The first Unique Identification Card to citizens will roll out in 12-18 months.
The department of post has offered to include one-and-a-half-lakh post offices for this purpose initially.
The statement by Nandan Nilekani that the ambitious Unique Identification card will be for all residents of India including non-citizens on Friday triggered a controversy with the Bharatiya Janata Party demanding a statement from the government.
With work poised to begin on providing unique identification cards to all Indians, the ambitious project has already caught the attention in the US, with lawmakers asking the government why it could not implement a similar project here.
Lord Hanuman has managed to get an Aadhaar card made, but there are no takers for it.
Having made Aadhaar mandatory for receiving subsidised cooking gas (LPG) in 19 districts, Oil Minister M Veerappa Moily on Wednesday said the unique identification card will no longer be a must for giving subsidises unless cleared by the Supreme Court.
His colleague and Law & IT Minister Ravi Shankar Prasad said the court has held that the purpose of issuing Aadhaar to all Indian citizens is legitimate and no surveillance is possible.