In a Friday meeting with Prime Minister Manmohan Singh, the Nokia Corp President and CEO Olli-Pekka Kallasvuo conversed about the mobile industry-related policies of the Indian government, as well as the steps Nokia is taking to ensure affordable connectivity in the country.

Kallasvuo made a special mention of Nokia's schemes, like micro finance and introduction of Nokia Life Tools (NLT), the rural masses, whereby the company will sell handsets on Rs 100 weekly installments, spread over 25 weeks. Noting that pilot projects in Karnataka and Andhra Pradesh have been successful, Kallasvuo said that the scheme will be extended to 12 more states.

Saying that Nokia could play an important role in improving telecom mobile access in India, Kallasvuo discussed the need for re-energizing the telecom industry, and specifically sought a countrywide 'uniform tax' on mobile handsets.

The Finnish handset maker has been opposing the higher value-added tax (VAT) levied by some Indian states, like Maharashtra and Madhya Pradesh, which charge a 'fluctuating' 12.5 percent VAT, as against the 4 percent VAT elsewhere in the country.

Kallasvuo said that a non-uniform tax encourages the 'grey' market, thereby affecting the revenues of a higher-VAT state, with customers likely to purchase the same phone more cheaply from other states.

During his three-day visit to the country, Kallasvuo also met chief government officials and mobile industry players.