EU Trade Commissioner Peter Madelson has spoken to Commerce and Industry Minister Kamal Nath and has taken up the issue of Vodafone's interest to buy out Hutchison's 67 stake in Hutch Essar, official sources said.
Nath is understood to have informed Mandelson about India's FDI policy on telecom allowing 74 per cent foreign shareholding, on which the government is yet to come out with final guidelines.
EU's support for Vodafone comes within days of the UK-based firm's representatives meeting senior officials of department of telecom seeking clarity on FDI policies.
However, Vodafone's possible bid for HEL does not involve any regulatory concern since the existing policies do not bar foreign investment in the telecom sector except on security related issues.
Mandelson's intervention is seen as a reversal of roles with Nath, who had supported NRI steel tycoon L N Mittal's bid for acquiring Mittal Steel's nearest rival Arcelor.