Mumbai, April 3 -- Mining conglomerate Vedanta Ltd is on track for the demerger of its key businesses, including aluminium, into separate listed companies and allocation of debt across the demerged entities would be done in proportion to their assets, sources familiar with the matter said.

Vedanta is in advanced stages of engagement with its lenders on the issue, and the process has proceeded smoothly, they said.

There is clarity about the allocation of debt across entities after the demerger. The debt will get divided amongst the resulting demerged entities in the ratio of assets getting allocated to them as per the prescribed rules and regulations, a senior company official said at a recently concluded investor event.

Citing the exam...