Vedanta Resources Plc (VED) is planning merge two of its units, Sesa Goa Ltd. (SESA) and Sterlite Industries (India) Ltd. (STLT) in an attempt to reduce its debt in the country.

Sesa Goa is a leading iron ore while Sterlite Industries is involved in production of copper and aluminium. Vedanta Resources had earlier tried to merge its copper, aluminium and iron ore business units in 2008 but it had to abandon the plans following stiff opposition from investors.

The company is not planning to once again try to integrate all its operations under a single unit. According to rumors, Sesa Goa is likely to be merged into Sterlite Industries. Vedanta is also considering transferring its shares in Cairn India to Sterlite. Vedanta currently owns 59% stake in Cairn India, which is acquired last year.

Company officials have not commented on the matter. Experts say that the merger is just an attempt by the company to improve its balance sheet figures.

Vedanta, which is the parent company does notgenerate any dort of operating income and it only directly operates loss making Vedanta Aluminium. The company has been rising debt and consolidation will allow it to restructure it balance sheet and strengthen its financial position.