In his book The Moon Is a Harsh Mistress, American science-fiction writer Robert A Heinlein popularized the thought that there is no such thing as a free lunch. But in politics, especially in India, complimentary feasts have been standard. Electricity, cooking gas, and now, smartphones are provided to different sections of voters at no cost. But the Govt often make promises that are difficult to fulfil. And it’s not just the voters that are left in the lurch; even big conglomerates involved in the schemes may lose out on potential benefits. For instance, in its last budget session, the Rajasthan government promised free mobile phones—voice calling and 20GB monthly data and all—to more than 13 million women across the state. While such populist schemes are usually announced with elections in mind (the state goes into polls later this year), the project’s fate is still hanging in the balance. The government “didn’t make provision to the tune of Rs 12,000 crore (~$1.5 billion) for this project”, says a top industry executive. Meanwhile, Reliance Jio—the telecom arm of billionaire Mukesh Ambani-owned Reliance Industries—is likely to bear the brunt of the ambiguity. We dive deep into why a state government is thinking and rethinking a chief minister’s pet project and why executives at India’s biggest telco are keeping their fingers crossed. Jio had emerged as the lowest bidder for the project and pocketed 60% of the overall contract value. And there is a reason it expects the contract to be a shot in the arm. In Rajasthan, its revenue market share and customer retention are dwindling. Besides, the company’s recent filings show a drop in revenue growth across India. Is the government rethinking the terms of the deal? Is it planning to shelve it altogether? What does it expect to get from the project (the ruling party lost in 2018 despite a similar scheme)? And what’s in it for the telcos and smartphone manufacturers (Airtel and Samsung are also in the fray)?
