As per the MoU, oil marketing companies IOCL, BPCL and HPCL will act as registrars for the UIDAI on behalf of the ministry for implementation of the project.

The 12-digit unique number that the UIDAI will generate will be combined with the the smart card project of the Oil Ministry for distribution of PDS kerosene and domestic LPG through biometric identification of beneficiaries.

"This would help in accurately identifying users and beneficiaries of the services rendered by the three oil firms and have uniform standard and process for their verification and identification," a senior official of the ministry said.

UIDAI Chiraman Nandan Nilekani said Rs 50 will be given to the oil companies for every enrollment done.

At present, there are more than 11.5 crore LPG customers in the country and it is envisioned that by the year 2015, there would be 16 crore LPG customers.

"This partnership is something we are looking forward, which will help in de-duplication and authentication," Nilekani said, adding that the focus would be on BPL families and village communities.

The ministry said the de-duplication process and the online authentication that the UIDAI offers will enhance the efficiency of oil companies in delivering services to the increasing customer base.

"The biometric smart card-based distribution of PDS SKO (superior kerosene oil) and LPG pilot project will be executed along with the state government of Andhra Pradesh. The initial pilots would be held in the city of Hyderabad, Mysore and Tumkur. Selected blocks in the city of Pune are also proposed to be covered under the pilot," it said.

The MoU was signed by Apurva Chandra, Joint Secretary in the Oil Ministry, and K Ganga, Deputy Director General, UIDAI. Present on the occasion were Oil Minister Murli Deora, Nilekani and Minister of State for Oil Jitin Prasada, besides other senior officers.