So, just to be clear, do they insist on an Indian address for all applicants, whether holding an Indian passport or not, and whether living in India or not?

One post further up in this thread seemed to imply that an Indian address is needed only for Indian passport holders living outside India (NRIs).

If an Indian address is needed for everyone, well, that basically cuts out a whole lot of folks who could potentially use this scheme. One can hope they relax this requirement in the future.