Essar NLD licence receives the go-ahead from DoT

But Hutchison Essar application remains pending.

NEW DELHI: The national long distance (NLD) application of Essar group-owned Shippingstop.com has been cleared in principle by the Department of Telecommunications (DoT), it is learnt.

Essar would be issued a letter of intent (LoI) shortly for NLD telecom service. Interestingly, Hutchison Essar, the joint venture between Hong Kong-headquartered Hutchison Whampoa and Ruias-promoted Essar, has also applied for an NLD licence and that application is pending with the government. Essar holds over 33% in Hutchison Essar.

Referring to Shippingstop.com's NLD licence, an Essar official told DNA Money, "It will be an enabling licence for the group."

He did not elaborate on how and when that licence will be used.

The Essar-owned Shippingstop.com was running a portal till some time ago.

A standalone NLD licence for the Essar group may once again trigger market speculation on the 'relations' between the partners-Hutchison and Essar, an industry source pointed out.

Recently, there have been indications that Hutch-Essar's proposed initial public offering may get delayed.

The delay, telecom analysts said, is due to the Essar group's concerns over the equity sale by Hutchison Telecom International Ltd (HTIL) to Egypt's Orascom.