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Large returns expected from Aadhaar project

-The Pioneer

Integrating unique identification number project “Aadhaar” with various social sector schemes like rural employment guarantee programme and PDS would yield rich dividends for the government according to cost benefit analysis study done by National Institute of Public Finance and Policy (NIPFP).

“After taking into account all the costs, and making modest assumptions about leakages, the study finds that the Aadhaar project would yield an internal rate of return of 52.85 percent to the Government,” NIPFP said in a statement. Substantial benefits, it added, would accrue to the government by integrating Aadhaar with schemes such as PDS, MNREGS, fertiliser and LPG subsidies as well as certain housing, education and health programmes.

As per the projections, the benefits accruing from implementation of Aadhaar scheme would exceed the expenditure in 2015-16 and in 2020-21 the total benefit would be Rs25,100 crore as against the expenditure of Rs4,835 crore.

The Government is planning to roll out the ambitious electronic Direct Cash Transfer scheme for beneficiaries of subsidised items from January next year.