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Indian Govt Approves Rs 3436.16Cr Funds For Aadhaar Project Phase IV


aadhaarThe Indian government has approved Rs 3,436.16 crore for Phase IV of the UID (Aadhaar card) scheme. This fund includes Rs 1,600 crore to cover the cost of enrolling an additional 40 crore residents, Rs 490 crore updation services, Rs 1,049 crore for printing and dispatch of Aadhaar letters and Rs 247.16 crore towards additional cost for construction of buildings for headquarters, data centers and non-data centers of UIDAI. According to the government report, Phase IV is to commence immediately. The time period to be covered by the funds released is not clear.

The government informed that around 31 crore UID numbers have been issued since September 29, 2010 and it hopes to release another 40 crore numbers by the end of March 2014.

Aadhaar Project Funding

On November 2009, the Standing Finance Committee (SFC) had approved Rs 147.31 crore to be issued during the Phase I of the scheme to meet expenditure in the first 12 months. In Phase II, Rs 3,023.01 crores was approved by the CC-UIDAI on July 22, 2010 to issue 10 crore UID numbers through multiple registrars, other project components and recurring establishment costs up to March 2014. On January 27, 2012, Rs 5791.74 crores was approved by CC-UIDAI for Phase III to issue UID numbers to 20 crore residents through multiple registrars up to March 2012, technology and other support infrastructure costs for creation, storage and maintenance of data and services for leveraging the usage of Aadhaar for the entire estimated resident population up to March 2017.

Aadhaar rollouts till now

It is worth noting that Aadhaar numbers have already been made mandatory including several departments such as the Brihanmumbai Municipal Corporation (BMC) and the revenue department. Plans are also being made to integrate issue of ration cards and passports also to individual Aadhaar numbers. In December 2012, five Indian banks had launched an instant prepaid card service called the Saral money service allowing users to open a bank account using their Aadhaar card for know your customer (KYC) validation. UIDAI has further partnered with 15 more banks to use Aadhaar as KYC validation.

In November 2012, Indian Government had announced plans to roll out an Aadhaar based Direct Cash Transfer initiative from January 1, 2013. Following this, all government departments who were transferring cash to individual beneficiaries, will transition to this electronic transfer system based on Aadhaar Payment Platform. This includes all subsidy transfers like education loans, scholarships, MNREGA payments, old age pension, PDS subsidies, LPG subsidies, Indira Awaas Yojna subsidies and fertilizer subsidies.

In October 2012, the government had launched Aadhaar enabled service delivery platform for citizens to access services of various government schemes such as wage payments, payment of social security benefits such as old-age payments, among others. In the same month, Vodafone had also launched a pilot project in Hyderabad using Aadhaar to verify and activate new prepaid and post paid connections.

However, the goofs up in the Aadhaar project also continue. In April 2013, we had reported that the Unique Identification Authority of India (UIDAI) has apparently issued around 3,858 Aadhaar letters with photos of trees, animals or buildings in place of the photos of individuals. In April 2012, UIDAI had apparently issued an Aadhaar card to a fictitious Mr Kothimeer (coriander) with a photo of a mobile phone. In May 2012, the Indian Postal Department had apparently sent back around 50,000 Aadhaar cards issued in Hyderabad, back to the UIDAI due non-existing addresses on the envelopes.

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  • http://www.facebook.com/people/Mukesh-Kamath/100000368847799 Mukesh Kamath

    Good work. Nice round up of the project. What is not clear in the aadhaar project financing section is whether the funding of 3436 crore in phase IV for generating 40 crore aadhaar’s is in addition to or includes all other aadhaar numbers in other phases.

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