Government distances Make in India from Freedom 251

NEW DELHI: The government has clarified that its Make in India initiative does not back or support Freedom 251, the world's cheapest smartphone launched on February 18, in any way.

"This is not a government project. Make in India team has nothing to do with this," Amitabh Kant, secretary of department of industrial policy and promotion, said on social media platform Twitter, clarifying the government's non-involvement or backing for the controversial offer by Noida-based Ringing Bells, which launched the smartphone at what the industry called as impossible prices.

The clarification comes even as the government keeps a close watch on the company and its operations. Communications and IT minister Ravi Shankar Prasad has warned that action would be taken if the company fails to deliver phones to those who had paid to book online.

Ringing Bells management started bookings of the Rs 251 smartphone from February 18, and has taken 30,000 paid bookings so far, deliveries of which are scheduled to begin by April. However, the rock-bottom pricing lead to people questioning the model of the company and whether there was any government subsidy involved.

The communications ministry has formed a panel to look into the working of the company after complaints from BJP lawmaker Kirit Somiya and the Indian Cellular Association, said that the phone offered by the company would cost atleast Rs 3,500 after all subsidies. The government opines that the cost can be as low as Rs 2,300.

The company still claims that it makes a profit of Rs 31 on every smartphone sold at Rs 251, again raising doubts on its model.

With the Make in India team clarifying it's position, the onus now rests on the company to deliver the booked handsets.