According to news reports, Essar's bid for seven new licences in the circles of Orissa, Madhya Pradesh, northeast, Assam, Bihar, Jammu & Kashmir and Himachal Pradesh, has created differences with Hutchison Max. Essar currently holds 26.4 per cent stake in Hutchison Max Telecom. Reports indicate that since the consolidation between Hutch and Essar has just taken place, this move might be unpopular as the Essar Group's operations may be seen as competition. Essar, on its part, has clarified that it is only applying for licences in areas where Hutch is not interested in operating.