Priyadarshi Siddhanta
Posted: Wed Feb 09 2011, 05:17 hrs, New Delhi:
The ambitious Unique Identification (UID) project, being steered by Nandan Nilekani, may have to settle for less than half funding, as against what it has sought from the government for the Budget 2011-12.
Though the finance ministry will take the final call on fund allocation for the project, sources in the authority said that the government was committed to the project and there would be no hurdles in the way.
According to sources, the Planning Commission has favoured allocating the UID Authority Rs 1,400 crore against its demand for Rs 3,500 crore. The department had sought Rs 3,500 crore for setting up a IT Data Repository as a single platform for the project and needed to set up necessary infrastructure for the same. It is understood that UIDAI had to face the axe, as a chunk of the funding were being earmarked for social sector flagship programmes.
Posted: Wed Feb 09 2011, 05:17 hrs, New Delhi:
The ambitious Unique Identification (UID) project, being steered by Nandan Nilekani, may have to settle for less than half funding, as against what it has sought from the government for the Budget 2011-12.
Though the finance ministry will take the final call on fund allocation for the project, sources in the authority said that the government was committed to the project and there would be no hurdles in the way.
According to sources, the Planning Commission has favoured allocating the UID Authority Rs 1,400 crore against its demand for Rs 3,500 crore. The department had sought Rs 3,500 crore for setting up a IT Data Repository as a single platform for the project and needed to set up necessary infrastructure for the same. It is understood that UIDAI had to face the axe, as a chunk of the funding were being earmarked for social sector flagship programmes.
During the next five years, the cost of Aadhaar — the brand name of the unique identification number — would be around Rs 35,000-40,000 crore, which is to be borne by the exchequer. The other reason for lowering allocation to the Aadhaar project could also be the possibility of the home ministry shouldering the majority part of it for the National Population Registry, sources said.
An amount of Rs 1,900 crore was given in 2010-11 to UIDAI, which envisages rolling out 600 million numbers by 2014. Sources said that as a first step, the government would disburse grants to states as an incentive to issue UIDs to people below the poverty line.
The total grant to states, calculated at the rate of Rs 100 per person registered for UID, is estimated to be Rs 2,989 crore during 2010-15. The states can leverage these funds either to directly subsidise residents or to provide better facilities for enrollment to lower their cost of participation.
The demand-driven programme is expected to consumer substantial resources for its fructification.
Sources said that the finance ministry may also be guided by the consideration of allocating more funds to the ambitious exercise as its timely implementation could result in saving of crores of rupees for the exchequer by containing pilferages and leakages occurring while executing the social sector schemes.
From opening bank accounts to availing the municipal benefits, the Aadhar numbers are likely to be the answer to distribute equitable social benefits to the intended beneficiaries.
The demand-driven programme is expected to consumer substantial resources for its fructification.
Sources said that the finance ministry may also be guided by the consideration of allocating more funds to the ambitious exercise as its timely implementation could result in saving of crores of rupees for the exchequer by containing pilferages and leakages occurring while executing the social sector schemes.
From opening bank accounts to availing the municipal benefits, the Aadhar numbers are likely to be the answer to distribute equitable social benefits to the intended beneficiaries.