The government of India has signed an agreement with the One Laptop Per Child (OLPC) project and will purchase 250,000 of the organization's XO laptops. The machines will be distributed to students throughout the country. India's decision to embrace OLPC is a bit unexpected in light of the country's past antagonism towards the project.

OLPC is a nonprofit organization that builds low-cost education laptops to sell in bulk to governments of developing countries. The project, first unveiled in 2005, has faced many challenges and has been forced to significantly cut staff and reduce the scope of its vision. Despite these setbacks, the program is still marching on and continuing to sell units as it works on an updated model and an innovative next-generation version.

OLPC launched a pilot program in India in 2007 with 20 XO laptops at a school in Khairat-Dhangarwada village in the state of Maharashtra. Although the pilot program was successful, the country's Ministry of Human Resource Development (MHRD) was highly skeptical about OLPC, and expressed concerns about the health implications of prolonged laptop use among students.

The MHRD later reversed its views about the health implications of youth computing and launched its own dubious program to build a competing $10 laptop. Unsurprisingly, the $10 laptop never materialized. When the country finally unveiled its highly ambiguous plans for its $10 "Sakshat" computing initiative earlier this year, it was revealed that the device would not be a laptop and would cost significantly more than $10 to produce.

India has finally decided to adopt OLPC after all, despite the government's previous skepticism and plans for building its own technology. PC World, which spoke with OLPC India CEO Satish Jha, reports that the laptops will be sent to 1,500 schools. Jha hopes to ship 3 million laptops in India this year. PC World also says that a small roll-out will be taking place in Sierra Leone, where a human rights group is paying to deploy 5,000 XO units.

OLPC recently announced a hardware bump and plans to drop AMD chips in favor of the VIA C7-M. The update will also boost system memory to 1GB and internal storage to 4GB. Prototype boards are expected to emerge in May. It's unclear if the order placed by India is for the current hardware or for the updated version. OLPC is also working on a more ambitious 2.0 model which is expected to land in 2010.

In total sales and deployed units, OLPC still lags behind Intel's competing Classmate PC initiative. India's purchase of 250,000 XO units will help OLPC recover some lost credibility. It demonstrates that major buyers still believe that the program is viable and that the laptops deliver reasonable value.