Vedanta Ltd.’s creditors and shareholders approved a long-standing plan to split the Indian mining conglomerate into five businesses, a step that will simplify the group’s structure and reduce its debt burden.

Vedanta's shareholders and lenders have approved the oils-to-metals conglomerate's plans to split into five separate entities, the company announced on Thursday, with nods from nearly all of its secured and unsecured creditors.

The demerger is expected to enable greater focus of the Vedanta management on the relevant businesses thereby allowing further streamlining of operations and more efficient usage of assets and leveraging of opportunities.

Both secured and unsecured lenders will discuss the much-awaited overhaul plan on Feb 18 and vote on it, according to a statement from the company

Vedanta Limited approved demerger into five sector-specific companies, creating global scale businesses with focused operations and market potential.

Nearly all shareholders and creditors gave the nod to the planned demerger to craft four new companies: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, and Vedanta Iron and Steel. Vedanta Ltd will also house the company's base metals operations.

The London-based parent has cut its debt by more than $4 billion in the past two years, and aims to repay $3 billion more over the next three years.