The Planning Commission Saturday said the Nandan Nilekani-led UIDAI project is better than the one being advocated by the Home Ministry for capturing data regarding residents and improving the delivery of the government schemes.

"We have suggested that what Unique Identification Authority of India (UIDAI) is doing is actually better (than the proposal of issuing smart cards)," Plan panel Deputy Chairman Montek Singh Ahluwalia told reporters on the sidelines of the North-East Business Summit.

Under the UIDAI, he said, "All the details are centrally stored and you identify the person with (unique) identity number through any secured mobile telephone connection".

He was responding to questions on the proposal of the Home Ministry under which a chip-based smart card will be issued to all residents on the basis of record maintained by the National Population Register (NPR) -- a digital data base currently under preparation.

Home Minister P Chidambaram had earlier said that "the data collected by multiple registrars of the UIDAI does not meet the degree of assurance required under the NPR from the point of view of internal security".

According to Ahluwalia, "There is a big difference between the technology UIDAI is using which is based on the identity number and you will actually have online authentication. You don't have to swipe the card to authenticate yourself."

He further said whatever money has been sought for UIDAI will be realised in the form of increased efficiency.

"... if you want a platform to improve the efficiency of government schemes' delivery that money is well worth it," he said.