Aadhaar is a 12 digit unique identification number that can be obtained by a resident of India, based on their biometric and demographic data. Aadhaar project was introduced under the UIDAI scheme (Unique Identification Authority of India) by the UPA government in 2009. Nandan Nilekani, the founder of Infosys, was appointed as chairman of the project. According to World Bank’s Chief economist Paul Romer, ‘Aadhaar is the most sophisticated ID programme in the world’. Aadhaar project was initiated as an attempt towards having a single id that would capture all the details of the cardholder. It is considered as residence proof and not citizenship proof.
Hierarchy of management that covers different levels of management
A Dilemma of Aadhaar
1. Introduction: -
Aadhaar is a 12 digit unique identification number that can be obtained by a resident of India,
based on their biometric and demographic data. Aadhaar project was introduced under the UIDAI scheme
(Unique Identification Authority of India) by the UPA government in 2009. Nandan Nilekani, the founder
of Infosys, was appointed as chairman of the project. According to World Bank’s Chief economist Paul
Romer, ‘Aadhaar is the most sophisticated ID programme in the world’.
Aadhaar project was initiated as an attempt towards having a single id that would capture all the
details of the cardholder. It is considered as residence proof and not citizenship proof.
Objectives of the Report
- Make a Financial model of Aadhaar, to be self-sustaining and independent
- To increase the reach of Aadhaar across India
- To find ways to increase usability and easiness without compromising the privacy of an
individual.
- Restructure the current Aadhaar HR policy
Financial Model for Aadhaar to be Self-Sustaining.
For Aadhaar to be self-sustaining and independent it should first achieve its other objectives.
To Increase the reach of Aadhaar across India.
Finance & accounting dept is headed by deputy director general of finance. FD is responsible for
the formulation, Outcome Budget, Performance Budget, Screening of proposals involving financial
implications, Expenditure and Cash Management and Preparation of Annual Accounts of UIDAI.
According to the Unique Identification Authority of India, Oct 2018, total Aadhaar card holders in India
has Crossed 120 crores i.e. 1200041276 which is 89.9 % of the total population.
S.no State Name Total
Population
Number of
Aadhaar
Saturation
% 2018
1 Delhi 18345784 21771316 118.7%
2 Haryana 27388008 28416816 103.8%
3 Himachal Pradesh 7316708 7494254 102.4%
4 Goa 1542750 1578797 102.3%
5 Kerala 35330888 36088627 102.1%
6 Punjab 29611935 30238546 102.1%
7 Chandigarh 1126705 1144587 101.6%
8 Telangana 38472769 38835422 100.9%
2. 9 Dadra & Nagar
Haveli
378979 375080 99.0%
10 Uttarakhand 11090425 10971365 98.9%
11 Lakshadweep 71218 69824 98.0%
12 Daman & Diu 220084 212950 96.8%
13 Gujarat 63907200 61298270 95.9%
14 Pondicherry 1375592 1295928 94.2%
15 A & N islands 419978 395128 94.1%
16 Chhattisgarh 28566990 26848788 94.0%
17 West Bengal 97694960 91664941 93.8%
18 Tamil Nadu 76481545 71510406 93.5%
19 Maharashtra 120837347 112828077 93.4%
20 Odisha 45429399 42387505 93.3%
21 Karnataka 66165886 61426964 92.8%
22 Jharkhand 37329128 34649739 92.8%
23 Andhra Pradesh 52883163 48807824 92.3%
24 Madhya Pradesh 82342793 74326338 90.3%
25 Tripura 4057847 3646690 89.9%
26 Mizoram 1205974 1064674 88.3%
27 Uttar Pradesh 228959599 201320890 87.9%
28 Sikkim 671720 588814 87.7%
29 Rajasthan 78230816 68039176 87.0%
30 Bihar 119461013 100823589 84.4%
31 Manipur 3008546 2457725 81.7%
32 Arunachal Pradesh 1528296 1221723 79.9%
33 Jammu Kashmir 13635010 10303991 75.6%
34 Nagaland 2189297 1258034 57.5%
35 Meghalaya 3276323 919371 28.1%
36 Assam 34586234 3759107 10.9%
TOTAL 1335140909 1200041276 89.9%
*sources in references
According to the table, we can say that more and more people are getting aware of the Aadhaar card. To
spread it across the country government has to focus on northeast states that are Nagaland, Meghalaya,
Assam.
3. For this to happen Govt can start following initiatives –
1. Mandating schools to initiate Aadhaar for students.
UIDAI has made it clear that asking for Aadhaar card for school admission is against the Supreme
Court orders. As no child should be denied admission and other school facilities due to lack of Aadhaar
card.
School should initiate special Aadhaar Camps for students in coordination with local bodies and
students should be given Aadhaar cards once they are in schools. This will make sure that all students will
get the Aadhaar card.
2. Employer’s responsibility.
In the new era of Business, an employer should not look after profit maximization but also towards
the welfare of employees. Its employer’s responsibility to help the employee and his family to get an
Aadhaar card. This will help poor people to get Aadhaar as well as there won’t be any need to give
special discounts as an employer paying for the same.
3. Tie up’s with NGOs
Govt could tie up with NGOs so that they can increase their reach to the untouched part of India
where govt is not able to reach.
To find ways to increase usability and easiness without compromising the privacy of an
individual.
Aadhaar could be used in many ways –
1. Railway Ticket ReservationSystem.
IRCTC is Online govt portal to book railway tickets. In recent year IRCTC has improved a lot in
term of efficiency as well as frauds. It is seen that the IRCTC site consists of a lot of fake ID’s which are
used by touts for financial gains. Aadhaar cards could be made mandatory for such bookings which will
reduce the fraudulent practice.
2. Linking Aadhaar with ration card and making it digital.
Many people misuse ration card, for instance, many families who are above poverty and have a
good standard of living still have an orange ration card, such ration cards are used by their servant or they
rent cards to other people who gain extra benefits which they get from the government. To avoid such
fraud Aadhaar could be linked with ration card and make it digital. This will lead to a decrease in fraud
and misuse of Govt subsidies.
3. Linking Aadhaar with various schemes provided by govt
By linking Aadhaar will reduce the delay in receiving benefits of schemes. For instance, Aadhaar to
be linked with the National Pension Scheme this will delay the payment of pension every month.
4. Minimum use of Biometrics
Govt should reduce the biometric use of Aadhaar and it should be only used by UIDAI for
“deduplication”. The third party service provider should not be allowed to use biometric data of the user.
4. By focusing on the above things, we could look toward making Aadhaar self-sufficient & Independent.
Recently UIDAI as received Rs. 13.75 billion for Aadhaar Update
Funding –
1. Advertisement Opportunities.
Online Advertising Opportunities could be used by UIDAI as a source of fund. Companies could
advertise their product on Aadhaar card site, by keeping security feature in mind. This will reduce the
Aadhaar making cost. Even govt can advertise its own products like “Make in India”, “Swachh Bharat
Abhiyan”, “PMJDY” etc. In this way UIDAI which get payments instead of grants from govt.
2. Tax Rebate.
Govt can give some extra tax rebate to those companies who are donating some amount for
Aadhaar development or setting camps in areas where people are not having Aadhaar cards and helping
them to get one. This will have 2 benefits for companies as they will get a tax rebate as well as it will
increase the goodwill of the company.
Budget and Expenditure of UIDAI since its inception in 2009:
*all figures are in Crs INR unless mentioned
Year Budget Estimates Revised Estimates Expenditure
2009-10 120.00 26.38 26.21
2010-11 1,900.00 273.80 268.41
2011-12 1,470.00 1,200.00 1,187.50
2012-13 1,758.00 1,350.00 1,338.72
2013-14 2,620.00 1,550.00 1,544.44
2014-15 2,039.64 1,617.73 1,615.34
2015-16 2,000.00 1880.93 1680.44
2016-17 1140.00 1135.27 1132.84
2017-18 900.00 1150.00 1148.34
2018-19 1375.00 1345.00 1010.27*
*sources in references
6. 7 Construction of Buildings
and Data Centers-Capital
cost
0 49.84 26.07 39.99 106.08 75 61 43.11 53.16 10.96
8 Recurring Expenditure
Establishment cost of
UID Hqrs and ROs
12.85 40.43 56.21 72.42 82.53 77.97 90.51 91.93 103.70 80.16
Total 26.21 268.41 1187.5
0
1338.7
2
1544.4
4
1615.3
4
1680.4
0
1132.8
4
1148.3
4
1010.
27
*sources in references
Only funding is not important reducing expenditure is also required by which UIDAI would have
funds to spend on Research &development.
Conclusion.
Aadhaar card was introduced in 2009 with an aim of Unique ID for all, after a decade it has come
a long way. 89.9 % of the total population in India have Aadhaar card which is a huge success, it's much
higher than literacy rate which is 74.4%. Digitisation could lead to end corruption in Aadhaar and
Aadhaar would lead to end corruption in the country. Due to such success many other countries like
Malaysia are keen on adopting Aadhaar model for targeting delivery of subsidies, the even Philippines is
planning to copy Aadhaar biometric Id system. With the introduction of new 2 layered security i.e.
Virtual Id & Limited Access available to the service provider, improved the privacy of the user. This
could be India’s path to a brighter future.
References –
https://uidai.gov.in/about-uidai/unique-identification-authority-of-india/finance-accounts.html
https://economictimes.indiatimes.com/news/international/world-news/malaysia-keen-on-adopting-
aadhaar-model-for-target-delivery-of-subsidies/articleshow/66203062.cms
https://www.financialexpress.com/aadhar-card/philippines-plans-to-copy-indias-success-in-aadhaar-
biometric-id-system-to-get-poorest-on-map/1296124/
https://economictimes.indiatimes.com/wealth/personal-finance-news/10-lakh-people-enrol-update-
aadhaar-every-day-uidai/articleshow/64947581.cms?from=mdr
https://economictimes.indiatimes.com/news/economy/policy/uidai-introduces-new-two-layer-security-
system-to-improve-aadhaar-privacy/articleshow/62442873.cms?from=mdr
https://economictimes.indiatimes.com/news/politics-and-nation/uidai-cautions-schools-not-to-insist-on-
aadhaar-for-admission/articleshow/67242291.cms
https://www.corporate-cases.com/2018/11/aadhar-card-holders-in-india-as-on-31oct2018.html
https://www.thenewsminute.com/article/list-services-need-aadhaar-linking-and-ones-don-t-89002
https://www.business-standard.com/budget/article/budget-2018-uidai-gets-rs-13-75-billion-in-fy19-for-
aadhaar-upgrade-118020200903_1.html
https://uidai.gov.in/aadhaar-eco-system.html