---
layout: default
title: "Much at Stake for Tech Sector in UID Project"
description: "An Economic Times report examining how delays and uncertainty around the UID project could affect the technology sector, including insights from Sunil Abraham and industry analysts."
categories: [Media mentions]
date: 2011-12-12
source: "The Economic Times"
authors: ["Pranav Nambiar"]
permalink: /media/much-at-stake-tech-sector-uid-project/
created: 2025-12-08
---

**Much at Stake for Tech Sector in UID Project** is an *Economic Times* report published on 12 December 2011. The article discusses how the Parliamentary Standing Committee's objections to the National Identification Authority of India (NIAI) Bill may slow down the UID (Aadhaar) programme, affecting associated technology contracts and market expectations. It includes expert commentary from Sunil Abraham on biometric security issues and potential design changes. The article was also published on [*The Times of India*](/media/much-at-stake-for-tech-sector-in-uid-project-times-of-india) on the same date.


## Contents

1. [Article Details](#article-details)  
2. [Full Text](#full-text)  
3. [Context and Background](#context-and-background)  
4. [External Link](#external-link)

## Article Details

<dl class="media-details">
  <dt>📰 Published in:</dt>
  <dd><em>The Economic Times</em></dd>

  <dt>📅 Date:</dt>
  <dd>12 December 2011</dd>

  <dt>👤 Author:</dt>
  <dd>Pranav Nambiar</dd>

  <dt>📄 Type:</dt>
  <dd>News Report</dd>

  <dt>📰 Newspaper Link:</dt>
  <dd>
    <a class="btn" href="https://economictimes.indiatimes.com/tech/ites/much-at-stake-for-tech-sector-in-uid-project/articleshow/11077583.cms">
      Read Online
    </a>
  </dd>
</dl>

## Full Text

<div class="highlighted-text" id="fulltext">

<p><strong>Synopsis:</strong><br>
Tech companies might see a delay in project execution which may lead to delays in revenue yields as a Parliamentary panel raised a red flag against the UID project.</p>

<p><strong>BANGALORE:</strong> With the Parliamentary Standing Committee on Finance raising a red flag against the National Identification Authority of India (NIAI) Bill to grant the UID (or Aadhaar) project legal status, the project looks set for a slowdown. That could have broad implications for the tech sector that had laid substantial hope on it, especially when global markets are slowing down.</p>

<p>The UID project is estimated to offer IT companies a Rs 15,000–Rs 20,000-crore opportunity. This includes building an ecosystem around the project, comprising biometrics, databases, smartcards, storage and system integration. Since the UIDAI implements an open-system, plug-and-play approach, entrepreneurs and startups can develop applications in numerous areas. Some of the applications of Aadhaar are seen in areas such as food distribution, financial inclusion and know-your-customer services.</p>

<p>The parliamentary committee has said that the project might be too expensive and duplicates the National Population Register's (NPR) efforts to collect biometric and other data for the national census. Some have also called for a change of collection of data from biometric data, which they consider insecure for smartcards (as fraudsters can take your fingerprints from objects that you touch). The Cabinet need not accept the committee's recommendations.</p>

<p>Thus it is unclear if the UID project will be scrapped, watered down or persisted with in its current form. Some contracts have been granted to tech majors. According to sources, the current contracts are not significantly large in size and their cancellation will not make a big dent in the companies' books. He added that scrapping of the project from a longer-term perspective could be a negative.</p>

<p>Government public services initiatives like public distribution system (PDS) and e-governance schemes are expected to spark off more projects requiring technology enablement. On the UIDAI website, Wipro in March 2011 won a contract to supply, install and commission hardware and software for data centres at Bangalore and NCR. MindTree in April 2010 won a contract for application software development, maintenance and support. TCS, Accenture, HP, Satyam, Intelenet Global, HCL Infosystems, Geodesic are some others that have won contracts.</p>

<p>Ankur Rudra, IT sector analyst at Ambit Capital, (PDS) and e-governance schemes are expected to spark off more projects requiring technology enablement.</p>

<p>Sunil Abraham, ED of the Centre for Internet and Society, said if changes are incorporated to the Bill, it would not necessarily be anti-technology. The organization had raised concerns about security issues around biometric data. "There might be a change in the design of the UID project, but technology will remain a critical element," he added. Siddharth Pai, MD of global sourcing advisory firm Technology Partners International (TPI) India, said that the UID project is a very critical infrastructure from a national perspective and chances of the project being scrapped are little.</p>

<p>He added that tech companies might experience delay in government spends and see a delay in project execution. This may lead to delays in revenue yields. IT company officials also acknowledge that there could be delays in projects which could increase costs for them. None wanted to be quoted on this issue.</p>

</div>

<button class="copy-btn-full" data-copytarget="#fulltext">Copy Full Text</button>

{% include back-to-top.html %}

## Context and Background

This article was published during a period of national scrutiny over the legal foundations of the UID (Aadhaar) programme. The Parliamentary Standing Committee's objections introduced uncertainty for both the project and the technology ecosystem around it.

The piece highlights three themes central to early Aadhaar debates:

- the scale of commercial opportunity for IT firms,  
- concerns around duplication with the National Population Register, and  
- emerging critiques about biometric security and data design.

Sunil Abraham's remarks reflect civil society's position at the time: questioning biometric vulnerabilities while acknowledging that technology would remain core to any revised identity architecture.

## External Link

- <a href="https://economictimes.indiatimes.com/tech/ites/much-at-stake-for-tech-sector-in-uid-project/articleshow/11077583.cms">Read on The Economic Times</a>

<style>
.media-details {
  background: #f9fbfe;
  border: 1px solid #d8e2f0;
  border-radius: 10px;
  padding: 1.2rem 1.4rem;
  max-width: 700px;
  margin: 1.2rem auto;
  font-size: 0.96rem;
  line-height: 1.5;
  color: #333;
  box-shadow: 0 2px 4px rgba(0,0,0,0.04);
}
.media-details dt {
  font-weight: 600;
  color: #1b2a49;
  margin-top: 0.7rem;
}
.media-details dd {
  margin: 0 0 0.3rem 0.3rem;
  color: #555;
}
.highlighted-text {
  background-color: #fffbea;
  border-left: 4px solid #f2ce61;
  padding: 1rem 1.2rem;
  border-radius: 8px;
  line-height: 1.65;
  color: #333;
  margin-bottom: 0.8rem;
}
.highlighted-text p { margin-bottom: 1rem; }
.copy-btn-full {
  display: inline-block;
  background: #f1f1f1;
  border: 1px solid #ccc;
  font-size: 0.85rem;
  padding: 0.4rem 0.8rem;
  border-radius: 6px;
  cursor: pointer;
  transition: background 0.2s ease;
  margin-bottom: 1.5rem;
}
.copy-btn-full:hover { background: #e5e5e5; }
</style>

<script>
document.addEventListener('DOMContentLoaded', () => {
  document.querySelectorAll('.copy-btn-full').forEach(btn => {
    btn.addEventListener('click', async () => {
      const target = document.querySelector(btn.getAttribute('data-copytarget'));
      if (!target) return;
      try {
        await navigator.clipboard.writeText(target.innerText.trim());
        const original = btn.textContent;
        btn.textContent = 'Copied!';
        setTimeout(() => (btn.textContent = original), 1500);
      } catch (e) {
        btn.textContent = 'Copy failed';
        setTimeout(() => (btn.textContent = 'Copy Full Text'), 1500);
      }
    });
  });
});
</script>