C'est chaud pour camarade ANIL

[mgauthi4]

KOLKATA/MUMBAI:Billionaire Anil Agarwal may face problems on July 27 when he addresses shareholders at the annual general meeting of his London-listed mining company Vedanta Resources.

The UK-based pension fund advisory PIRC and Aviva Investors, a shareholder in Vedanta, have urged members to oppose the resolution that seeks approval to award bonuses to three executives of Vedanta, including chairman Anil Agarwal. The mining major has sought shareholders' nod for raising the total remuneration for Agarwal by 26% to £1.7 million.

The company has also proposed to increase deputy executive chairman Navin Agarwal's pay by 39% to about £1.4 million and chief executive Mahendra Mehta's pay package by 52% to £482,000. Aviva which owns 0.3% in Vedanta, has said it would withhold approval for these resolutions.

Investor advisory PIRC said the bonus payouts which are linked to safety issues, are "contradictory" as the approval is sought for a period when over 26 employees of Vedanta were killed in various accidents.

In a report communicated to Vedanta shareholders, PIRC said: "The bonus awards are dependent on effective stakeholder management, which resulted in recognition and achievement of awards in corporate social responsibility, safety, quality, business excellence and best-employer status. In light of the loss of 26 lives occurring across group operations and projects, it is not clear how the award of bonuses can be reconciled with stated policy."

AVedanta Resources spokesperson declined to comment on the issue. The London-listed mining major last year faced protests from environmental activists who opposed Vedanta's plans to mine for bauxite on a hill considered sacred by tribals in Orissa. Aviva was also part of the protests started to stop mining activity in Niyamgiri. The project was later cancelled by the government.

[mgauthi4]

LONDON: Activists will demonstrate against mining majorVedanta Resources on Wednesday during its 2010 annual general meeting here, demanding that the company give up itsNiyamgiri mine in Orissa.

Vedanta was reportedly denied permission to mine in the Niyamgiri Hills, home of the Dongria Kondh tribe who have been vigorously protesting against the mining.

The issue is now in the Supreme Court. A spokesperson of campaign groupSurvivor International told PTI that at tomorrow's AGM the company will be told by protesters inside and outside the meeting to respect the stance of both the government and the Dongria Kondh and to give up on the Niyamgiri mine.

Actor and Survival supporterMichael Palin, who has visited the Dongria Kondh, said today: "I am very disappointed that the decision to stop Vedanta's mine by India's Environment Minister is now being challenged in the Courts. Vedanta needs, once and for all, to abandon this ill-conceived project and respect the rights of the Dongria Kondh people."

Several shareholders have reportedly disinvested a total of over USD 40 million from Vedanta in protest over the Niyamgiri mine project and other concerns over the company's human rights and environmental record.

Asset manager Aviva Investors has declared that it will not support key resolutions at tomorrow's AGM due to concerns over the company's behaviour.

Stephen Corry, Director ofSurvival International, said today, "When shareholders are disinvesting, and expressing serious concerns about company conduct, it's time to reconsider policy. Vedanta should respect the resounding 'no' from the Indian government and abandon the Niyamgiri mine: it might go some way to righting its appalling human rights record."