No card, only a number despite Rs45,000 crore being spent on the UID project-Monelylife
Moneylife Digital Team
July 07, 2010 07:45 PM
The Aadhaar project of the UIDAI will just provide unique ID numbers and not unique ID cards as was widely thought
The Unique Identification Authority of India (UIDAI), which is all set for a pilot rollout of its ambitious unique ID (UID) project Aadhaar, will be spending a whopping Rs45,000 crore on the project. But all this money will be spent only on creating a UID number and not a physical ID card-since there is no budget for issuing such cards.
The very first paragraph on UIDAI's website clearly says that its job is to issue unique identity numbers and not physical ID cards. Here is what the site says:"UIDAI has been created as an attached office under the Planning Commission. Its role is to develop and implement the necessary institutional, technical and legal infrastructure to issue unique identity numbers to Indian residents."
This also means Aadhaar is not an ID card but just a unique number. Much more work needs to be done before it can become a smart card for proper identification. So who will issue the ID cards? Most probably, the responsibility will rest with entities which issue ration cards and voter ID cards.
"Nandan (Nilekani, the chairman of UIDAI) wants to keep his hands and conscience clean by just taking on the responsibility of issuing unique numbers to people. He will leave the issue of smart cards to the other corrupt bureaucracies that are responsible for issuing ration cards and voter (ID) cards," said an IT expert, preferring anonymity.
The UIDAI will collect face details, fingerprints from all ten fingers and iris attributes of all residents for ensuring uniqueness of the identities. For collecting data, UIDAI will use various State and Union government agencies-called 'registrars'-like the departments of rural development, public distribution and consumer affairs along with employees of banks, State-run insurance agencies and oil-marketing companies.
The first set of UID numbers will be issued between August 2010 and February 2011.
Thereafter, 600 million UID numbers will be issued in the next five years. The numbers will be issued through various registrar agencies across the country, says the UIDAI website.
Earlier in April, the Income-Tax Department's proposal to issue biometric PAN cards had been put on hold to avoid duplication with the UID numbers to be issued by the UIDAI. A senior finance ministry official had said, "The biometric PAN card project of the department has been kept in abeyance till the UID is rolled out. In the meantime, the suspension will allow the I-T Department to understand and analyse whether after (the issue of) a biometric UID, a PAN with similar features would be necessary or not." (See: http://www.moneylife.in/article/8/4580.html).
After spending about £250 million over eight years on developing the national ID (NID) programme, the UK government abolished it earlier this year. This scrapping of the project means that Britain will avoid spending another £800 million over a decade. The NID was launched in July 2002-and as of February 2010, its total costs rose to an estimated £4.5 billion. The UK government has cited higher costs, impracticality and ungovernable breaches of privacy as reasons for cancellation of the NID project. These concerns may impact India as well. (See: http://www.moneylife.in/article/8/5684.html).
Finance minister Pranab Mukherjee had sanctioned Rs1,900 crore for the UIDAI in his Budget for FY11. According to estimates, the total cost of the UID project will be over Rs45,000 crore.
UIDAI itself had admitted that the cost of running such a huge database over years will cost a lot. According to a document on UID numbering available on UIDAI's site, systems that are to be as widely used and for multiple different applications such as the UID will have to be in active use for a very long period.
"Once a billion plus people have been assigned a UID, and applications using the UID to conduct their transactions are evolved, anything that requires modifications to existing software applications and databases will cost a lot," the document said.
Biometric PAN cards put on hold
The government does not want a duplication of effort as biometric details will be captured by the Unique Identity Authority of India
The Income-Tax department’s proposal to issue biometric PAN cards has been put on hold so as to avoid duplication with the UID numbers to be issued by the Unique Identity Authority of India (UIDAI).
The biometric Permanent Account Number (PAN) card was proposed by then finance minister P Chidambaram in 2006 to counter the problem of duplicate PAN cards which were uncovered during I-T searches and raids by police and other enforcement agencies.
The proposed biometric PAN cards would have carried the income-tax payer’s fingerprints (two from each hand) and the face.
Such a card, it was hoped, would be difficult to duplicate or manipulate.
But after the UIDAI was set up last year, the Authority decided to create a database of similar biometric information for all residents of the country.
To avoid duplication of effort, a senior finance ministry official said, “The biometric PAN card project of the department has been kept in abeyance till the UID is rolled out. In the meantime, the suspension will allow the I-T department to understand and analyse whether after a biometric UID, a PAN with similar features would be necessary or not.”
The UID number, expected to roll out by the middle of next year, will capture the fingerprints of all ten fingers, the face and iris of an individual.
The UID Authority is preparing to roll out biometric numbers and hence it would not be appropriate for the I-T department to run a similar project in parallel, the official said.
The entire effort to have biometric PAN cards was to avoid duplication and stop fraudulent practices by tax-evaders and anti-nationals. The UID would achieve the same purpose, the official added.
Once the UID numbers start rolling out, a decision would be taken on whether the database could help the I-T department in stopping the misuse of PAN cards or whether the biometric PAN cards would be necessary, the official added.
The I-T department, in a number of cases, has uncovered several individuals possessing multiple PAN cards or forging the details.
While PAN is a 10-digit alphanumeric number allotted by the I-T department to taxpayers, biometrics is a biological method to identify physical features of an individual.
UK scraps National ID project; Will India's UID face the same fate?
Moneylife Digital Team
July 07, 2010 07:45 PM
The Aadhaar project of the UIDAI will just provide unique ID numbers and not unique ID cards as was widely thought
The Unique Identification Authority of India (UIDAI), which is all set for a pilot rollout of its ambitious unique ID (UID) project Aadhaar, will be spending a whopping Rs45,000 crore on the project. But all this money will be spent only on creating a UID number and not a physical ID card-since there is no budget for issuing such cards.
The very first paragraph on UIDAI's website clearly says that its job is to issue unique identity numbers and not physical ID cards. Here is what the site says:"UIDAI has been created as an attached office under the Planning Commission. Its role is to develop and implement the necessary institutional, technical and legal infrastructure to issue unique identity numbers to Indian residents."
This also means Aadhaar is not an ID card but just a unique number. Much more work needs to be done before it can become a smart card for proper identification. So who will issue the ID cards? Most probably, the responsibility will rest with entities which issue ration cards and voter ID cards.
"Nandan (Nilekani, the chairman of UIDAI) wants to keep his hands and conscience clean by just taking on the responsibility of issuing unique numbers to people. He will leave the issue of smart cards to the other corrupt bureaucracies that are responsible for issuing ration cards and voter (ID) cards," said an IT expert, preferring anonymity.
The UIDAI will collect face details, fingerprints from all ten fingers and iris attributes of all residents for ensuring uniqueness of the identities. For collecting data, UIDAI will use various State and Union government agencies-called 'registrars'-like the departments of rural development, public distribution and consumer affairs along with employees of banks, State-run insurance agencies and oil-marketing companies.
The first set of UID numbers will be issued between August 2010 and February 2011.
Thereafter, 600 million UID numbers will be issued in the next five years. The numbers will be issued through various registrar agencies across the country, says the UIDAI website.
Earlier in April, the Income-Tax Department's proposal to issue biometric PAN cards had been put on hold to avoid duplication with the UID numbers to be issued by the UIDAI. A senior finance ministry official had said, "The biometric PAN card project of the department has been kept in abeyance till the UID is rolled out. In the meantime, the suspension will allow the I-T Department to understand and analyse whether after (the issue of) a biometric UID, a PAN with similar features would be necessary or not." (See: http://www.moneylife.in/article/8/4580.html).
After spending about £250 million over eight years on developing the national ID (NID) programme, the UK government abolished it earlier this year. This scrapping of the project means that Britain will avoid spending another £800 million over a decade. The NID was launched in July 2002-and as of February 2010, its total costs rose to an estimated £4.5 billion. The UK government has cited higher costs, impracticality and ungovernable breaches of privacy as reasons for cancellation of the NID project. These concerns may impact India as well. (See: http://www.moneylife.in/article/8/5684.html).
Finance minister Pranab Mukherjee had sanctioned Rs1,900 crore for the UIDAI in his Budget for FY11. According to estimates, the total cost of the UID project will be over Rs45,000 crore.
UIDAI itself had admitted that the cost of running such a huge database over years will cost a lot. According to a document on UID numbering available on UIDAI's site, systems that are to be as widely used and for multiple different applications such as the UID will have to be in active use for a very long period.
"Once a billion plus people have been assigned a UID, and applications using the UID to conduct their transactions are evolved, anything that requires modifications to existing software applications and databases will cost a lot," the document said.
Biometric PAN cards put on hold
The government does not want a duplication of effort as biometric details will be captured by the Unique Identity Authority of India
The Income-Tax department’s proposal to issue biometric PAN cards has been put on hold so as to avoid duplication with the UID numbers to be issued by the Unique Identity Authority of India (UIDAI).
The biometric Permanent Account Number (PAN) card was proposed by then finance minister P Chidambaram in 2006 to counter the problem of duplicate PAN cards which were uncovered during I-T searches and raids by police and other enforcement agencies.
The proposed biometric PAN cards would have carried the income-tax payer’s fingerprints (two from each hand) and the face.
Such a card, it was hoped, would be difficult to duplicate or manipulate.
But after the UIDAI was set up last year, the Authority decided to create a database of similar biometric information for all residents of the country.
To avoid duplication of effort, a senior finance ministry official said, “The biometric PAN card project of the department has been kept in abeyance till the UID is rolled out. In the meantime, the suspension will allow the I-T department to understand and analyse whether after a biometric UID, a PAN with similar features would be necessary or not.”
The UID number, expected to roll out by the middle of next year, will capture the fingerprints of all ten fingers, the face and iris of an individual.
The UID Authority is preparing to roll out biometric numbers and hence it would not be appropriate for the I-T department to run a similar project in parallel, the official said.
The entire effort to have biometric PAN cards was to avoid duplication and stop fraudulent practices by tax-evaders and anti-nationals. The UID would achieve the same purpose, the official added.
Once the UID numbers start rolling out, a decision would be taken on whether the database could help the I-T department in stopping the misuse of PAN cards or whether the biometric PAN cards would be necessary, the official added.
The I-T department, in a number of cases, has uncovered several individuals possessing multiple PAN cards or forging the details.
While PAN is a 10-digit alphanumeric number allotted by the I-T department to taxpayers, biometrics is a biological method to identify physical features of an individual.
UK scraps National ID project; Will India's UID face the same fate?
May 31, 2010 03:23 PM
Moneylife Digital Team
According to some experts, the least that needs to be done is that UIDAI should make a comprehensive case to justify why what was rejected in the UK is good for India
The Unique Identification Authority of India (UIDAI) has been busy assembling bits and bytes for its ambitious citizen identification (ID) project. However, in another part of the world, a similar identification project has now been scrapped by none other than the UK government. This has given a boost to pro-privacy architects in India who are worried about the privacy implications of the UID project.
The scrapping of the National ID programme by the new government in the UK was not unexpected. Many people, organisations and even some politicians were questioning the viability of the NID project. According to a BBC report, the NID scheme was aimed at tackling fraud, illegal immigration and identity theft—but it was criticised for being too expensive and an infringement of civil liberties.
Theresa May, UK's home secretary, was quoted as saying that the NID will be abolished within 100 days with all cards becoming invalid. The new government would put legislation to this effect before Parliament with an aim to make it a law by August. Around 15,000 people who voluntarily paid £30 for a card since the 2009 rollout in Manchester, will not get a refund, the BBC report says.
What’s interesting is that the UK government has cited higher costs, impracticality and ungovernable breaches of privacy as reasons for cancellation of the NID project. These reasons may have a similar kind of impact in India as well.
According to some experts, the least that needs to be done is that UIDAI should make a comprehensive case to justify why what was rejected in the UK is good for India. They feel surprised about why the media has not publicised the reports that the UK has rejected the UID primarily because of concerns regarding civil liberties.
"One hopes that the UID-related contracts awarded already to E&Y and MindTree do not have any lingering after-effects, should commonsense (we don't have a great track record in commonsense, especially where money is concerned, but it's never too late to hope) hit our government and the UID agency be asked to pack up its tents," said one expert.
While announcing the abolition of NID in the UK, Ms May said, “This Bill is a first step of many that this government is taking to reduce the control of the state over decent, law-abiding people and hand power back to them. With swift Parliamentary approval, we aim to consign identity cards and the intrusive ID card scheme to history within 100 days."
Back home, according to UIDAI, the first UID numbers will be issued from August 2010. Over five years, the Authority plans to issue 600 million UIDs. The numbers will be issued through various ‘registrar’ agencies across the country, UIDAI said on its website.
Finance minister Pranab Mukherjee had sanctioned Rs1,900 crore for the UIDAI in his budget for FY10-11. According to a document on UID numbering available on UIDAI's site, systems that are to be as widely used and for multiple different applications as UID, tend to be very sticky in the sense that these systems would be in active use for centuries. Once a billion plus people have been assigned a UID, and applications using the UID to conduct their transactions are evolved, anything that requires modifications to existing software applications and databases will cost a lot.
Over eight years, the UK government spent around £250 million on developing the national ID programme. However, its abolition means the government will avoid spending another £800 million over a decade. The NID was launched in July 2002 and as of February 2010, its total costs rose to an estimate of £4.5 billion.
The Cost of the UID project may not be a hindrance for the Indian government, whose accounts are flush with money from the 3G auction, but what about its impact on civil liberties? Will there be a comprehensive discussion on the subject? One can only hope that the Indian government and the UIDAI closely study the reasons for the UK government’s decision to scrap its National ID project and then provide compelling reasons for India to go ahead with its UID project.
