Good news. I have stumbled upon a fantastic find that pertains to BSNL 3G sim using a Dell Wireless 5520 Mobile Broadband which i purchased on Ebay for USD $30. Search google for "Dell Wireless 5520" and you can see it.
NO Wires NO Dongles NO Tethering
I have a Dell XPS laptop which has an extra pci mini express card slot and a SIM card slot behind the battery. I stubmled upon the card on E-bay and had it shipped to me from Hong Kong. It took 8 days to arrive.
With some tweaks and trials of various Dell Broadband software, I got it to work.
Now I just open my laptop and connect using the Dell Broadband Wireless Card Utility to connect.
I believe that you can find different pci express cards for different laptops brands including Lenovo, Toshiba, Sony, Acer etc using acessories search on different manufacturers websites. Then you have to look for the Global Easy Buy option on EBAY. I cant guarantee it cause i havent seen personally.
Laptop: DELL XPS M1330 Laptop w/ 4GB Memory
O/s: Windows 7 SP2 (also used on Vista before upgrading)
Wirelss Modem: Dell Wireless 5520 Internal Mini PCI.
Cost of Modem: USD$30 (INR 1600 Aprox).
Connection Software Dell Broadband Wireless Card Utility for Vodafone.
Data Plan: BSNL 3G data plan.
Time: 3 days of frustrating troubleshooting!
Result: Hapiness and freedom from extra wires and ugly USB dongles that tend to break when laptop is on your lap.
Screen shots to follow when i figure out how to upload.
Disclaimer: This solution works for me. i cant take responsibility for others. I took a risk despite Dell and BSNL telling me it wouldnt work. Trials with DELL AT&T software didnt work but the Dell Vodafone software did. You can also set up using Microsoft DUN.