Getting a SIM card is equally arduous even for Indian citizens. You need to have an ID proof, address proof and of course a photo. If you are a married woman and have changed the middle/last name after marriage, you also need to give a marriage certificate copy! And you have to provide these docs at regular intervals.
Despite this, some unscrupulous people manage to get hundreds of SIM cards activated, some times for crime, some times just to vote on Reality TV shows on behalf of a contestant.
300 for a SIM is too much. Reliance charges INR 10 ($0.16) for SIM.