Under the 'Bharat Mobile Scheme', one mobile may be provided per household, preferably to a woman, officials said adding the handsets will come with a three-year warranty.
The mobile device for The Mahatma Gandhi National Rural Employment Guarantee Act workers will be non-transferable as it will also be customised for transfer of benefits of different government programmes like direct cash transfers scheme.
Government official added that the programme is under discussion and details of the schemes are yet to be finalised.
"Distribution would be done by the service providers in coordination with district administration," the source said.
The mobile numbers in the device is expected to work as first level authentication to identify and inform the beneficiary of scheme, sources said.
Around 5 crore households have been provided work in year 2012-13.