All future smartphones from Microsoft will be under the Microsoft brand, which means Nokia brand will now be phased out.
Microsoft had acquired Nokia's phone business for $7.2 billion two years ago under its then CEO, Steve Ballmer.
The phone has the ability to store up to 6,000 songs on a 32 GB memory card.
The smartphone is priced at Rs 9,199.
It's planning to offer unique apps such as Office 365, One Drive and X-Box Games.
These will be priced at Rs 5,999 and Rs 6,499 respectively
Nokia Technologies will receive royalty payments from HMD for sales of Nokia-branded mobile products, covering both the brand and the intellectual property rights.
In February this year, Nokia had announced the 'Nokia X' family of affordable smartphones, running Google's Android apps, at the Mobile World Congress in Barcelona.
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The Chennai plant may be excluded from software giant Microsoft's acquisition of Nokia's handset business for 5.4 billion euros due to tax issues.
The device is being labelled as the phone for 'selfies and skype'.
Budget smartphones will rule the market in 2015.
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