The union cabinet Friday approved a bill to accord legal backup to the project providing unique identification numbers for the residents of the country.
The bill titled the National Identification Authority of India Bill, 2010 was approved by the cabinet in its meeting here chaired by Prime Minister Monmohan Singh, said an official release.
The cabinet also decided to give the go-ahead to the introduction of the bill in parliament in its upcoming winter session, the statement added.
"The bill seeks to constitute a statutory authority to be called the National Identification Authority of India (NIAI) and lay down its powers and functions, besides the framework for issuing unique identity (UID) numbers to be known as aadhaar numbers," the statement said.
The law will empower the NIAI to issue aadhaar numbers to individuals residing in India, besides certain other classes of individuals, the manner of their authentication and other related and incidental matters, the statement said.
The project will involve an expenditure of Rs.3,023.01 crore which includes a sum to fund the various components of the project by March 2011 and recurring establishment costs for the entire project phase of five years ending March 2014.
"The UID project is primarily aimed at ensuring inclusive growth by providing a form of identity to those who do not have any identity," the statement said, adding that it seeks to provide aadhaar numbers to the marginalised sections of society and thus would strengthen equity.
Apart from providing identity, the aadhaar number will enable better delivery of services and effective governance, the statement said.