The touch-screen device, called Aakash, or “sky” in Hindi, is currently assembled by a British company. A pilot run of 100,000 units will be given to students for free, with the first 500 handed out at the launch to a mixed response. Image by Parivartan Sharma, more details on Reuters.
Very little technical information is available beside the fact that it’s running on Android. And speaking of “cheapest”, India also wowed the world in 2008 with Tata Nano, the world’s cheapest car, which is doing pretty well domestically. What you pay is what you get; but there’s always demand for cheap (and relatively low quality) stuff.