The wait for the proverbial world's cheapest tablet is likely to get even longer. State colleges are yet to get the Aakash  tablet even a year after the tender was floated, due to disputes on specifications, payments and quality of tablets between IIT-Rajasthan and its vendor, Datawind.

In the melee`, the letter of credit (LoC) for Aakash issued by IIT-Rajasthan to Datawind in its extension, expired on Saturday, even as both parties have not been able to reach a conclusion on the tablet features. As per government sources, the LoC to Datawind "may" be given a third and final extension till March. But till Monday the LoC remained expired, as per a Datawind spokeswoman, putting a question mark on any further supply of Aakash tablets.

IIT-Rajasthan has rejected 3,000 units of Aakash on slow performance and bad screen panels. Moreover, it is yet to accept 'in writing' the 10,000 tablets supplied to it, as the acceptance would mean release of payment.

In letters written to the ministry of HRD, IIT-Rajasthan has cited slow processor speed, screen quality and battery power of the Datawind units. A top official of IIT-Rajasthan told ET: "Yes, we have written letters to the ministry on it."

On the other hand, Datawind has refused further supply unless it gets clarity on the specs required. "We have taken a straight loss of about 3,000 units. Besides, payments for the supplied 10,000 units are still due. We can't supply further unless we get revised test criterion," said Datawind CEO Suneet Singh Tuli.

IIT-Rajasthan wants shockproof and rainproof specs for Aakash, which Datawind says is 'not possible' in the $35 price point. Meanwhile, HRD ministry cites the dispute as purely commercial in nature between both parties. "Both IIT-Rajasthan and Datawind entered into a contract as commercial parties, let them sort it out," a ministry official said.

The ministry is preparing a new tender to invite more vendors to produce an improved 'Aakash 2'. A meeting was called last week to thrash out the specifications which include a capacitive touch and a 1 Ghz processor. Meanwhile, a government source said Datawind may be asked to provide a few pieces and not the complete 90,000 it was contracted for by IIT, since an improved Aakash 2 is already on its way in 2012.