UIDAI's Aadhaar Project: Challenges Ahead

 
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Case Details:

Case Code : PROM013
Case Length : 15 pages
Period : 2009-2012
Organization : Unique Identification Authority of India
Pub Date : 2012
Teaching Note :Not Available
Countries : India
Industry : -

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"In the Indira years, the slogan was 'garibi hatao... In the 1970s and 1980s, people's aspirations had focused on basic essentials - roti, kapda, aur makaan... Since the reforms in the 1990s, the emphasis moved to...bijli, sadak, and paani. In recent years, as growth has accelerated and access to basic infrastructure has improved further, aspirations among the poor have shifted again... Today, it's all virtual things - it's about UID number, mobile phone, and bank account... With that, they can access services, benefits, and their rights... We are looking at a post-Aadhaar world." 1

- Nandan Nilekani, former CEO and co-founder and of Infosys Technologies Limited (Infosys) and Chairman of Unique Identification Authority of India, commenting on Aadhaar, in 2010

"Technologically, it [Aadhaar] is a very simple project. The challenge is in making sure that literally hundreds of thousands of officers fall in line, (and that) they rally to his [Nandan Nilekani] call and march to his tune" 2

- NR Narayana Murthy, co-founder of Infosys, commenting on Aadhaar and UIDAI's Chairman, Nandan Nilekani, in September 2011

Introduction

On February 7, 2012, Nandan Nilekani (Nilekani), former Chief Executive Officer (CEO) of India-based technology company, Infosys Technologies Limited and Chairperson of the Unique Identification Authority of India3 (UIDAI), announced that the UIDAI would refresh its data collection process by including the best finger printing technology and by introducing the multiple-try method in the second phase of Aadhaar enrolment in April 2012. Aadhaar, previously called the Unique Identification (UID) project, was the 12-digit identification number provided by the UIDAI on behalf of the Government of India (GoI).

The number served as proof of address and identity for citizens anywhere in India. The Aadhaar project was initiated by the United Progressive Alliance4 (UPA) under the guidance of Manmohan Singh (Singh), Prime Minister (PM) of India and member of the UPA, to provide an identity to the 1.2 billion citizens of India. The project aimed to plug loopholes in welfare programs where checking leakages and identifying beneficiaries was a major challenge. There was an absolute guarantee that no two people would have the same Aadhaar, according to the UIDAI. Besides, it could not be duplicated either. Thus on January 28, 2009, the UIDAI was constituted under the aegis of the Planning Commission5. Subsequently in June 2009, Nilekani was invited by Singh to head the Aadhaar project and was given the rank of a union cabinet minister as Chairperson of the UIDAI. After being appointed UIDAI Chairman, Nilekani said, "The Government has come to the conclusion that this project is strategic and worth it. I have been invited to lead this project. I believe that it is viable and I will do my best to make it viable.6"

In September 2010, the Aadhaar project was launched by Singh and UPA Chairperson, Sonia Gandhi (Gandhi), in Tembhali village in Maharashtra. The launch signified UIDAI's core initiative of giving the poor and marginalized in India an easily verifiable and mobile identity. It was reported that the poor usually migrated in search of work from their villages and faced problems regarding their identity. The Aadhaar number was expected to give the villagers their first mobile identification. Gandhi emphasized the importance of Aadhaar in the context of India's increasingly mobile population and in fulfilling GoI's commitment to inclusive growth. Since the top people of the GoI were involved in the project, the Aadhaar project was accorded a VIP7 status.

Having invited Nilekani, Singh gave him full autonomy during the implementation of the Aadhaar project. Nilekani was given a free hand to recruit good talent and implement the project without the monitoring of the Planning Commission. For the FY 2009-2010, the UIDAI was given a budget of US$ 22 million for implementing the first phase of the Aadhaar project covering 200 million residents of India.8

Introduction contd... - Next Page>>


1] R Ramakumar, "Identity Concerns," http://www.frontlineonnet.com, 2010.
2] R Jagannathan, "Am I a virus? asks UID's Nilekani. The Answer: Yes, you are," www.firstpost.com, September 28, 2011.
3] UIDAI is an agency set up by the Government of India for implementing the AADHAAR scheme, a unique identification project.
4] The United Progressive Alliance is a coalition of political parties heading the GoI.
5] The Planning Commission is an institution of the GoI set up to promote a rapid rise in the living standards of people by the efficient exploitation of resources in the country, increasing production, and offering employment opportunities to all in the service of the community.
6] "Unique ID will Enable More Effective Public Delivery," www.hindu.com, 2009.
7] VIP or Very Important Person is a dignitary who is accorded special privileges owing to his or her status.
8] "Rs.100 crore for Unique Identification Project," www.hindu.com, February 17, 2009.


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