The Cabinet today approved the proposal for introducing the National Identification Authority of India Bill, 2010 in Parliament.

The Bill proposes to constitute a statutory authority to be called the National Identification Authority of India and lay down the powers and functions of the Authority, the framework for issuing UID numbers (aadhaar numbers), major penalties and other related matters through an Act of Parliament.

This will involve an expenditure of 3023.01 crore which includes project components for issue of UID numbers (called aadhaar numbers) by March 2011, and recurring establishment costs for the entire project phase of five years ending March 2014.

The UID project is primarily aimed at ensuing inclusive growth by providing a form of identity to those who do not have any identity. It seeks to provide aadhaar numbers to the marginalised sections of society and thus would strengthen equity. Apart from providing identity, the aadhaar number will enable better delivery of services and effective governance.

The Bill seeks to establish the National Identification Authority of India for the purpose of issuing aadhaar numbers to individuals residing in India and to certain other classes of individuals, the manner of authentication of such individuals and other related and incidental matters.