Microsoft plans to start testing a new education PC called IQ PC and an education channel on its MSN portal in India next month.

The India launch of the IQ PC and education channel will be the first worldwide. It is part of Microsoft's ‘Unlimited Potential’ programme, which aims to use technology to increase the reach of education, said a spokeswoman for Microsoft India. Microsoft Chairman Bill Gates announced the Unlimited Potential programme in April.

The new education PC, which is a combination of online and offline content, is likely to be priced at about Indian Rupees 21,000 (£260). It runs on an AMD processor, and comes bundled with software from both Microsoft and local partners offering educational software.