It may pay to take the unique identity number (UID or Aadhaar), quite literally.

No, there isn't any free dole out of cash just for holding it. But if you have a cooking gas (LPG) connection, chances are that it may soon require a UID to get a refill and the cash subsidy to your bank directly.

All this isn't as complicated as it sounds. A background though may be useful.

Most fuel items such as diesel, kerosene and LPG are subsidised by the Government, that is, you don't pay the full price for it.

Now, there have been innumerable instances of lapses as well as diversions and the subsidy not reaching the intended beneficiary.

In order to streamline the process and plug leakages, the Government intends to link delivery of subsidised fuel, including LPG to the UID or Aadhaar number.

It has not been mandated in a full-fledged manner as yet.

A LPG cylinder currently costs Rs 790 in some cities.

Pilot study

It, however, is sold at a subsidised rate of Rs 415. Under the UID scenario, while you will be required to pay up the full amount for procuring a cylinder, the subsidy of Rs 375 would be transferred directly to your bank account.

So in effect, you would still be paying only Rs 415. Eventually, when the process is mandated by your cooking gas distributor, all refills will be linked to the UID. Else, you may not get your cylinder or may be forced to pay the full price for it.

In order to fine-tune this process, a pilot project is being run in Mysore. The city was chosen for pilot project involving Aadhaar-based LPG cylinder delivery as 90 per cent of the city already was enrolled with the UID authority.

Initial media reports suggest that the process has been quite smooth. The authorities have started off by transferring small sums (Rs 5-10) to check if the transfer goes through smoothly. Of course, there have been instances of clerical errors such as wrong data entry or wrong family details. But these are stray cases and may not be systemic.

The trial run is expected to be completed by April 30.

If the process is deemed successful, 50 districts will be targeted for such Aadhaar-based LPG delivery. So it may not be long before it becomes mandatory in your city.

The public sector oil marketing companies that sell you the LPG cylinders may then ask for your UID and savings bank account details.

There is a large registrar network that the UIDAI works with to enable enrolment. These include select branches of banks, post offices and a variety of other institutions. The UIDAI Web site ( uidai.gov.in ) gives you a detailed list of registrars. The enrolment form can also be downloaded from the website.

Enrolling for UID

All you need to do is to take a photograph, fill up a simple application form asking for basic details and address and submit supporting documents.

Your fingers are biometrically scanned, as is your iris.

You are thus ‘identified' by the data submitted. Once this is done, you can check the UIDAI Web site for the status of your application.

There have been concerns raised at many forums on the security and the reliability of the whole UID process.

But given that the Union Budget clearly indicates transfer of most subsidies, micropayments, pensions and the like would be linked to Aadhaar number, you may be better off having one.

ven@thehindu.co.in

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