New Delhi to give 6 million mobile phones to the poor ahead of election

Bicycles, rice, saris, alcohol, blenders and televisions are some of the freebies that Indian politicians have given to voters at election time. Now it is mobile phones.

The government plans to distribute more than 6 million mobile phones for free to families below the poverty line, along with 200 minutes of free call time.

Costing some 70 billion rupees (HK$9.7 billion), the objective behind the 'A Mobile in Every Hand' scheme is to boost mobile phone connections in rural areas.

"We need more connections in remote areas so that we can make sure government services such as banking and other information about welfare benefits can reach the poor," said an official of the Planning Commission, where the idea was conceived.

Of the 950 million mobile phone subscribers in India, only some 35 per cent are in rural areas.

Very few of India's state-owned banks have branches in rural areas because opening and running a branch is not cost-effective, given that only small transactions are likely to be carried out.

This leaves millions of Indians without a bank account and unable to accept or transfer money.