations was from exports to customers in China. As a result, the stateperformance and growth of Goaour iron ore business is necessarily dependent on the health of the Chinese economy, which may be materially and the MoEF revoked the suspension of environmental clearances in March 2015. Lease deeds for all working leases have been executed and registered. We have obtained Consent to Operate under the Air (Prevention of Pollution) Act and Water (Prevention of Pollution) Act from the Goa State pollution Control Board and have resumed operations at our major mines. All mining plans have been approvedadversely affected by the Indian Bureau of Mines and the state government of Goa allocations of mining cap is in line with the Supreme Court’s directive. We continue to actively pursue the lifting of mining caps and additional allocation of production from the state government of Goa. See “Item 8. Financial Information— A. Consolidated Statements and Other Financial Information— Legal Proceedings.” for further details.

Further, the state government of Goa appointed an independent firm in August 2014 to undertake an audit of production levels in excess of environment clearances of all mining companies operatingpolitical instability or regional conflicts, economic slowdown elsewhere in the stateworld or otherwise. In addition, any worsening of Goa, including our Company for the period from fiscal year 2008 to fiscal year 2013. The independent firm submitted its final reportinternational relations between India and China, any negative changes in Chinese regulatory or trade policies relating to the state Directorateimport of Mines and Geology (DMG) on May 5, 2015. Observations raised by the audit with respect to our Company included production levels to be in excess of environmental clearances for the leases of the Company, and whether the royalty can be payable on a dry metric ton (DMT) basis instead of wet metric ton (WMT) basis, and the audit process was based on the formats and procedures specified by DMG and the report was submitted accordingly. The Company has refuted these observations and provided its responses to these observations to the firm based upon a legal opinion of our Indian counsel, and these responses have been filed in the audit report of the Independent firm to the state DMG. In doing so, the Company has reserved its rights without prejudice to its responses and requested an opportunity to furnish further documentation and information as may be appropriate before any further steps in this regard are taken by the state government. We received a show cause notice from DMG on August 5, 2016 to which we filed a reply on November 24, 2016. The Company has not received any further notice or communication in this regard. If the Company is subject to any subsequent action based upon the recommendations of the audit report, we could be subject to significantly higher royalty payments and /iron ore or other penalties. Such an outcomelimitations, restrictions or any other adverse outcomenegative changes in our ability to export iron ore to China, could result inhave a material adverse effect on our financial conditioniron ore business.

Separately, the Expert Committee on Iron Ore has filed its reports on dump handling and resultsceiling on annual extractions before the Supreme Court recommending the immediate enhancement of operations.the annual extraction ceiling to 30 million MT, and subsequently to 37 million MT after the development of infrastructure. The Expert Committee on Iron Ore’s report is yet to be accepted and the matter is pending before the Supreme Court.

Our global presence exposes us to a number of jurisdictions in which regulations or laws have been or are being considered to limit or reduce greenhouse gas (“GHG”) emissions. The likely effect of these changes will be to increase the cost for fossil fuels, impose levies for emissions in excess of certain permitted levels and increased administrative costs for monitoring and reporting. Increasing regulation of greenhouse gas (GHG)GHG emissions, including the progressive introduction of carbon emissions trading mechanisms and tighter emission reduction targets, is likely to raise costs and reduce demand growth. These regulations in the jurisdictions of our major customers and in relation to international shipping could also have an adverse effect on the demand for our products. Our smelting and mineral processing operations are energy intensive and depend heavily on fossil fuels. Increasing regulation of climate change issues such as greenhouse gas emissions, including the progressive introduction of carbon emissions trading mechanisms and tighter emission reduction targets, may raise energy costs and costs of production over the coming years. Any failure to comply with applicable laws, regulations or recognized international standards, or to obtain or renew the necessary permits, approvals and licenses may result in the loss of the right to operate our facilities or continue our operations, the imposition of significant administrative liabilities, or costly compliance procedures, or other enforcement measures that could have the effect of closing or limiting production from our operations. If we were to fail to meet environmental requirements or to have a major accident or disaster, we may also be subject to administrative, civil and criminal proceedings by governmental authorities, as well as civil proceedings by environmental groups and other individuals, which could result in substantial fines, penalties and damages against us, as well as subject to orders that could limit or halt or even cause closure of our operations, any of which could have a material adverse effect on our business, financial condition and results of operations.

For example, in March 2013, the Tamil Nadu Pollution Control Board (“TNPCB”) ordered the closure of the 400,000 tpa copper smelter at Tuticorin in Tamil Nadu, India due to complaints regarding a noxious gas leak by local residents. TheOn April 1, 2013, we filed a petition with the National Green Tribunal (“NGT”) challenging the order of the TNPCB on the basis that the plant’s emissions were within permissible limits. The NGT thereafter passed an interim order in May 2013 allowing the copper smelter to recommence operations subject to certain conditions, and we recommenced operations in June 2013. However, the TNPCB filed a notice of appeal against the orders of the National Green Tribunal, which is currently pending before the Green bench ofNGT, at the Supreme Court of India. In addition,These appeals have been allowed by the expansion ofSupreme Court and the alumina refinery at LanjigarhNGT judgment has been set aside on hold since October 2010 becausegrounds of maintainability. However, the environmental approvalSupreme Court has been withheldgiven the Company, liberty to approach the High Court of Madras to challenge the orders of TNPCB. We then filed a petition before the High Court of Madras, Principal Bench challenging the impugned orders of TNPCB passed in 2013. The High Court vide its judgement dated August 18, 2020 dismissed the writ petition filed by the MoEF. On November 20, 2015,Company. The Company approached the MoEF granted environmental clearanceSupreme Court and challenged the said High Court order by way of a Special Leave Petition (“SLP”) to Appeal. After hearing the parties, the bench admitted the SLP. The application for interim relief for running the expansion of the Alumina Refinery up to 4 mtpa and environmental clearance up to 6 mtpa will be received as an amendment to existing EC after the completion of the land acquisition of the balance area of 666.03 HA. Further, consent to establish for 4 mtpa and consent to operateplant on a trial basis was heard on December 2, mtpa has also been obtained. However the environmental clearance for the expansion of Alumina Refinery at Lanjigarh was challenged by an individual Prafulla Samantra before the National Green Tribunal, wherein MoEF, Orissa State Pollution Control Board and Vedanta Limited have been made parties. We filed our response to challenge2020 and the matterSupreme Court had rejected such application for interim relief. The Interim Application on oxygen plant status is to be listed in due course. The main SLP is now listed for hearing on September 12, 2017. In addition, another individual hasAugust 17, 2021.

TNPCB through its order dated April 9, 2018 rejected the Company’s application for renewal of Consent to Operate (“CTO”) for its existing copper smelter plant in Tuticorin and operations at the plant have been suspended. The Company filed an interlocutory applicationappeal with the TNPCB Appellate Authority against the aforesaid rejection order. During the pendency of the appeal, TNPCB through its order dated May 23, 2018 ordered for electricity supply to the plant to be impleadeddiscontinued and the Tamil Nadu state government ordered the closure of the copper smelter plant on May 28, 2018. The said impugned orders are presently under challenge in SLP before the matter before National Green Tribunal, Kolkata.Supreme court and the SLP is due for hearing on August 17, 2021. As of the date of this annual report, the Company’s copper smelter plant in Tuticorin remains closed. Prolonged shutdown of our copper smelter at Tuticorin could be credit negative and marginally increase its leverage. See “Item 8.“Item 8: Financial Information—Information - A. Consolidated Statements and Other Financial Information—Information - Legal Proceedings.Proceedings” for further details.

ESL, our subsidiary filed an application for renewal of CTO on August 24, 2017 for the period of five years which was denied by Jharkhand State Pollution Control Board (“JSPCB”) on August 23, 2018. On August 25, 2018, the Hon’ble High Court of Jharkhand granted stay against said order of denial of CTO by JSPCB to allow to continue the operations. Further, the MoEF&CC passed an order revoking the environmental clearance of ESL. ESL challenged the revocation of the environmental clearance before Hon’ble Jharkhand High Court and on September 27, 2018, the High Court stayed the order of MoEF&CC. In December 2019, ESL has been granted the Stage I forest clearance by MoEF&CC. ESL is working out appropriate solution to secure the revised environmental clearance in due course. MoEF&CC, on August 25, 2020, has granted a Terms of Reference to ESL for 3 MTPA plant with conditions like fresh EIA/EMP reports and public hearing. The Hon’ble High Court of Jharkhand had extended the interim protection granted in the pending writ petitions till September 16, 2020. Hon’ble High Court on September 16, 2020 pronounced and revoked the interim stay for plant continuity with effect from September 23, 2020. ESL filed a SLP before Hon’ble Supreme Court against September 16, 2020 order for grant of interim status quo order and plant continuity. Vide order dated September 22, 2020, Hon’ble Supreme Court issued notice and allowed plant operations to continue till further orders. Public hearing has been concluded on December 16, 2020, and ESL has applied for grant of Environment Clearance to MoEF&CC on January 11, 2021 on Parivesh Portal of MoEF&CC and presented before EAC on February 11, 2021. The revised proposal has been submitted on March 14, 2021 post inputs from February 11, 2021 meeting. The application is under perusal at the MoEF&CC. See “Item 8 – Financial Information - A. Consolidated Statements and Other Financial Information - Legal Proceedings” for further details. Any prolongedunfavourable judgement will result in adverse impact on our operations at ESL.

In addition, if we were to fail to meet environmental requirements or to have a major accident or disaster, it may also be subject to administrative, civil and criminal proceedings by governmental authorities, as well as civil proceedings by environmental groups and other individuals, which could result in substantial fines, penalties and damages against it as well as orders that could limit or halt or even cause closure of ourits operations, any of which could have a material adverse effect on our businesses,its business, results of operations and financial condition or prospects or may result in the recognition of an impairment of our assets.condition.

ii) We are exposed to the political, economic, legal, regulatory and social risks of the countries in which we operate, and these may have a material adverse effect on our business, results of operations, financial condition or prospects

We have operations and projects in India, South Africa, Namibia, UAE, Ireland, Australia, Japan, South Korea, Taiwan and Liberia. We are exposed to the political, economic, legal, regulatory and social risks of the countries in which we operate or intend to operate. These risks potentially include expropriation and nationalization of property, instability in political, economic or financial systems, uncertainty arising from underdeveloped legal and regulatory systems, corruption, civil strife or labor unrest, acts of war, armed conflict, terrorism, outbreaks of infectious diseases, prohibitions, limitations or price controls on hydrocarbon exports and limitations or the imposition of tariffs or duties on imports of certain goods. For instance, steel demand is expected to see a surge in 2021 owing to recovering economy, sprouting demand and improving prices. This surge will be influenced by the Government’s intention to spend larger capital on infrastructure projects in the coming year which will have a multiplier impact on the demand of steel. Coking coal prices are index linked and hence volatile and any adverse movement in the same will have a material effect on our costs, results of operations and financial condition. Prices of iron and steel are influenced by several macro-economic factors. These include global economic slowdown, US-China trade war, supply chain destocking, government spend on infrastructure, the emphasis on developmental projects, demand-supply forces, the Purchasing Managers’ Index (“PMI”) in India and production and inventory levels across the globe, specially China.

Countries in which we have operations or intend to have operations have transportation, telecommunications and financial services infrastructures that may present logistical challenges not associated with doing business in more developed locales. Furthermore, we may have difficulty in ascertaining our legal obligations and enforcing any rights that we may have.

For example, under the terms of the shareholders’ agreement between the GoI and us, we were granted two call options to acquire all the shares in HZL held by the GoI at the time of exercise. We exercised the first call option on August 29, 2003. The GoI has disputed and refused to act upon the second call option. Also, GoI has disputed our exercise of the call option to purchase the remaining ownership interest of the GoI in BALCO. See “Item 4.“Item 3: Risk Factors - Proceedings against the GoI which has disputed our exercise of the call option to purchase its remaining ownership interest in BALCO” and “Item 4: Information on the Company—Company - B. Business Overview—Overview - Our Business—Business - Options to Increase Interests in HZL and BALCO.”.

Further, during fiscal year 2015, the Board of Directors was made aware that charges have been filed against several persons unconnected with the Group and one employee of Cairn India Limited who was previously arrested and subsequently released, for alleged possession and access to government information. Cairn India Limited has not been named in the charges. Cairn India Limited has in place a comprehensive compliance program and controls. Further, on an annual basis all directors and employees including senior management of Cairn India Limited provide affirmation of compliance of the code of business ethics adopted by the Company. Cairn India Limited also regularly undertakes review of its controls.

Political, legal, economic and commercial instability or community disputes in the countries and territories in which we operate could affect our operations. Some of our current and potential operations are located in or near communities that may regard such operations as having a detrimental effect on their environmental, economic or social circumstances.circumstances, though necessary efforts are taken for a healthy relationship and engagement with the local community through various initiatives including CSR activities on health, education, nutrition, livelihood, building physical and social infrastructure among others.

The continued success of our existing operations and future projects are in part dependent upon maintaining broad support and a healthy relationship with the respective local communities. Failure to identify and manage local concerns and expectations can give rise to disputes or have a negative impact on relations with local communities, and therefore affect our business and reputation.

Any such disputes or issues The consequences of community reaction, on various media including social media, could also have a material adverse impact on ourthe cost, profitability, and ability to finance our operations.or even the viability of an operation. Such events could lead to disputes with national or local governments or with local communities and give rise to negative publicity. material reputational damage. For instance, community protests were recently organized to protest the expansion of Vedanta Limited’s copper plant in Tamil Nadu. Subsequently TNPCB rejected the application filed to renew our CTO which expired on March 31, 2018 for our 400,000 tpa copper smelter at Tuticorin. The matter is currently sub-judice and our SLP in the Supreme Court regarding the same is listed for hearing next on August 17, 2021. See “Item 8: Financial Information - A. Consolidated Statements and Other Financial Information - Legal Proceedings” for further details.

If our operations are delayed or shut down as a result of political and community instability, our revenue growth may be constrained, and the long-term value of our business could be adversely impacted. Once we establish operations in a particular country, it may be expensive and logistically difficult to discontinue such operations, should economic, political, physical or other conditions deteriorate subsequently. All of these factors could have a material adverse effect on our business, results of operations, financial condition or prospects.

iii) Material changes in the regulations that govern our businesses, or the interpretation of recent legislation, could have a material adverse effect on our business, financial condition and result of operations

Mining in India is subject to a complex and comprehensive set of laws and regulatory requirements. See “Item 5. Operating and Financial Review and Prospects —“Item 4: Information on the Company - B. Business Overview - Our Business - Regulatory Matters — Mining Laws.matters.” These laws and regulatory requirements are subject to change. If we are affected, directly or indirectly, by the application or interpretation of any such statute, enforcement proceedings initiated under it, it may have a material adverse effect on our business, financial condition and result of operations.

The Mines and Minerals (Development and Regulations) AmendmentFor example, the Mineral Laws (Amendment) Act 2015dated March 13, 2020 (“MMDRA Amendment Act”MLAA”), notified towards the end of fiscal year 2015, brings greater transparency in the granting of mineral concessions through ane-auction process. It also removes certain uncertainties relating to automatic renewals of mine leases for future periods. However for existing mining leases, the MMDRA Amendment Act notifies an amount not exceeding royalty, to be contributed brought forth amendments to the District Mineral Foundation (“DMF”)MMDR Act. The MLAA has (i) liberalised the eligibility requirement to participate in coal auctions; (ii) removed the requirement for state governments to obtain prior approval of the benefitCentral Government to grant mining concessions; and (iii) enabled the transfer of people affected by miningapprovals (other than coal, lignite and an additional 2%atomic minerals), whereby all the rights, approvals, clearances and licenses vested with the previous lessee will be extended to the successful bidder for a period of royaltiestwo years. During these two years, the successful bidder is required to obtain all the required clearances in its own name.

Further, the National Mineral Exploration Trust. In September 2015,Policy of 2019, which replaced the GoI notified that an amount equalerstwhile National Mineral Policy 2008, introduces incentives to 30% of royalty fees is required to be contributed to the DMF for the benefit of the peopleenhance mergers and acquisitions in the areamining sector. If Vedanta Limited is affected, directly or indirectly, by mining.the application or interpretation of any such statute, as and when notified, including any enforcement proceedings initiated under it and any adverse publicity that may be generated due to prosecution, it may have a material adverse effect on its business, financial condition and result of operations.

In addition, our oil and gas business is also subject to complex and comprehensive regulations in IndiaIndia. New or changed regulations could require changes to the manner in which we conduct our business, and South Africa. result in an increase in compliance costs, which could have a material adverse effect on our business, financial condition and results of operation.

For example, upon the expiry of oil and gas licenses in India, contractors are generally required under the terms of relevant licenses or local law to conduct decommissioning or abandonment activities with regard to the equipment and wells and generally make good production sites. There can be no assurance that, in the future, we will not in the future incur decommissioning charges in excess of those currently provided for, since local or national governments may require decommissioning to be carried out in circumstances where there is no express obligation to do so, particularly in case of future oil and gas license renewals.

The provisions of Chapter X-A (sections 95 to 102) of the Income Tax Act, 1961, relating to General Anti-Avoidance Rules (“GAAR”) are applicable with effect from assessment year 2019 (fiscal 2018). The GAAR provisions propose to identify any arrangement with the primary purpose or one of the main purposes of such arrangement is to obtain a tax benefit, and satisfies at least one of the following tests (i) creates rights, or obligations, which are not ordinarily created between persons dealing at arm’s length; (ii) results, directly or indirectly, in misuse, or abuse, of the provisions of the Income Tax Act, 1961; (iii) lacks commercial substance or is deemed to lack commercial substance in whole or in part; or (iv) is entered into, or carried out, by means, or in a manner, that is not ordinarily engaged for bona fide purposes. If GAAR provisions are invoked, the tax authorities will have wider powers, including denial of tax benefit or a benefit under a tax treaty. In the absence of any precedents on the subject, the impact of the application of these provisions is uncertain.

The costs, liabilities and requirements associated with complying with existing and future laws and regulations may also be substantial and time-consuming and may delay the commencement or continuation of oil and gas exploration or metal mining and production activities. This and any changes to theapplicable regulations could require changes to the manner in which we conduct our business and result in an increase in compliance costs, which could have a material adverse effect on our business, financial condition and results of operations.

iv) We have significant asset concentration risks, and any interruption in the operations at those assets could have a material adverse effect on our business, financial condition and results of operations

Our results of operations have been and are expected to continue to be substantially dependent on the reserves, production and the cost of production at certain of our key assets, and any interruption in the operations, exploration and development activities at those assets for any reason could have a material adverse effect on our business, financial condition and results of operations.

For example, the Rajasthan block produced 85.1%90.4% of our average daily net operated production from our oil and gas business in fiscal year 20172021 and oil and gas from the Rajasthan block constituted 94.4%97.0% of our net aggregate proved oil and gas reserves on a barrel of oil equivalent basis as of March 31, 2017.2021. Our ongoing capital expenditure program has focused on development and exploration activities across all the assets with approximately 78.9%72.8% of the capital expenditure for fiscal year 20172021 having been invested in the Rajasthan block.

Further, our Rampura Agucha zinc mine produced 75.1%54.9% of the total mined zinc metal and 17.8% of total mined lead metal in concentrate that we produced in fiscal year 20172021 and constituted 45.6%28.4% of our total proven and probable zinc ore reserves as of March 31, 20172021 in India. Furthermore, the Codli mine in Goa constituted 10.6% of our proved and probable iron ore reserves in India as of March 31, 2017. Suspension of mining activities in Goa materially affected our operations and any future interruptionsAny interruption in the operations ofat these mines could have a material adverse effect on our results of operations and financial condition. For example, our total iron ore production declined from 13.8 mmt in fiscal year 2012 to 0.6 mmt in fiscal year 2015 due to the suspension imposed by the state government of Goa on the mining activities in the state of Goa. The ban has now been lifted and mining has commenced in all major mines. Any such suspension of mining operations from these minesassets could have a material adverse effect on our results of business, financial condition, results of operations and prospects.

v) Our business requires substantial capital expenditures and other resources to maintain ongoing operations and to grow our business through projects, expansions and acquisitions, whichwhere these projects, expansions and acquisitions are subject to additional risks that could adversely affect our business, financial condition and results of operations

In addition, future debt financing may limit our ability to withstand competitive pressures and render us more vulnerable to economic downturns. If we fail to generate or obtain sufficient additional capital in the future, we could be forced to reduce or delay capital expenditures, sell assets or restructure or refinance our indebtedness. In addition, there can be no assurance that our planned or any proposed future expansions and projects will be completed on time or within budget, which may adversely affect our cash flow. We evaluate acquisition opportunities in the course of its business and such acquisitions could be of a material nature.

In the last twelve months the COVID-19 pandemic led to unique challenges to the economy and significant volatility in the global capital markets. While the implementation of vaccines may have a positive impact on the debt market and economy at large, general economic conditions remain uncertain. Rounds of policy rate cuts done by central banks during the lockdown which led to increased inflation could be rolled back which may result in decrease in capital availability and may lead to increase in our borrowing cost.

Oil and gas exploration activities are capital intensive and inherently uncertain in their outcome. WeThere is a risk that we or the operators of assets in which we have an interest may undertake exploration activities and incur significant costs in so doing with no assurance that such expenditure will result in the discovery of hydrocarbons in commercially viable quantities.

In addition, there can be no assurance that our planned or any proposed future expansions and projects will be completed on time or within budget, which may adversely affect our cash flow.

Demands on management. Our efforts to continue our growth will place significant demands on our management and other resources and we will be required to continue to improve operational, financial and other internal controls, both in India and elsewhere. Our ability to maintain and grow our existing business and integrate new businesses will depend on our ability to maintain the necessary management resources and on our ability to attract, train and retain personnel with skills that enable us to keep pace with growing demands and evolving industry standards.

Acquisition risks. As part of our growth strategy, we intend to continue to pursue acquisitions to expand our business. There can be no assurance that we will be able to identify suitable acquisition, strategic investment or joint venture opportunities, obtain the financing necessary to complete and support such acquisitions or investments, integrate such businesses or investments, satisfy regulatory requirements for such acquisitions or that any business acquired will be profitable. If we attempt to acquirenon-Indian companies, we may not be able to satisfy certain Indian regulatory requirements for such acquisitions and may need to obtain the prior approval of the RBI

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Acquisition risks. As part of our growth strategy, we intend to continue to pursue acquisitions to expand our business. There can be no assurance that we will be able to identify suitable acquisition, strategic investment or joint venture opportunities, obtain the financing necessary to complete and support such acquisitions or investments, integrate such businesses or investments, satisfy regulatory requirements for such acquisitions or that any business acquired will be profitable. If we attempt to acquire non-Indian companies, we may not be able to satisfy certain Indian regulatory requirements for such acquisitions and may need to obtain the prior approval of the Reserve Bank of India (“RBI”) which we may not be able to obtain. The funding of such acquisitions by us may require certain approvals from regulatory authorities in India. In addition, acquisitions and investments involve a number of risks, including possible adverse effects on our operating results, diversion of management’s attention, failure to retain key personnel, risks associated with unanticipated events or liabilities and difficulties in the assimilation of the operations, technologies, systems, services and products of the acquired businesses or investments. Any failure to achieve successful integration of such acquisitions or investments could have a material adverse effect on our business, financial condition and results of operations.

vi) If our planned expansions and new projects are delayed, or if we experience cost overruns in our projects, our business, financial condition and results of operations may be materially and adversely affected

We have in recent years initiated significant expansion plans for our existing operations and planned greenfield projects, which involve significant capital expenditure. Although several of these initiatives have been completed, work remains to be completed in some of these projects. The timing, implementationOur planned expansions and cost of such expansionnew projects are subject to a number of risks that may adversely affect the prospects and profitability of such projects, including the following:

We do not currently have all of the leases, licenses, permits, consents and approvals that are or will be required for our planned expansion and new projects. There can be no assurance that we will be able to obtain or renew all necessary leases, licenses, permits, consents and approvals in a timely manner.

For example, our environmental clearance for the proposed copper smelter plant 2 (Tuticorin expansion project) expired on December 31, 2018. Our application for renewal of such environmental clearance was rejected by the MoEF&CC. Thereafter, we made a writ petitionnew application dated March 12, 2018, before the Expert Appraisal Committee of the MoEF&CC wherein a sub- committee was filed atdirected to visit the expansion project site prior to prescribing the terms of reference. In the interim, the High Court of Madras ordered us to cease construction and all other activities on site for the proposed expansion project with immediate effect. Separately, State Industries Promotion Corporation of Tamil Nadu (“SIPCOT”) through its letter dated May 29, 2018, cancelled 342.22 acres of the land allotted to us for the proposed expansion project, which was later stayed by High Court of Madras by its order dated October 3, 2018. Further, the TNPCB issued orders on June 7, 2018, directing the withdrawal of the consent to establish (“CTE”) for the expansion project, which is valid until March 31, 2023. The MoEF&CC has updated on its website that Vedanta Limited’s environmental clearance for expansion project will be considered for ToR either upon verdict of the National Green Tribunal (“NGT”) case or upon filing of a Report from the State Government/ District Collector, Thoothukudi. The Company has also filed Appeals before the TNPCB Appellate Authority challenging withdrawal of CTE by the grant of anTNPCB, the matter is pending for hearing and is listed on August 4, 2021 for filing Counter to the Appeals by TNPCB.

Moreover, the environmental clearance for the expansion of our copper smelting unit at Tuticorin, which was dismissed by the High Court of Madras through its order dated April 28, 2016. Further, the expansion of our alumina refinery at Lanjigarh has been on hold since October 2010 because the environmental approval was renderednon-operational by the MoEF. On November 20, 2015, the MoEF granted environmental clearance for the expansion of the Alumina Refinery for up to 4 mtpa and EC up to 6 mtpa will be received as an amendment to existing EC after the completion of the land acquisition of the balance area of 666.03 HA. Further, consent to establish for 4 mtpa and consent to operate 2 mtpa has also been obtained. However the environmental clearance for the expansion of the Alumina Refinery at Lanjigarh was challenged by an individual, Prafulla Samantra, before the National Green Tribunal,NGT, where the MoEF&CC, the OrissaOdisha State Pollution Control Board and Vedanta Limited have been made parties. We filed our response to challenge andPleading in the matter is listedcomplete and pending for hearing on September 12, 2017. In addition, another individualof arguments, however, the same has filed an interlocutory applicationnot been posted owing to be impleadedthe paucity of judges in the matter before National Green Tribunal , Kolkata.Tribunal. It is pertinent to note that the Hon’ble NGT has not passed any interim order staying the project as prayed by the appellant. See “Item“Item 8. Financial Information—Information - A. Consolidated Statements and Other Financial Information—Information - Legal Proceedings.” for further details.

Moreover, we are currently undertaking exploration programs in our Rajasthan and other oil blocks. Also, Vedanta Limited- oil and gas business has secured 51 blocks (41 blocks in OALP I and any10 blocks in OALP II and III) and 2 Discovered Small Fields (“DSF”) blocks in the Open Acreage Licensing Policy (“OALP”) introduced by the GoI and revenue sharing contracts (“RSC”) have been signed for it. Vedanta Limited- Oil and gas business has committed the work program to be completed during the currency of Initial Exploration Phase and in the event of non-fulfillment of the committed work program, the liquidated damages would become payable for the shortfall as specified in the RSC. Any delays in this exploration program or shortfall in achieving the necessary output levels could materially and adversely affect our business, financial condition and results of operations.

In fiscal year 2013, we announced an expansion of ourzinc-lead mines capacity to 1.2 mtpa (later on revised to 1.25 mtpa) in a phased manner until fiscal year 20192022 in our Zinc India business. This will involve sinking of underground shafts and developing underground mines. Benefits from these growth projects started in fiscal year 2016, even though project activities will continue until fiscal year 2019.2022. Annual capital expenditure towards these projects is expected to be approximately $ 250105 million. Any delays in the execution of the expansion plans or any shortfall in achievement of the expansion objectives may adversely affect our business, financial condition and results of operations.

We recently acquired ESL under the Insolvency and Bankruptcy Code, 2016 (“IBC”), in line with the Resolution Plan approved by Hon’ble National Company Law Tribunal (“NCLT”), Kolkata. ESL was incorporated in December 2006 to set up an integrated steel plant designed to produce 2.5 mtpa of steel. This project started operations in year 2009 and the first phase of 1.5 mtpa steel plant was completed in fiscal year 2012. Subsequently, the next phase to reach to the full design capacity was started but was not completed due to various reasons. As a result, project materials including semi-constructed blast furnace and horizontal coke oven plant are not in operation. The usability of project material will depend on life cycle assessment, finalization of technology and detailed project report. Hence, expansion cost may increase if it is discovered later that some of the project material is not usable.

Furthermore, the GoI is contemplating a proposal to demarcate certain forest areas in India, based on the permissibility of using such land for mining purposes. The identification of designated areas where mining activities will, or will not, be permitted will be based on mapping forest and coal reserves as well as field-level studies. While this proposal remains in discussion, the MoEF&CC has denied the grant of environmental and forest diversion clearances applied for in certain areas identified as restricted areas. In the event the proposal is implemented, our current and any future mining activities and related expansion plans and new projects may be affected, which would adversely affect our business prospects and results of operations or otherwise hinder its borrowing capabilities. Any delay in completing planned expansions, revocation of existing clearances, failure to obtain or renew regulatory approvals,non-compliance with applicable regulations or conditions stipulated in the approvals obtained, suspension of current projects, or cost overruns or operational difficulties once the projects are commissioned may have a material adverse effect on our business, results of operations or financial condition. Further, our decision to undertake or continue any of these projects will be based on assumptions of future demand for our products which may not materialize. As a consequence of project delays, cost overruns, changes in demand for our products and other reasons, we may not achieve the reductions in the cost of production or other economic benefits expected from these projects, which could adversely affect our business, financial condition and results of operations.

vii) If we are unable to secure additional reserves of oil and gas, zinc, copper, iron ore and bauxite that can be extracted at competitive costs or cannot extract existing reserves at competitive costs, our profitability and operating margins could decline

If our existing oil and gas, zinc, copper, iron ore and bauxite reserves cannot be extracted at competitive costs or if we cannot secure additional reserves that can be extracted at competitive costs, we may become more dependent upon third parties for the metal ore, or our production volumes will decline. As our reserves decline as we extract the mineral ore or crude oil, our future profitability and operating margins depend upon our ability to access reserves that have geological characteristics enabling extraction at competitive costs. Replacement reserves may not be available when required or, if available, may not be of a quality capable of being extracted at costs comparable to the existing or exhausted mines and fields.

We may not be able to accurately assess the geological characteristics of any reserves that we acquire, which may adversely affect our business, financial condition and results of operation. Because the value of reserves is calculated based on that part of our mineral and oil and gas deposits that are economically and legally exploitable at the time of the reserve calculation, a decrease in commodity prices may result in a reduction in the value of any reserves that we obtain as less of the deposits contained therein would be economically exploitable at lower prices. For example, during fiscal year 2016, we recordedrecognised an impairment charge onof assets at our oil and gas assetsbusiness in fiscal year 2020 of Rs. 322,998an amount equal to ₹ 135,031 million ($ 4, 980.7 million) mainly relatingwhich was triggered majorly due to the Rajasthan block, triggered by the significant fall in crude oil prices. Similarly, with a substantial reduction in iron ore prices we recorded an impairmentprimarily due to the outbreak of Rs. 14,900 million ($229.8 million) in fiscal year 2016 for our Liberia assets.COVID-19.

Exhaustion of reserves at particular mines or oil fields may also have an adverse effect on our operating results that is disproportionate to the percentage of overall production represented by such mines or oil fields. Further, with depletion of reserves we will face higher unit extraction costs.

Our future production depends significantly upon our success in finding or acquiring and developing additional reserves, adopting and using the appropriate technology. If we are unsuccessful, we may not meet our production targets, which could adversely affect our business, financial condition and results of operations.

Our ability to obtain additional reserves in the future could be limited by restrictions under our existing or future debt agreements, competition from other metal and oil and gas companies, lack of suitable acquisition candidates, government regulatory and licensing restrictions, difficulties in obtaining mining leases and surface rights or the inability to acquire such properties on commercially reasonable terms, or at all. To increase production from our existing mines or oil fields, we must apply for governmental and joint operation partner approvals, which we may not be able to obtain in a timely manner, or at all.

The results of appraising discoveries are uncertain more so in our oil and gas business, which may result in reductions in projected reserves and production declines and may involve unprofitable efforts, not only from dry wells, but also from wells that are productive but uneconomic to develop. Furthermore, as our ore reserves decline as we mine the ore, our future segment results and segment margins depends upon our ability to access ore reserves with geological characteristics that allow mining at competitive costs and replacement reserves may not be available when required. Appraisal and development activities may be subject to delays in obtaining governmental approvals or consents,shut-ins of connected wells, insufficient storage or transportation capacity or exhaustion and depletion of reserves or other geological and mechanical conditions all of which may result in a material increase of our costs of operations or delay anticipated revenues.revenues

viii) Our operations are subject to risks that could result in decreased production, increased cost of production and increased cost of or disruptions in transportation, power generation, mining and oil exploration

We are subject to operating conditions and events common to the industry in which we operate which are beyond our control that could, among other things, increase our mining, transportation or production costs, disrupt or halt operations at our mines and production facilities permanently or for varying lengths of time or interrupt the delivery of our products to our customers. The occurrence of any of these conditions or events could have a material adverse effect on our business, financial condition orand results of operations. These conditions and events include:

Further, our oil processing facility in the northern fields of the Rajasthan block designed to separate oil, gas and water may not function as designed over the life of the fields. This may result in the crude oil not meeting sales specifications of pipelines, which may mean that any such crude oil either not being evacuated through our existing pipeline or cannot be sold or will be sold at a significant discount to the agreed crude oil sales price.price agreed in the relevant crude oil sales contract.

WeFurther, the Company is successful bidder for Kuraloi (A) North Block with a mine capacity of 8 mtpa, which can additionally help meet group’s captive coal requirements

For example, we established our aluminium business in Odisha through ana joint venture agreement with OrissaOdisha Mining Corporation Limited to establish an aluminium smelter and associated captive power plants in the Lanjigarh and Jharsuguda district in Odisha. A memorandum of understanding(“OMC”) through which OMC would provide us with the Government of Odisha (through Orissa Mining Corporation Limited) provides that the Government of Odisha wouldbauxite supply, us 150 million tons of bauxite ore. Duringbut during fiscal year 2016, Orissa Mining Corporation has, by a separate action, terminated the joint venture agreement was terminated by OMC by a separate action. As a result, Vedanta had to procure bauxite from global suppliers to meet its requirements, resulting in high logistics costs and complexity in supply chain pushing up the cost of production for whichcaptive alumina. The remaining alumina requirements are also purchased from global suppliers at index-linked prices. However, in April 2018, we entered into a long-term contract with OMC for the Company is pursuing the appropriate coursesupply of action. The matter is pending with the OMC. However, the delay in obtaining captive bauxite supplyfor five years from its Kodingamali bauxite mines as per the termsstate policy, which accounts for approximately 50% of memorandum of understanding has resulted in our Orissa aluminium business reporting losses since inception. Any further delays in securing assuredtotal bauxite supplies for our Orissa aluminium business could continue to adversely affect our business, financial condition and results of operations.requirement.

Further, we may not receive the coal block allocations that we expect or may not be allowed to use such allocations for our commercial power generation business. Any coal block allocations that we receive may not be sufficient for our planned operations and we may not be successful in procuring a sufficient supply of coal at economically attractive prices, or at all. Additionally, we are subject to certain restrictive covenants contained in the coal block allocation agreements including specified end use and submission of mining plans within a specified period.

Our oil processing facility in the northern fields of the Rajasthan block require reliable fuel supply for power generation and heating, to ensure the quality of our crude oil production. Currently, the fuel supply for power generation and heating requirements are being met through associated natural gas from the Mangala field, supplemented as required by natural gas from the Raageshwari Deep gas field. While the current gas supply is adequate to ensure a sufficient fuel supply, there is no guarantee that the current estimates of the future fuel requirements can be supplied from the gas associated with existing and future oil production, supplemented by gas supply from the Raageshwari Deep gas field. In such an event, an alternative energy source would need to be obtained. Further, this has been augmented by alternative energy source in form of grid power supply of27 MW capacity. Sustained failure of power systems due to unavailability of fuel supply and/or grid power availability could lead to operations disruption, having a material adverse effect on our results of operations and financial condition.

We inject hot water and polymer to maintain reservoir pressure and to optimize crude oil recovery at the Mangala, Bhagyam and Aishwariya oilAishwarya fields. The primary source water injection for these fields is and will continuethe back produced water to be providedwhich water from water production wells drilled in the Thumbli saline aquifer inis added to make up the Barmer Basin.total injection requirements. Extraction of saline water also requires the approval of the relevant government authorities. There can be no assurance that the estimated impact of the expected water extraction on the flow of groundwater is accurate. A failure to extract the required amount of water during the life of the existing and currently planned developments or an inaccurate prediction of the impact on the flow of groundwater, or delay or cancellation of the approval from the government authorities to extract saline water, may require us to access alternative sources of water. Although the relevant government authority has given its consent for the extraction of saline groundwater from Thumbli, it is possible that we will be perceived to be directly or indirectly responsible for any shortage of fresh water or deterioration in water quality. In such an event, the local authorities may require us to access alternative water sources or holdinghold us responsible for any contamination of the fresh water supply by saline groundwater from the aquifer. We are yet to get approval from Central Ground Water Authority (“CGWA”) for abstraction of saline water.

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Power purchase agreements. The power purchase agreements and other agreements that we have entered into or may enter into may require us to guarantee certain minimum performance standards, such as plant availability and generation capacity, to the power purchasers. If our facilities do not meet the required performance standards, the power purchasers with whom we have power purchase agreements may not reimburse us for any increased costs arising as a result of our plants’ failure to operate within the agreed norms. For example, we have disputes with customers at our TSPL and Jharsuguda operations. For further details see “Item 8: Financial Information - A. Consolidated Statements and Other Financial Information - Legal Proceedings” and “Item 4: Information on the Company - B. Business Overview”.

Furthermore, oil and gas exploration and production operations by us or operators of assets in which we have an interest will involve risks normally incidental to such activities, including blowouts, oil spills, gas leaks, explosions, fires, equipment damage or failure, natural disasters, geological uncertainties, unusual or unexpected rock formations and abnormal pressures. Offshore operations are also subject to natural disasters as well as to hazards inherent in marine operations and damage to pipelines, platforms, facilities andsub-sea facilities from trawlers, anchors and vessels. Our producing fields are located in areas that can be subject to extreme weather conditions, flooding, fire, theft, earthquake and other natural disasters. Additionally, we or the operators of assets in which we have an interest may face interruptions or delays in the availability of oil field services, equipment or infrastructure, including seismic survey vessels, rigs, pipelines and storage tanks, on which oil and gas exploration and production activities are dependent.

xi) Defects in title or loss of any leasehold interests in our properties could limit our ability to conduct operations on such properties or result in significant unanticipated costs

Our ability to mine the land on which we have been granted mining lease rights and to make use of our other industrial and office premises is dependent on the acquisition of surface rights. Surface rights and title to land are required to be negotiated separately with land owners, although there is no guarantee that these rights will be granted. Any delay outside of the ordinary course of business in obtaining or inability to obtain or any challenge to the title or leasehold rights to surface rights could negatively affect our business, financial condition orand results of operations.

In addition, there may be certain irregularities in title in relation to some of our owned and leased properties. For example, some of the agreements for such arrangements may not have been duly executed and/or adequately stamped or registered in the land records of the local authorities or the lease deeds may have expired and not yet been renewed. Since registration of land title in India is not centralized and has not been fully computerized, the title to land may be defective as a result of a failure on our part, or on the part of a prior transferee, to obtain the consent of all such persons or duly complete stamping and registration requirements. The uncertainty of title to land may impede the process of acquisition, independent verification and transfer of title, and any disputes in respect of land title that we may become party to may take several years and considerable expense to resolve if they become the subject of Courtcourt proceedings. Further, certain of these properties may not have been constructed or developed in accordance with local planning and building laws and other statutory requirements, or it may be alleged that such irregularities exist in the construction and development of our built up properties. For example, BALCO has 1,804.67 acres of government land out of which 1,751 acres is situated in forest land, which was given on lease by the state government. The lease deed has not been executed as on date as a petition was filed in the Supreme Court against BALCO in relation to the alleged encroachment of land on which our Korba smelter is situated. Any such dispute, proceedings or irregularities may have an impact on our business, financial condition and results of operations. The matter, at present, is pending before the Supreme Court for consideration on Central Empowered Committee’s report. BALCO has filed interlocutory applications against the orders dated August 19, 2019 passed by the Tehsildar whereby the Tehsildar has held that encroachments by the persons against whom BALCO has filed applications under Section 250 of the CG Land Revenue Code is on forest land. The issue of forest land is sub-judice before the Supreme Court. We have also filed an interlocutory application to stop the survey of the land which state government has proposed under Rajiv Gandhi Ashray Yojna. The Supreme Court shall hear the matter in due course. For further details see “Item 8: Financial Information - A. Consolidated Statements and Other Financial Information - Legal Proceedings.”

For example, ESL has about 455.23 acres of land which is claimed by the Forest Authorities to be forest land. This is an alleged violation which resulted in the revocation of the environmental clearance. The revocation of environmental clearance has been challenged in the Hon’ble High Court of Jharkhand. The Hon’ble High Court has granted interim relief for plant operations pending regularisation. However, in the business interest, we have initiated the process of regularizing the same, without prejudice to all our legal rights and contentions, as per government process. The MoEF&CC, has granted ex-post facto in-principle approval dated December 17, 2019, on the application submitted by ESL for conversion of 455.23 acres of forest land subject to conditions. ESL is working out appropriate solution to secure the revised environmental clearance in due course. MoEF&CC, on August 25, 2020, has granted a Terms of Reference to ESL for 3 MTPA plant with conditions like fresh EIA/EMP reports and public hearing. The Hon’ble High Court of Jharkhand had extended the interim protection granted in the pending writ petitions till September 16, 2020. Hon’ble High Court on September 16, 2020 pronounced and revoked the interim stay for plant continuity with effect from September 23, 2020. ESL filed a SLP before Hon’ble Supreme Court against September 16, 2020 order for grant of interim status quo order and plant continuity. Vide order dated September 22, 2020, Hon’ble Supreme Court issued notice and allowed plant operations to continue till further orders. Public hearing has been concluded on December 16, 2020, and ESL has applied for grant of Environment Clearance to MoEF&CC on January 11, 2021 on Parivesh Portal of MoEF&CC and presented before EAC on February 11, 2021. The revised proposal has been submitted on March 14, 2021 post inputs from February 11, 2021 meeting and presented before EAC on March 30, 2021. A revised proposal will be submitted post adding the inputs of the March 30, 2021 meeting. Besides the above, the State Government has already approved for lease of the Government land in the Project awaiting execution of lease deed.

xii) Third party interests in our subsidiary companies, restrictions due to stock exchange listings of our subsidiary companies as well as third party interest in assets of our subsidiary companies will restrict our ability to deal freely with our subsidiaries or such assets of our subsidiary companies, which may have a material adverse effect on our results of operations and financial condition

We do not wholly own all of our operating subsidiaries, although we hold the majority of the total outstanding share capital in all of our subsidiaries. Although we have direct or indirect management control of HZL, BALCO, and Black Mountain Mining and ESL, each of these companies has other shareholders who, in some cases, hold substantial interests. As a result of thenon-controlling interests in our subsidiaries and affiliates and the Indian stock exchanges listings of HZL, these subsidiaries may be subject to additional legal or regulatory requirements, or we may be prevented from taking certain courses of action without the prior approval of a particular or a specified percentage of shareholders and/or regulatory bodies (under shareholders’ agreements, relationship agreements or by operation of law). The existence of minority or other interests in, and stock exchange listings of our subsidiaries may limit our ability to increase our equity interests in these subsidiaries, combine similar operations, utilize synergies that may exist between the operations of different subsidiaries, move funds among the different parts of our businesses or reorganize the structure of our business in a tax efficient manner, which may have a material adverse effect on our business, financial condition orand results of operations.

ONGC amongst others is our joint operation partner with respect to all operating assets of our oil and gas business, and we operate all of our oil and gas assets.assets except KGONN-2003/1. Accordingly, any mismanagement of an oil and gas asset by us may give rise to liabilities to our joint operation partners in respect of such asset. There is also a risk that other parties with interests in our assets may elect not to participate in certain activities relating to those assets which require such party’s consent. In such circumstances, it may not be possible for such activities to be undertaken by us alone or in conjunction with other participants at the desired time or at all. In addition, other joint operation partners may default in their obligations to fund capital or other funding obligations in relation to the assets. In certain circumstances, we may be required under the terms of the relevant operating agreement to contribute all or part of any such funding shortfall, which could adversely impact our business, financial condition or resultswill increase the cost of operations. In order to mitigate such risks, execution of projects is undertaken after aligning the partners for the oil & gas development activities.

xiii) Proceedings against the GoI which has disputed our exercise of the call option to purchase its remaining ownership interest in BALCO

There are certain proceedings that are currently ongoing with respect to the exercise of a call option to acquire the remaining shares of BALCO held by the GoI, in accordance with the terms of the shareholders’ agreement between the GoI and us. The amount claimed under this proceeding is presently unquantifiable. The arbitration tribunal formed under the directions of the High Court of Delhi declared an award rejecting ourBALCO’s claim regarding the exercise of the option on January 22, 2011. According to the award, certain clauses of the shareholders’ agreement were held to be void, ineffective and inoperative as being in violation of sub section (2) of Section 111A of the erstwhile Companies Act, 1956. We filed an application before the High Court of Delhi to set aside this award under Section 34 of the Arbitration and Conciliation Act, 1996. OurThe application is scheduledwould be listed for hearing on October 17, 2017.in due course. See “Item 4.“Item 4: Information on the Company—Company - B. Business Overview—Overview - Our Business—Business - Options to Increase Interests in HZL and BALCO.BALCO”. There is no assurance that the outcome of our challenge of the award will be favorable to us. In such an event, we may be unable to purchase the GoI’s remaining 49.0% interest in BALCO or may be required to pay a higher purchase price, should it decide to consummate such purchase, which may have a material adverse effect on our business, financial condition and results of operations.

xiv) Proceedings againstby the GoI which has disputed our exercise of the call option to purchase its remaining ownership interest in HZL

We commenced arbitration proceedings against the GoI with respect to exercise of our call option to acquire the remaining shares of HZL held by the GoI, in accordance with the terms of the shareholders’ agreement between the GoI and us. The GoI denied our right to exercise the option on the basis that the shareholders’ agreement contravenes the provisions of Section 111A of the erstwhile Companies Act, 1956 and is therefore void. The next dateWhile the Arbitration was in process, a PIL was filed seeking restraint on disposal of hearingresidual shares by GoI the Supreme Court on January 19, 2016 ordered the status quo be maintained with respect to any further disinvestment of government interest in HZL until further orders are passed by the arbitralSupreme Court. The Supreme Court, on August 13, 2020 however removed the status quo order in place to the extent that arbitration proceedings can continue with respect to our claim call option rights under the shareholder agreement. Pursuant to the Supreme Court order we had written to the arbitration tribunal for commencement of arbitration proceedings and tribunal is yet to confirm the date for resumption of arbitration proceedings. The PIL seeking restraint on April 21, 2018further disinvestment is tentatively listed for July 19, 2021. See “Item 4.“Item 4: Information on the Company—Company - B. Business Overview—Overview - Our Business—Business - Options to Increase Interests in HZL and BALCO.BALCO”. There can be no assurance that the arbitral proceedings will result in a favorable outcome for us. In such an event, we may be delayed in the purchase of, or may be unable to purchase, the GoI’s remaining 29.5% interest in HZL or may be required to pay a purchase price in excess of the market value or fair value of those shares, which may have a material adverse effect on our business, financial condition and results of operations.

xv) Future production from our assets may vary from the forecast