Company chief executive Vinay Deshpande said during the last two years Encore had sold only 4,000 computers.

"There are companies both in the government and private sector negotiating with us for future orders," Deshpande told reporters. "In the next 12 months at least 50,000 units will be sold in India and abroad."

The Simputer, a simple device designed to provide low-cost technology to buyers, is the first Indian-designed hand-held computer.

The idea was conceived by professors at the prestigious Indian Institute of Science, who started the Simputer Trust in 2001.

They gave the manufacturing licence to two firms, Encore and PicoPeta Simputers, which is being run by former professors of the institute.

Simputer's three versions cost between 9,950 rupees (216 dollars) and 19,950 rupees (443 dollars). Competitors' models cost upwards of 300 dollars.

To cut costs, the device works on the open source software Linux.

"Encore is also now selling to firms in the Middle East and the US. Exports are also slated to go up next year with 25 percent of the 50,000 units being sold outside the country," Deshpande said.

He said Encore hasn't targeted individual users so far as it did not have sufficient funds.

"It is not a retail product so far. The firm is not geared up to support individual users. Maybe within the next six to 12 months we will be ready," Deshpande said.

On Wednesday the company launched a free compact disc containing all the tools needed to develop applications around the Simputer.

"Linux users can develop any applications such as banking, healthcare, ticketing and courier services provided they use it for personal purposes. If they go commercial then they have to obtain a licence from the Simputer Trust," Deshpande said.

"The aim is to give the customer greater control over solutions and provide an international exposure to Indian technology," he said.

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