Biometrics: The changing face of public services

HYDERABAD, India, Dec 05, 2007 (The Economic Times - McClatchy-Tribune Information Services via COMTEX) -- IFCPF | charts | news | PowerRating -- The city-based Goldstone Technologies, which acquired a 51 percent stake in 4G Informatics, has emerged as the lowest bidder for the finance ministry's global tender for the bio-metric permanent account number (PAN) cards in the country, according to NK Rawal, group CEO of Goldstone Group.

The plan to introduce biometric PAN cards has been in the works for the last two years as the government is keen on eventually tracking all financial transactions of an individual -- irrespective of the value to a PAN. This will enable authorities to check for any tax evasion.

"The introduction of biometric PAN cards is a major project, expected to span about 10 years and is worth several hundred crore. The finance ministry will use a combination of biometric technologies, including iris scan and facial detailing, to avoid duplication and other forgeries related to PAN cards," he said.

According to him, the technical evaluation of the project is complete. The project is expected to be awarded in the fourth quarter of this fiscal. "In future, the project may also be extended to convert the existing PAN cards into the new format," he said.

In fact, Goldstone got a headstart in the biometric segment after it acquired a 51 percent stake in 4G Informatics. It has the leeway to increase its stake to around 76 percent in future. So, it is now looking at leveraging on the acquisition to bag government orders such as biometric PAN cards.

The company is also eyeing another deal from the Ministry of External Affairs (MEA) to use biometric solutions to control terrorist activities across the border. "The MEA is planning to use biometric solutions including iris scanning to monitor the flow of people across the border. The project is worth over Rs 50 crore and the bids are expected to come up next fiscal. The pilot project is likely to be implemented at the Bangladesh border," said Rawal.

Besides, it is also implementing a pilot project for MEA to provide e-passports for diplomats. 4G Informatics has exclusive licensing agreements with US-based L-1 and Japan-based NEC for biometric solutions, including iris technology, finger printing and facial detailing.

"This will help us grab a major share of the Indian biometric market, which is expected to grow to over Rs 5,000 crore in three years. L-1 and NEC controls about 85 percent of the global market," Goldstone Technologies managing director & CEO Travis Caddell told ET.

The company expects to increase its revenues from Rs 97 crore to Rs 1,000 crore by 2011, of which biometric segment will be the major contributor.

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