DAVOS, Jan 27: India hopes Vodafone will be able to establish itself there quickly, giving the global telecoms group’s plan to take over local player Hutchison Essar a welcome boost.

“We do hope that Vodafone will be able to establish its footprint in India sooner rather than later,” Junior Minister for Industries Ashwani Kumar said after meeting Vodafone Chief Executive Arun Sarin on the fringes of the World Economic Forum.

The two discussed Vodafone's plans to tap into India’s expanding telecoms market, although Sarin was not available to comment on the progress of the proposed bid for Hutchison Essar.

“My sense in meeting Sarin was that things are progressing well for Vodafone,” Kumar told Reuters in an interview after the meeting, adding that details of commercial negotiations were nothing to do with the Indian government.

Britain's Vodafone is being challenged by India’s Reliance Communications, the Hinduja group and Hutchison's minority partner in the venture, Indian group Essar, in the race for Hutchison Essar.

Valuation estimates for Hutchison Essar, where a 67 per cent controlling stake owned by Hong Kong conglomerate Hutchison Whampoa is on offer, have climbed to as much as $20 billion from around $13.5 billion as the list of suitors expands.

Asked whether Sarin had sought reassurances over the bid process from the Indian government, Kumar said:”I don't think he specifically asked for any reassurances. The Indian government telcom policy is clear-cut and it is well laid out.” Winning control of Hutchison Essar would give Vodafone a strong asset and 22 million customers in a fast growing market.

India’s main mobile operators now share nearly 150 million customers, but with India’s population over 1.1 billion, it translates to less than two out of 100 people owning a mobile.

For Vodafone, which faces slowing growth in its key Western European markets, a strong presence in India could provide it with a vital growth engine.

Vodafone owns a 10 per cent stake in India's top mobile company Bharti Airtel, but does not stand a chance of getting control as Bharti's main shareholders don't want to sell.—Reuters