See if the BSNL offered MotoFone is available in your area. The phone costs about 1.6K and the offer gives some Rs 150 per month free for the next 3 years.. not too sure about the details but some information can be found over here.
GSM version of the black and white handset would be available with a bundled offer from BSNL for Rs 1,650. New user would also get free talk-time of Rs 150 every month for three years under the offer with BSNL.