$35 tablet PC to go for a field trial?

For $35 or Rs. 1500 you don’t get very many mobile phones to buy. Yet government of India is trying to mass produce a tablet PC for a cheap Rs. 1500. Everyone thought it was a joke. Some think it still is. Skeptics have kept their fingers crossed. Looks like HRD India is serious this time. The only problem is, someone has to build it for them. HRD has issued a tender for 100,000 pieces to be field tested at IIT Rajasthan. If successful, 1 million tablets could be ordered.
IIT Rajasthan was allotted with two projects to purchase 100,000 low-cost cum computing devices and carry out extensive connectivity and usability tests across the country.

The tablet is not manufactured by the HRD or any government organization. An expression of interest is being sought from various manufacturers. If any manufacturer can produce a tablet for $35 then they could have solved a potential problem which is tantamount to world hunger. If this sees the day of light, which I highly doubt for the price they promised, then all the existing manufacturers who are selling Hi-Fi tablets will be out of business. As someone pointed out elsewhere, if anyone can produce a $35 tablet then it is China and not India.
Shortlisted bidders should send in100,000 pieces by Jan 2011. That’s 3 months from now. Who can produce 100,000 devices in 3 months? My guess is, multiple vendors will be selected to split the task of providing 100,000 pieces. These devices are not for retail consumption. These are targeted at educational institutes and if you are dreaming about getting a tablet for Rs. 1500 then you should kill that dream right away. Instead you should be looking for other non-subsidized tablets.
If we look at the specs on this device, the going commercial rate is anywhere between $130 to $700. Getting that price to $35 looks like an improbable task, unless government provides some kind of subsidies to local players. But local players don’t have this capability and the tablet has to be manufactured in China or Taiwan.

As per Mr. Sibal, 1 million devices have to be produced/brought to keep the cost at $35.

Of all the things I have heard about this device, this is the only statement which made sense. 1 million devices are to be bought to keep the cost of the tablet at $35. Of the 1500 rupee price tag set by HRD, half of it or 750 rupees is borne by the government. My guess is government would end up subsidizing more than that. And we will never be able to know the real cost.