You could get the flash, ram, processor, and most of the peripheral ports integrated into a microcontroller package at well under $3 for the right volume, parti

You could get the flash, ram, processor, and most of the peripheral ports integrated into a microcontroller package at well under $3 for the right volume, particularly if they were not component packaged but chips epoxied onto the motherboard. The motherboard and keyboard would probably be the same component (think pocket calculator membrane keys), and if there was a trackpad it might work similarly (otherwise use arrow keys for free). In this context, government would give Rs 2.5 lakh per institution for 10 Kbps connection and subsidise 25% of costs for private and state government colleges. 10kbps is obviously a tiny amount of bandwidth, especially per institution. This is clearly not enough for doing interactive browsing in a class. For this reason I suspect that the 2GB is actually flash, not DRAM. You couldn't keep a room full of 64k DRAM computers busy with 20-30% of a dialup modem.