UID budget boost to drive smartcard technologies

by Manu Sharma    Mar 02, 2010

The Unique Identification (UID) project has received a massive hike of Rs 1,900 crore in the budgetary allocation for 2010-11. The sum is likely to drive investments in smart card technologies, where chips, software and biometrics play a big role.

Besides allocation of Rs 100 crore each for the financial inclusion fund and the financial inclusion technology fund is also expected to drive the demand for smart cards and identification technologies.

Vinnie Mehta, executive director, MAIT said, UIDAI will go a long way in addressing the security and challenges of the governance in national programs especially for the poor.

Rostow Ravanan, CFO, Mindtree said, The allocation of Rs 1,900 crore towards the implementation of the UID project and setting up of a committee to oversee investment in IT infrastructure in the government sector will not only provide the necessary boost to the domestic IT Services industry but also provide benefits to the common citizen with increased efficiency in delivery. "

Currently, UIDAI is undergoing a pilot run in Karnataka is expected to be complete by 2012. Several IT companies, including IBM, TCS, Wipro, Intel, HP, HCL and Sun Microsystems, are understood to have signed agreements with the state government.

Karnataka would be the first state to come under the UID project that seeks to issue a unique ID number for each citizen. The project headed by Nilekani, has been holding discussions with various state governments, banks and financial institutions, and private agencies. Reports indicate that several PSUs like ITI, Bharat Electronics and ECIL have also been short listed for the project.

The pilot project in Karnataka will be carried over by the Department of e-Governance, which will recognize rural and urban districts and arrange for the database for these.

Ashok Chandak, senior director, Global Sales and Marketing, NXP Semiconductors said, The allocation of Rs. 1,900 crore to the UIDAI would provide an effective platform for inclusive growth and enable the participation of the rural population integrating them with various social welfare schemes and development.

The project will also help the domestic IT market to come out of the market fluctuation by assigning different tasks to the private software companies in India.