Tuesday, December 13, 2011

2084 - Nilekani Says ID Project on Track- Wall Street Journal

December 13, 2011, 10:02 AM IST

Dibyangshu Sarkar/Agence France-Presse/Getty Images
A villager looked at an Iris scanner during the data collecting process for UID in a village near Bangalore on April 22, 2010

Some 85 million unique identification numbers have been issued so far under the project headed by Nandan Nilekani, the information-technology supremo told a conference on microfinance in New Delhi Monday.

Mr. Nilekani, who has been leading an ambitious government initiative aimed at giving unique IDs to all Indian citizens, says his team is on track to meet its goal of delivering 200 million IDs by the end of March 2012. The government is yet to decide on the next steps.

But Mr. Nilekani’s team will have to step up the tempo: to meet its target on time, it will have to issue, on average, more than one million ID numbers per day–roughly twice what they averaged last summer.

The Indian government first embarked on the mammoth task of supplying each of its 1.2 billion citizens with a 12-digit unique identity number two years ago with the aim of improving access to welfare programs, reducing costs and preventing corruption. Mr. Nilekani, the former chief executive of outsourcing giant Infosys Ltd., was chosen as the man for the job.

Critics say the project – known as Aadhaar – is too costly and encroaches on citizens’ privacy. The government has already set aside $670 million for the first stage of the project and will need more to complete it. Last week, a parliamentary committee led by a member of the opposition Bharatiya Janata Party looked set to recommend, largely on these grounds, that lawmakers reject a bill that would give parliamentary backing to the project. Parliament’s approval of the bill, while not required at this stage, could enhance the project’s legitimacy.

Speaking on Monday, Mr. Nilekani defended his program from parliamentary opposition by saying it would “play a huge role in inclusion.” 

The ID numbers, which will be verifiable online as proof of identity, could help the country’s poor access government programs as well as services ranging from buying a SIM card to opening a bank account. He suggested microfinance institutions could use it to facilitate financial transactions such as delivering micro-loans and receiving payments.

Mr. Nilekani also brushed off criticism that the program, which involves building a biometric database by taking fingerprints and scanning irises, would lead to a “Big Brother” state. “This number is only used for authentication, in other words you can’t go to this database and ask for people’s name and address,” Mr. Nilekani said. He added that biometric data would not be readily available and that all the background information they require is name, address, sex and date of birth.

The ID project has also met some resistance from government quarters. The Finance Ministry recently turned down a request to expand Mr. Nilekani’s mandate ahead of schedule and the Home Ministry reportedly challenged the methodology used to collect data.

But the program is unlikely to be dropped, especially as policy inaction, most recently the retail FDI debacle, raised questions about the government’s ability to get things done. 

The ID program is one of Prime Minister Manmohan Singh’s pet projects and Mr. Nilekani remained confident the project would go ahead. He said Aadhaar would “definitely” happen and that “the question is who will do the enrollment” after the current phase is completed.

You can follow Ms. Stancati and India Real Time on Twitter @margheritamvs and @indiarealtime.