IT-ITeS industry, which was has drawn a blank in the Budget, takes some solace in a few announcements that hint at significant increase in IT consumption in the country.

Mr Pranab Mukherjee, Finance Minister, has allocated Rs 14,232 crore to UIDAI (Unique Identification Authority of India).

The Aadhaar platform will be used to support the payments of NREGA (National Rural Employment Guarantee Scheme), old age, widow and disability pensions; and scholarships directly to the beneficiary accounts in selected areas. After successfully using Aadhaar platform to validate PDS ration cards in Jharkhand, the Government proposes to build a Public Distribution System (PDS) Network using the platform.

A National Information Utility for the computerisation of PDS too is being created. It will become operational by December 2012. The increase in outlay for e-governance projects from Rs 311 crore last year to Rs 867 crore would help the IT industry.

“These will help increase IT consumption. It will result in incremental growth in domestic IT industry,” Mr S. Mahalnigam, Chief Financial Officer of TCS, said. The move to mandate electronic voting facility to facilitate wider shareholder participation when companies take important decisions too would benefit niche IT solutions companies that are offering corporate compliance solutions.

Mr L. Suresh, President of ITsAP (IT-ITES Industry Association of Andhra Pradesh), said these initiatives would help only a segment of the IT-ITeS industry.

Mr Uday Sodhi, Chief Executive Officer of HeadHonchos.com, said impetus to Aadhaar project and other e-governance projects would mean generation of more jobs in companies that served these business areas.

> kurmanath@thehindu.co.in

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