Nilekani is the current CEO of Infosys. He has already stated he is going to step down from Infosys before taking up the effort to create an India wide UID. Bidding for this mega project will be an international one, with some Israeli companies already showing interest (in addition to Indian majors like Infosys, TCS, Wipro...).

So the question is not as much as about conflict of interest as it is about the success of the project. This will be the third such attempt - Seshan's voter ID, the PAN card and now the UID.

From anti-corruption point of view, this is really going to be helpful. Any government aid etc can be tracked using the UID (i.e. to see who the beneficiary was). Currently a majority of such funds are eaten up by the politicians and bureaucrats. So perhaps that will get reduced. As a state, India is currently a failure: perhaps the UID will help make some ammends.

The implementation is going to be a challenge - currently there are options that are doing rounds: a smart card approach or using a mobile sim card (a govt reserved security domain in every sim card - the sim ID can act as a proxy for UID).