The Unique Identification Authority of India (UIDAI), which had projected a demand of Rs 3,373 crore in the budget estimates for 2011-12, was approved only Rs 1,470 crore, Parliament was informed on past Thursday.

However, the UID project will not be hampered on account of the shortfall, Minister of State for Planning Ashwani Kumar said in a written reply to the Rajya Sabha. "UIDAI had projected a demand of Rs 3,373 crore in budget estimates (BE) for 2011-12 against which Rs 1,470 was approved," he said.

On whether the project will be hampered in view of the lower allocation, since the government provides all funds required for its implementation, Kumar said: "No...Adequate funds are available at present for the project."

UIDAI has been mandated by the government to issue a unique identification number -- 'Aadhar'. It can be verified and authenticated in an online platform in a cost effective manner and will eliminate duplicate and fake identities. UIDAI, headed by Nandan Nilkeni, has already delivered UID numbers to around 10 million people.

The programme was initially conceived by the Planning Commission in 2006 as an initiative that would provide identification to each Indian resident and would be primarily used as the basis of efficient delivery of welfare services.

It would also act as a tool for effective monitoring of various programmes and schemes of the Government. Senior government officials have said that the number is likely to be a mandatory criterion for availing certain services like LPG connection.