[I. Would it be available also for the recipients of "social welfare"
measures at the POS?
Apparently, that's nowhere on the agenda.

ll. Is it a move towards making Aadhaar data available to private entities,
which the Supreme Court has now barred?
On the face of it, it is: <<The government hopes reliability of offline
Aadhaar KYC will make it popular and also provide options to fintech firms
that are disadvantaged by being denied access to UIDAI authentication.>>

These are two salient issues.

Good that the issues of "surveillance state"  and "data mining" have, by
now, attained a much wider reach.]

https://timesofindia.indiatimes.com/india/now-govt-pushes-offline-tools-to-verify-aadhaar/articleshow/66046671.cms

Now, govt pushes offline tools to verify Aadhaar

Snipped

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