Human Resource Development Minister, Kapil Sibal said, "If more companies decide to manufacture a similar device, prices will come down automatically."
The device, no bigger than a conventional laptop, is a single unit system with a touch screen and a built in key board along with a 2 GB RAM memory, wi-fi connectivity, USB port and powered by a 2-watt system to suit poor power supply areas.
"When we started the project, the response from the private sector was lukewarm. Now many are willing to join the innovation," Sibal said.
"We will give some subsidy on the device. As far as transport is concerned, if the transport cost in less, the government can bear that as well," Sibal added.
The ministry also invited private players to produce similar low cost computers. The low cost laptops will be distributed in institutions by the HRD ministry
According to the sources, the ministry has started its efforts by holding discussions on this concept with a group of experts at the Indian Institute of Science, Bangalore, IIT Kanpur, IIT Kharagpur, IIT Madras and IIT Bombay.