<p>I am given a responsibility in my project to develop a Equipment tracking tool with following requirements</p>

<ol>
<li>New Equipment can be added by admin to a particular user</li>
<li>Once equipment is assigned to a person he will a request to accept the request so he will be responsible</li>
<li>User can transfer his equipment to other users.</li>
<li>At the same time Admin should be sent a mail or message whenever there is a change in status.</li>
<li>It should be deployed locally on a PC( So it is not actually a web app) that is connected to network which can be accessed by everyone</li>
</ol>

<p>I thought I can use Django for this( I am new to it ), but I do not know much about deployment on a local PC , How can I do this, or is there any better Idea for this?</p>

It still sounds like you want a web app, you just won't be deploying it on a traditional web server.  One thing to note, client versions of Windows (XP, Vista) will limit you to 10 incoming connections per computer.
You'll want to follow these
instructions on how to install Django
.  If you haven't installed python yet, I'll recommend that you
install version 2.5
, since that will include sqlite, an embedded database that makes it
very easy
to get started developing with Django.  Django includes its own development web server, which you will come across naturally as you
go through the tutorial
.
Start by installing and then jump right into the tutorial.  Your deployment options will be much easier to understand once you're comfortable with developing in Django.