In its first formal acknowledgement, Essar group chairman Shashi Ruia said, "Of course we are interested."

"It is our company. Why should we do a due diligence," he said when asked whether Essar would study the books of the company. Essar owns 33 per cent in HEL.

Ruia's comments come on a day when UK's Vodafone commenced due diligence on Hutch-Essar Ltd. Besides, Reliance Communications and Hinduja Group have gone public about their intention to buyout the country's fourth largest mobile company.

Malaysia's Maxis Communications and Egypt's Orascom are also believed to be keen on acquiring HEL, but are yet to formally say so.

Ruias had held several rounds of discussions with their Hong Kong-based partner on issues of valuation, which is being pegged at up to $21 billion.

The two partners (Essar and Hutch) have also been at loggerheads over the issue of Right of First Refusal, with an HTIL spokesperson saying that Essar need be given RoFR only in the "limited case of a sale to certain Indian telecom companies. There is no RoFR over any other buyer."

However, Essar is believed to be disputing this interpretation of the clause pertaining to RoFR, while claiming it can exercise the right automatically if HTIL's stake dips below 40 per cent in the joint venture.

Both partners are understood to have taken legal opinion on the issue of RoFR. RoFR would not be applicable in case Essar, which owns 33 per cent in the JV, decides to buyout the remaining stake.