Indian Cellular Association estimates the cost of Freedom 251 to be Rs 4,100..

The Telecom Ministry is also looking into the controversy sparked by Ringing Bells' sensational offer of a 3G smartphone priced at a mere Rs251.
A senior official confirmed that the Telecom Ministry has worked out the manufacturing cost of a smartphone with specifications being offered by Ringing Bells to be around Rs2,300.
The Indian Cellular Association (ICA), which represents the handset makers industry in India and includes Apple, Samsung, Microsoft, Lava and Micromax as members, had also written to Telecom Minister Ravi Shankar Prasad on the issue.
The ICA has stated that the bill of material value for a product like this when sourced from the cheapest supply chain cost approximately $40 (Rs2,700). The retail price of such a smartphone after the inclusion of applicable duties, taxes and distribution and retail margins would be at least Rs4,100, the cellular body said.
The ICA has requested the minister to get into the depth of the issue, saying the price could not be below Rs3,500 even after a subsidised sale.
Ringing Bells, on its part, said the manufacturing cost of the phone is about Rs2,500, which will be recovered through a series of measures like economies of scale, innovative marketing, reduction in duties and creating an e-commerce marketplace.
Analysts allege that the design of Ringing Bells' Freedom 251 handset resembles that of Adcom's Ikon 4, which is already available in the Indian market at Rs3,999.