Wheelchair is a device used by handicapped and elderly people for their transportation purpose. Several types of smart wheelchairs are available in the market. In some case such as totally paralysis person in amyotrophic Lateral Sclerosis (ALS) and Parkinson disease, it may be very difficult or impossible for such patient to use normal type of system. They are based on hand gesture, eye position, voice recognition, brain waves etc. All these types of wheelchairs are very costly and are not affordable by common man. In this work a novel cost effective electric wheelchair controlled by DC motor is proposed. The sensing is made with the help of trackball. Trackball is a pointing device consisting of a ball held by a socket containing sensors to detect a rotation of the ball about two axis with an exposed protruding ball. The users have to rolls the ball to position required, using their thumb, fingers, or commonly the palm. It is of low cost and easy to implement. Dual closed loop control of speed regulation using PWM technique is used to maintain a constant speed. The voltage and armature control of DC motor is controlled for speed regulation. It increases the dynamic performance of the motor and is very precise and accurate. When the wheel chair reaches a three ended corner, the user will face difficulty to turning it. At that situation the chair alone is made to rotate 180 degrees for changing the direction, so the wheelchair can easily change the direction and the user can view the obstacles. Ultrasonic sensors are used here for collision avoidance. So the wheelchair gets diverted when there is an obstacle. DC motors are used here for both wheel movements as well as to rotate the chair. The estimated cost of the proposed system is very much low when compared to the conventional system (The conventional system costs around 1 lakh Rs and the proposed system costs around 40000 Rs). So every class of people can afford it with ease. The proposed system is user friendly since the direction can be choose with the help of trackball. It is easy to control. The activation and stopping of the wheelchair can be done using a push button. So it can be placed anywhere even in the presence of children.