Quoting "Raghunand Arcot (CAPL)" 

> I have to generate documents in either PDF format or Word format. 
> Which is the cheapest/efficient tool that can do this job?

If you use iText, you can generate PDF as well as RTF (which isn't
the same as WORD format, but close enough), using the same Source
Code. So the TCO (Total Cost of Ownership) will be reduced: you
only have to develop and maintain 1 application/tool.
 
> Is Lowagie a freeware?

It's Free / Open Source Software.

> Do I need to pay any licensing fee for usage in
> client's location?

You don't have to pay any fee to use iText.
But please read the license and the FAQ:
http://www.lowagie.com/iText/MPL-1.1.txt
http://www.lowagie.com/iText/faq.html#free

kind regards,
Bruno Lowagie

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