Unique Identification Authority of India (UIDAI), established in February 2009 promises to become the harbinger of another IT revolution in India. The authority, headed by Nandan Nilekani, aims to provide a unique number to all Indian nationals based on a biometric database. The major advantages of the UID numbers will be:
- Promoting 'Financial inclusion' through smooth distribution of subsidies and grants under the poverty alieviation programmes such as NREGA
- Conducting free and fair elections, sans rigging
- Controlling illegal immigration into India
- Combatting terrorist activities on our soil.
The estimated cost of providing a unique identity to Indian citizens is expected to cost US $ 6 billion (Rs.30,000 crores). The first phase of its implementation is likely to create business opportunities worth over Rs.6,500 crores. The finance minister has provided Rs.1,900 crores for this prestigious project in budget 2010-11. Top IT vendors including Infosys, TCS, Wipro, IBM, Accenture, Mastek, Mindtree, Siemens, Mahindra Satyam and Logica have been initially shortlisted for the UID project. This will be followed by technical evaluation of these vendors. 'Ernst & Young' has been appointed as consultant to the project. The project will be a major milestone for India's Rs.66,000 crore domestic IT market.
The gigantic proportion of IT spending envisaged through the project will give a major boost to the revenues of Indian IT industry. The learning generated through the implementation of the project will help these companies to tap the market for such project around the globe. Evaluation of this project and the vendors associated with its implementation, augers very well for the bottomline of these companies. Investors are advised to have a decent exposure to the domestic IT sector to reap the benefits of the second IT revolution in the world, this time led from the front by India.
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