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India to follow $2,000 car with $20 laptopBy James Lamont in New DelhiPublished: February 1 2009 19:32 | Last updated: February 1 2009 19:32

India is planning to produce a laptop computer for the knockdown price of about $20 (€16, £14), having come up with the Tata Nano, the world’s cheapest car at about $2,000.

The project, backed by New Delhi, would considerably undercut the so-called “$100 laptop”, otherwise known as the Children’s Machine or XO, that was designed by the Massachusetts Institute of Technology of the US.

The Children’s Machine, which received a cool reception in India, is the centrepiece of the One Laptop Per Child charity initiative launched by Nicholas Negroponte, the computer scientist and former director of MIT’s Media Lab. Intel launched a similar product, called Classmate, in response.

India’s $20 laptop would also undercut the EeePC, made by Taiwan’s Asustek. The EeePC was the first ultra-cheap, scaled-down laptop (a new category known as a netbook) launched worldwide through commercial channels. It does not have a hard drive and sells for $200-$400.

India’s “Sakshat” laptop is intended to boost distance learning to help India fulfil its overwhelming educational needs. It forms part of a broader plan to improve e-learning at more than 18,000 colleges and 400 universities. However, some analysts are sceptical that a $20 laptop would be commercially sustainable and the project has yet to attract a commercial partner.

A prototype will go on show at a National Mission on Education launch in Tirupati, Andhra Pradesh, tomorrow. Pioneered in India by scientists at the Vellore Institute of Technology, the Indian Institute of Science in Bangalore, the Indian Institute of Technology in Madras and at the state-controlled Semiconductor Complex, the laptop has 2Gb Ram capacity and wireless connectivity.