Bangalore, July 22 :    Bangalore, July 22:  A computer for Rs 4,500 - if that sounds outlandish, think again. The Indian Institute of Science (IIS) and Encore Software, a Bangalore-based software company which is developing a newer and cheaper version of its 'Simputer' a low cost PC, aim to bridge the digital divide by increasing the penetration of the information highway deep into the rural areas. Vinay Deshpande, chief executive officer of Encore and president of the Manufacturers Association of Information Technology (MAIT), told The Telegraph, 'The earlier product was designed to take IT to the masses. But we felt the need for an information-accessing device unique to the rural areas. We are working on a gadget that will be half the price of the Simputer.' IIS and Encore formed a Simputer Trust early this year to market the Simputer for Rs 9,000. Now Encore plans to set up a subsidiary with a initial corpus of $ 3-4 million that will not only market the Simputer but also undertake research and development to develop new products on the same platform at half the price. IIS has also set up a subsidiary named 'Picopeta' (meaning from the smallest to the largest) that is expected to work closely with the Encore arm to develop new internet-enabled products. 'We (Encore) will hold a majority stake in the subsidiary and the rest will be held by foreign institutional investors (FIIs). We are in advanced stage of negotiations with a few foreign institutional investors,' said Deshpande. The Simputer Trust has set a one-time manufacturing licence fee of $ 25,000 for Indian PC manufacturers and those from developing countries. For firms from developed countries, the fee for developing this product on a mass scale will be $ 250,000. The Trust has so far been approached by 12 companies, including four Indian computer hardware manufacturers, for the licence to develop this product. The Trust expects to sell about one million Simputers within a year and hopes to double the number each year from the commercial launch, which is scheduled this September.