India has launched a new version of what is dubbed the world's cheapest computer -- on sale to students at the subsidized price of $20 -- with a quicker processor and an improved battery.

The Aakash tablet has been developed as a public-private partnership aimed at making computing technology available to students in a country where only one in ten uses the Internet.

Makers of the tablet, Britain-based Datawind, say the Aakash 2 is powered by a processor that runs three times faster than the original. It also has a bigger touch screen and a battery with a life of three hours.

Company CEO Suneet Singh Tuli said glitches in the first version have been removed in the latest model, which runs on Google's Android operating system.

"This time we have done our homework and all the problems which were found in Aakash-1 have been dealt with," Tuli told AFP.

"We are much more confident about Aakash 2 because the hardware is different and the applications are also new... a change in the (design) team has made all the difference," the Datawind chief executive said.

The first version of the Aakash was launched by the government in October last year but it was marred by problems including a short battery life, initial long waiting lists and difficulties with distribution.