MUMBAI (Reuters) - The boards of oil company Cairn India (>> Cairn India Limited) and its parent, Vedanta Ltd (>> Vedanta Ltd), will meet on Sunday to discuss a potential merger, both companies said.

Vedanta Ltd. is the operating unit of London-listed mining and energy group Vedanta Resources Plc (>> Vedanta Resources plc).

Vedanta this week signalled it was considering merging the two Indian units, as it tries to resolve a mismatch between its debt, held at the top of the group, and its cash, largely generated by subsidiaries, including Cairn.

In separate notices to the Bombay Stock Exchange on Saturday, the companies said their boards would meet to "consider and evaluate" a merger.

On Friday, India's oil minister, Dharmendra Pradhan, told Reuters he had met Cairn executives this week to discuss the potential merger and a source familiar with the matter had said the deal could be announced as early as Sunday.

(Reporting by Aman Shah in Mumbai; Editing by Clarence Fernandez)

Stocks treated in this article : Cairn India Limited, Vedanta Resources plc, Vedanta Ltd