The scheme was launched by former chief minister Laxmikant Parsekar last year in December, under which nearly 32,000 people availed the benefit so far.
Under GYSY, users, comprising youth aged between 16 and 30, were given 100 minutes calling and 3GB internet data per month free of cost. It was supposed to be operative till December 2019.
"The state government has decided to discontinue the scheme. It would have incurred an annual loss to the tune of Rs 24 crore to the government. We were also receiving complaints from several parents that it was being misused by the students," state information and technology minister Rohan Khaunte told PTI.
"We will soon come out with a new scheme with digital literacy as priority in rural parts of the state," the minister said.
Users of the scheme were informed yesterday by the government via message that the scheme will be discontinued from July 1 onwards.