New Delhi, June 25 2009: Nandan Nilekani resigned as Co-Chairman of Infosys Technologies and its board on Thursday, following his appointment as Chairman of an IT-driven Government program for providing unique identification numbers to citizens of the country.

"The Board of Directors at Infosys has already accepted Nilekani's resignation.

The resignation would be effective from July 9, 2009," said the company.

Nilekani will take charge as Chairman of the Unique Identification Authority of India with the rank of Cabinet Minister.

As co-founder of India's second-largest software exporting firm, Nilekani served as director on the Infosys board since its inception in 1981. Between March 2002 and June 2007, he served as the company's chief executive officer and managing director.

He was later re-designated as Co-Chairman of the Board of Directors.

"We are glad that an extraordinary individual like Nandan has got an opportunity to add value to India through this position.

As a company that has always put the interest of society ahead of itself, Infosys will accept his absence with a sense of duty to a larger cause," Infosys Chairman and Mentor N R Narayana Murthy said.

Nilekani, born in Sirsi in Uttara Kannada in northern Karnataka, did his early education in Bangalore and Dharwad before moving to Mumbai to study Electrical Engineering in IIT, Bombay.

The PMO said the functioning of the authority and activities to be performed by the UIA would serve multiple objectives.

The authority shall have the responsibility to lay down plans and policies to implement the unique identification scheme in the country.

It shall own and operate the unique identification number database and be responsible for its updation and maintenance on an ongoing basis.

Sonia said the Authority shall have responsibility to lay down plans and policies to implement the Unique Identification Scheme (UID), shall own and operate the Unique Identification number database and be responsible for its updation and maintenance on an ongoing basis," Soni said.

The Authority will identify the targeted groups for various flagship programmes, she added.

The flagship schemes of the UPA include the National Rural Employment Guarantee Scheme, Sarva Shiksha Abhiyaan, National Rural Health Mission and Bharat Nirman.

The unique identification number would ensure that any lacuna in these schemes is removed so that the benefits do not reach those they are not meant for.

The Government had earmarked Rs 100 crore in the interim Budget presented by Finance Minister Pranab Mukherjee in Parliament on February 16 to kickstart its ambitious Unique Identification Project.

The government has been working on improving arrangements to ensure that development deliverables reach the intended beneficiaries, Mukherjee had said.

In order to do so efficiently, effectively and economically, a comprehensive system of unique identity had been worked out, he had added.

The Government also plans to set up state units of UIDAI, headed by state UID Commissioners.

Earlier, an Empowered Group of Ministers had approved setting up UIDAI with an initial core team in November 2008 .

Meanwhile, HR director of Infosys, Maohandas Pai said that Nilekani's exit will be a personal loss for the company.

"So long as he works for the Government of India, there will no role for him here, as there can't be a conflict of interest, in the sense that if you work for the Government of India full time, working for a private company is just not done, that is what Nandan also said very clearly and the company agrees with him," he said.

Since Nadan is heading this project, there will be conceptual clarity, at the top level because he can conceptualise and visualise and can create the collateral with whatever team he gets in the Government of India.

So that a large part of the thinking work will be done.

So you may not require consultants to think for which you would need otherwise if you were not an IT person of the stature of Nandan," he added.

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