Q.Two parallel run schemes of the Government, viz the Adhar card and NPR, one of voluntary and the other as compulsory, have led to debates at national levels and also litigations. On merits , discuss whether or not both schemes need to run concurrently. Analyse the potential of the schemes to achieve development benefits and equitable growth.

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Arguments in Favor of Running Both Schemes Concurrently

• Complementary Objectives: Aadhaar focuses primarily on welfare delivery by linking beneficiaries to schemes, whereas NPR provides a broader demographic and security database.
  • Example: NPR can assist in updating the Census, while Aadhaar ensures precise targeting of subsidies like PM-KISAN and PDS.
• Addressing Gaps in Each Scheme: Aadhaar does not capture detailed residency or family lineage, which NPR does.
  • Example: NPR can complement Aadhaar by verifying family linkages, ensuring more accurate social benefit distribution.
• Security and Governance: NPR helps identify illegal residents and strengthens internal security, while Aadhaar minimizes leakages in welfare programs.
• International Practices: Countries like the USA successfully run multiple parallel identity systems (e.g., Social Security Number and state-issued IDs) for different purposes, demonstrating the feasibility of concurrent systems.

Arguments Against Running Both Schemes Concurrently

• Duplication of Effort and Resources: Operating two massive identity databases increases administrative costs and public burden.
  • Example: Overlapping data collection for Aadhaar and NPR leads to redundancy.
• Confusion Among Citizens: The differing voluntary and mandatory statuses of the two schemes create public ambiguity and legal challenges.
  • Example: Privacy concerns regarding both databases have led to landmark litigations, such as the Aadhaar case (2018).
• Privacy and Data Protection Risks: Running parallel systems without a robust, comprehensive Data Protection Law heightens the risk of data misuse and breaches.
• Potential for Exclusion: The mandatory nature of NPR could lead to the exclusion of vulnerable groups who lack formal documentation, subsequently affecting their access to Aadhaar-linked welfare benefits.

Development Benefits and Potential for Equitable Growth

• Aadhaar:
  • Facilitates Direct Benefit Transfer (DBT), reducing leakages and corruption.
    • Example: Aadhaar-linked PDS saved ₹90,000 crore between 2014 and 2021 by eliminating ghost beneficiaries.
  • Enhances financial inclusion through the Aadhaar-enabled Payment System (AEPS).
• NPR:
  • Provides granular demographic data that aids in effective resource allocation and planning.
    • Example: NPR data can improve policymaking in areas like urban-rural migration, healthcare, and education.
• Combined Potential:
  • Integrating NPR and Aadhaar data can ensure superior targeting of government schemes, enhancing the efficacy of programs like Ayushman Bharat and PMAY.

Suggestions for Improvement

• Integration of Schemes: Align NPR and Aadhaar to avoid duplication, establishing clear boundaries and a unified data-sharing protocol.
• Strengthened Privacy Framework: Implement a robust Data Protection Law to safeguard citizen privacy across both systems.
• Public Awareness: Educate citizens on the distinct benefits and purposes of both schemes to minimize confusion.
• Inclusion Measures: Simplify NPR documentation requirements to prevent the exclusion of marginalized groups.