Intel has demonstrated prototypes of a range of low-cost 'nettops' in India that could be available in the country for as little as $114 (£60).

The devices, which run on Intel's new Atom processor, will be priced low, but they will not have a display, a spokeswoman for the company said today. The plan is that users will be able to use their television sets or other displays in the home with the device, she added.

The demonstration of the new devices in Delhi was part of the launch of a joint industry and government initiative, called 'Connected Indians"', which aims to increase internet connectivity in India, so that it reaches a billion Indians.

Intel gave the initiative a "kickstart" by bringing industry, government, and other organisations together on this, but Intel does not run the programme, the spokeswoman said.

The Indian government aims to have 500 million Indians connected to the internet, with more than 100 million broadband connections, and 100 million broadband enabled devices in the field by 2012. The country has a population of over 1.13 billion people.

Internet penetration in India is currently very low. India had 4.6 million broadband subscribers at the end of July, according to the Telecom Regulatory Authority of India.