The Noida-based firm, set up five months ago by Amity University graduate Mohit Kumar Goel, launched the Freedom 251 at a high-profile function last night, attended by BJP veteran Murli Manohar Joshi.

Defence Minister Manohar Parikkar, who the company had said would launch the phone, could not make it due to 'cabinet meeting', the event's organisers said.

Ringing Bells' President Ashok Chaddha said manufacturing cost of the phone is about Rs 2,500, which will be recovered through a series of measures like economies of scale, innovative marketing, reduction in duties and creating an e-commerce marketplace. Chaddha also rejected speculations of the handset being subsidised by the government.

The industry has also raised concerns about the pricing of the device and has asked Telecom Minister Ravi Shankar Prasad to get into depth of the issue, saying the price could not be below Rs 3,500 even after a subsidised sale.

The 3G handset, Freedom 251, features a 4-inch display,Spectrum 1.3-GHz quad-core  processor and 1 GB RAM. It will come with apps linked to government initiatives like Swachh Bharat, Women Safety, Fisherman, Farmer and Medical.

Read more: Mobile industry raises concerns on 'Rs 251 smartphone'