Free cellphone scheme unlikely to take off

Prime Minister Manmohan Singh is unlikely to announce the proposal to give free cell phones and 200 minutes of free local talk time to all below poverty line families in his Independence Day speech; and, in fact, the scheme may not see the light of day at all, according to a CNN-IBN report which cited sources in the Prime Minister's Office.

There were widespread reports this morning that the scheme, dubbed 'har haath mein phone' (a phone in every hand) is on the anvil, and would be announced as soon as Independence Day on 15 August.

This would imply six million households and an estimated cost Rs7,000 crore. The scheme was expected to boost the sagging election prospects of the Congress-led United Progressive Alliance. However, the proposal has apparently been nixed, according to the CNN-IBN report.