The Union Cabinet today approved the proposed National Identification Authority of India Bill, 2010, which envisages to make UIDAI a statutory body.

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

The Bill will now be introduced in parliament for approval by the members.

The project will involve an expenditure of Rs 3023.1 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, a statement said.

The UID project is primarily aimed at ensuing inclusive growth by providing a form of identity to those who do not have any identity.

Apart from providing identity, the aadhaar number will enable better delivery of services and effective governance, it said.

The aadhaar numbers would be issued 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.