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IIT-Rajasthan has lost out on the Aakash 2 deal, according to a report in The Economic Times.

According to the report, the government was disturbed after Datawind and IIT-Rajasthan bickered over a host of specifications. The government has now decided to assign the deal for Aakash 2 tablet and future tendering to PSUs.

With this move IIT-Rajasthan not only loses out on the deal but also loses out on the task of drafting of specifications and features to the Department of Information and Technology (DIT).

Datawind, the manufacturer of the tablets however might get an extended LC till March. But their future after March is still undecided.

The report also added that the government has almost decided about the PSUs which include ITI Ltd or Telecommunications Consultants India Ltd (TCIL) for the orders. A government official in a statement said that educational institutes are not capable of handling tenders as it involves large sums of money and handling vendors and added that public sector undertakings are much better equipped to handle it.