The Indian government, in cooperation with two research institutions in India, has been developing it's own ULPC with an initial price target of $10 US. The laptop is slated for use by higher education students accessing online coursework and curricula, also under development, such that students in rural areas would have access to high-quality educational opportunities.
Unfortunately, the groups involved now expect the price to be closer to $100, according to a posting on ITWorld. While most of us will applaud the effort, this story sounds just a little too OLPC-esque for my taste (and we're seeing how OLPC's efforts are tanking).
Research on the low-cost laptop is being already carried out at the Indian Institute of Science, Bangalore and the Indian Institute of Technology (IIT), Madras. The government did not however provide information on the specifications of the laptop, or whether the price would include a subsidy from the government.
Updated documents released today show the laptop selling for a price far less attainable by struggling students and families in impoverished areas of India. Government subsidies may help, however, and I'm inclined to believe that this is one area where having the government kick in some money could be of real benefit to student trying to afford higher education costs.