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Nilekani's UID Under Siege
Once a star programme of the govt, the UID has become everybody's favourite whipping boy
Sreelatha Menon / New Delhi Sep 30, 2011, 00:25 IST

Nandan NilekaniWhat a difference two years can make. In 2009, the Unique Identification Project spearheaded by the government’s then golden boy, Nandan Nilekani, was a much publicised and pampered one. Today, it has become everybody’s favourite whipping boy.

The project chief aim was simple: to disseminate unique identification numbers to every resident of the country, chiefly benefiting those with no identity such as the poor and migrants who find it difficult to get access basic entitlements like a ration card, a phone connection or a bank account.

The Cabinet Committee on UIDAI, after allowing the authority to collect data for 10 crore people in 2010, never took up the matter again, while the Finance Ministry decided later to increase this number to 20 crore. Things came to a head when the UIDAI came up with a proposal before the Finance Ministry last month seeking around Rs 14,841 crore for collecting data and issuing numbers to the entire population.

The Home Ministry was the first to cast a stone at the UIDAI proposal saying that it did not find the data collected by it reliable and that it would have to collect its own data for the National Population Register (NPR), which was to provide identity cards to people in coastal areas for security purposes. This meant duplication of work, and cost.

What is embarrassing for the UIDAI, is that the data it has so far collected for 8.5 crore people stands the possibility of being rejected by the NPR whose officials say that they may collect data for these people all over again. “We can collect the data for the whole country by 2014 and at half the cost,” says a top official of the NPR. And we collect the data from a person in his residence, and hence ours is reliable while the collection points for UIDAI are ad hoc, and through introducers. We cannot use this at all,'' says the official.

UIDAI director general R S Sharma says that if data on 20 crore people collected till March 2012 is rejected it would be a loss of Rs 1,000 crore. Sharma is at a loss to explain why the NPR can’t trust UID’s data since it is after all one of the registrars partnering with UIDAI in data collection. The other registrars collecting data are state governments, the same ones who help the Census,'' says Sharma.

Meanwhile the Home Ministry has called a conference of Chief Secretaries this week to emphasise the importance of collecting data through the NPR, which now seems to be competing with the other registrars appointed by UIDAI. UIDAI pays Rs 50 per person for collection of data to the state, while the Census pays nothing and consequently the states have been giving more attention to the UIDAI work than to the NPR much to the annoyance of the latter.

The Home Ministry also has knives out for UIDAI due to what it feels are unnecessary expenses especially with respect to iris scanning. The Ministry points out that the Cabinet had given only an ‘in principle’ approval to iris scanning and that it has a ‘huge cost implication’. The total cost on NPR and National Identity cards (a new project of the Home Ministry ) would be Rs 13,438 crore. The cost of UIDAI -Aadhar is projected at Rs 17,864 crore. Thus an investment of Rs 31,302 crore would have to be made if NPR and UIDAI are implemented in parallel.” it says. It further says that the convergence of UIDAI and NPR and exclusion of iris ...would reduce the cost by over Rs 15,000 crore.”

Sharma disagrees: “The iris scanner costs just Rs 23,000 while it used to cost a lakh rupees earlier. A single scan costs Rs 4.40 and for the whole country it would cost just Rs 500 crore. This is nothing compared to the Rs 6000 crore the Planning Commission is talking of”, he says. Sharma also argues that having multiple modes of identification is always better than a single one and prevents faking of identities.

The third accusation is levied by the Planning Commission, its parent body, which states that the expenses of the UIDAI are not routed through it and hence needs a separate financial advisor;preferably its own;to monitor UIDA,. says Sharma. The Commission by imposing its financial advisor on the UIDAI would be reversing its own notification which had earlier allowed the UIDAI financial advisor to send proposals directly to the Finance Secretary like all ministries do.” The last nail in the coffin seems to be the seemingly absurd declaration by the Reserve Bank of India this week that having a UID would not be enough to open a bank account and that an address proof would still be needed.

Of course, all of this could have been easily avoided if the government passed legislation making UIDAI a statutory authority, which would have laid out its mandate in clear terms, vis a vis the role of all other institutions and ministries. Its absence has bred rampant confusion and speculation.

Nilekani addressed the media on Thursday and said that the plan had the backing of the government. “The Planning Commission Deputy Chairman Montek Singh Ahluwalia will clear the air once he returns from abroad but the UIDAI is on schedule to meeting its goals,” he added.

Lets hope that for the sake of millions of Indians who have trouble proving their existence that he is right.

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Sorry, comments to this story are closed
Latest Messages
Posted by: Tony
I agree with Manish totally regardless of the small flaws like inadequate number of forms etc it still better implemented than most government schemes what the NPR and govt officials are unhappy about is that they haven't been given a chance to make any money of it . Even though I am not sure about the need for a UIDAI card last thing what we need is another botch up by government officials.
Posted by: Dr. Gurdeep
This scheme is flawed in many ways... First it's difficult to get the Forms for the scheme, Then one has to stand in a queue , which i dont think many urban people have time and patience, And if One has Ration, Card, Voter's card & Passport, what different Data this Expensive scheme would Provide?? Its a Failed Scheme..and may i dare to say that this is just a 'Favour' given to Infosys (costing 14000 Cr. of Tax-payer's Money) by the government.
Posted by: manish
Guys it looks like a plan by home ministry, NPR and co. If UIDAI succeeds, How govt officials can make money via the famous bribe route? So they will do anything and everything in their power to fail UIDAI. The free cash flow to them (for example fake subsidy cases) is far more important than your and mine tax money. Why not our PM comes out and shuns all these "other" people and shows confidence in UIDAI? Since UIDAI is needed at any cost to stop bribe and corruption in many departments.
Posted by: hailnlight
To authorities at RBI, NPR ,HOME Ministry --if you are against the information collected by UIDAIas the info is too costly, too unreliable to be used for confirmation of identification, why didn't you people raised the questions about its reliability before the idea was implemented. on one hand, government talks about rising fiscal deficits, on the other your ideas are all about wasting more money, further you waste tax paying Public's time, energy and other valuable resources which no authority is capable of valuing. show some respect for your work and perform your duties at right time so the nation as a whole can build.
Posted by: Vijay
Everyone wants to make Money, with parallel projects running and the politicos pockets gets filled with money from these projects. Unnecessarily wasting people's money by creation of bogus projects is another big setback for the nation. No wonder we have flyover that start from one end of the road and end at the other end.
Posted by: anil bharali
Why home ministry is so much against UIDAI?? Even after 65 yrs of indipendence nation donot have any record of its people particularly the poors the .Dirty conspiracy ofthis section of home department elements should be exposed properly for their ill motives as well as inefficiency.
Posted by: Sharatkumar
The Four points maid here is 1. The Home Ministry came up saying "Data collected is not reliable" and National Population Register (NPR) will also collect its own data, that is in parallel to UID. 2. Rs 31,302 crores are hanging. No one knows where they are upto. 3. UID does not come under planning commission. 4. Reserve bank doesnot agree with just UID to open an account. Needs address proof too. Question is "Why waste my money collected through TAXES"
Posted by: Vijay
What NPR is saying is why UIDAI wants to spend money on thousands of people when We, the few hundreds at NPR are enough to eat it all up! NPR knows it will be out of scope once UID is in place and it will loose crores spent every decade during census.
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