The much awaited Aadhaar enabled system for direct cash transfer to beneficiaries under social schemes such as MNREGA and pension will be launched tomorrow by Prime Minister Manmohan Singh at Dudu, Rajasthan.

The payment mechanism is aimed at checking corruption and pilferage in the social sector schemes that seek to promote financial inclusion.

The launch of the scheme by the Prime Minister coincides with the second anniversary of Aadhaar project, which is being implemented by the Unique Identification Authority of India (UIDAI).

In the last two years, the UIDAI has generated over 20 crore Aadhaar numbers. The 21st Crore Aadhaar number will be handed over to the resident by Singh at a function at Dudu tomorrow.

The UPA government is making this a big event as its top brass including Chairperson Sonia Gandhi, Finance Minister P Chidambaram, Chief Minister of Rajasthan Ashok Gehlot, Planning Commission Deputy Chairman Montek Singh Ahluwalia, Minister of State for Communications Sachin Pilot and Planning Minister Ashwani Kumar, will attend the meet.

"This is very significant thing and it will help reducing wastage, fraud and corruption," UIDAI Chairman Nandan Nilekani told reporters here.

Use of Aadhaar based delivery mechanism will improve compliance management, reduce leakages and increase efficiency and accountability of the government's social sector schemes, he said.

"The government is rolling out Aadhaar enabled service delivery initiative in 51 districts across the country. It will be used for making pension payments, MNREGA payments, PDS distribution, scholarship payments etc," a statement said.

UIDAI Director General R S Sharma said, "The 80 per cent of the work in the 20 districts out of total 51 districts, will be completed by December 2012. Around 80 per cent work in the remaining 31 districts will be completed by the March 31, 2013."

UIDAI has been mandated to cover a total population of 60 crore by March 2014 across 18 states including Delhi, Haryana, Punjab, Tamil Nadu, Himachal Pradesh and Rajasthan.

Service providers including railways, banks and telecom companies recognise Aadhaar as valid proof of identity and residence.