ChampOne C1 is backed by ChampOne Communications, a domestic start-up.
However, the current price is for sales promotion only and once the device is launched nationwide, it will be available for nearly Rs 8,000, media reports said on Monday.
To purchase the phone, register for the flash sale with Cham1india which started on August 22.
After registration, customers get a chance to buy the smartphone for Rs 501 on the first flash sale scheduled for September 2 in cash on delivery mode.
The device features 5-inch IPS display and has 1.3GHz quad-core processor.
The smartphone sports 8MP rear camera and a 5MP front camera.