The Times of India are reporting that the primary contractor for the super cheap tablet has been let go. According to sources close to the project, HCL Infosystems had been selected as a vendor for the $35 tablet and had been dropped after insisting on several new conditions. It's also been reported that the vendor did not agree to furnish a Rs 60 crore ($13m USD) bank guarantee, which is required under the Indian gov't. regulations.
It also turns out that the estimated parts cost for the tablet was a little optimistic. The new cost estimate is Rs. 5700 ($124 USD), and that's jsut shipping or import duties.
But the tablet is supposedly still on schedule and is due out in the middle of this year. Yeah. I'll believe it when I see it.