The report stated though a deal could be reached in the next few weeks, there was no certainty about it.
Chinese tech giant Lenovo unveiled its new 'layered' smartphone - Vibe X2 - priced at Rs 19,999 in India.
Global mobile phone majors Nokia, Motorola, Sony Ericsson and others are offering a slew of products including touchscreen and music capable handsets in India to counter the might of Apple's iPhone, which is expected to hit the markets in September.
Delhi high court had last week stayed BSNL to award the contract till the next hearing, but had allowed the public sector company to continue with the evaluation process.
After the successful debut of its affordable Android One devices, tech giant Google is all set to launch its premium Nexus 6 smartphone and Nexus 9 tablet in India in next few weeks.
Handset maker Motorola has said its latest smartphone - Nexus 6 - priced Rs 43,999 onwards, can be pre-ordered in India on Flipkart from Tuesday.
he 4G version of the device would compete with the likes of Lenovo's A6000.
Budget smartphones will rule the market in 2015.