Y2K compliance picks up speed: NASSCOM

NEW DELHI, August 20 : India is now in a much better

position to avoid the Year 2000 (Y2K) bug, than was the case just a few months ago. This

has been the findings of Nassom (National Association of Software and Service Companies)

in its ongoing survey on level of Y2K (year 2000 date problem) preparedness in India.

However, Nasscom points out that in spite of the best efforts of many in government and

industry, there are no guarantees with the Year 2000 problem. Nasscom President Dewang

Mehta said, "It is essential to understand that not every computer will be fixed and

some of those that have been remedied and tested could still experience problems. Our

primary challenge in the less than 133 days that remain, is to focus on those areas where

the highest probability for failures exists and to ensure that all organizations have

contingency or backup plans to handle any difficulties."

The scope of Nasscom’s survey is primarily focussed at

determining the level of Y2K preparedness in various sectors in India; expected period of

achieving Y2K compliance; preparation of post-Y2K contingency plans; and initiatives

required to provide factual information to international communities of India’s Y2K

preparedness. Mr. Mehta said, "Based on facts reported to us and as per our on-going

survey, we believe that January 1, 2000, will pass with decidedly and relatively less

business disruption than is anticipated in some circles."

Nasscom’s on-going survey on Y2K preparedness in India

has evaluated reports and responses from various Departments / Ministries of Central

Government, State Governments, Municipalities, amongst others.

Banks



Reserve Bank of India has stated that as on 31 July 1999, 92% banks in India were
Y2K compliant. Further, as per the survey, it is expected that 97% of banks in India will

achieve Y2K compliance by 30 September 1999.

Mr. Mehta said, "India’s banking sector has made

commendable strides in addressing Y2K problem. So much so that central banks in other

countries are now approaching Indian banks and software companies to assist their

constituents with achieving Y2K compliance."

Telecom



Commenting on the state of preparedness in telecom sector, Mr. Mehta said,
"Nasscom’s survey has revealed that Indian telecom services are reaching a

fairly good state of Y2K compliance. This has been especially facilitated by devolving

authority to respective telecom circles."

Videsh Sanchar Nigam Limited (VSNL) and Software Technology

Parks of India (STPI) offer high-speed datacom links to software companies to software

exports. Those links are used by Indian software exports industry for delivering software

to overseas customers. Lately, many of the clients of Indian software industry have

expressed concern over Y2K compliance of high-speed links from India. Mr. Mehta said,

"We have urged DoT, VSNL, MTNL and STPI to provide written assurances to Indian

software companies on Y2K compliance of high-speed datacom links so that software exports

are not adversely affected."

Power



According to Mr. Mehta , "As per information received at NIC, it is interesting to
note that out of 315 power generation stations, about 220 are based on analogue systems in

India. Thus, only 95 stations have varying levels of computerization. Out of this, only

about 50 are reported to be online. It is also reported that 18 out of these 50 are

already Y2K compliant and the remaining 32 are at varying degrees of compliance." It

has also been reported that the 45 of the non-online power stations are also reaching good

levels of Y2K compliance. Thus, now the concentration is to make about 32-45 of the total

of 315 power generating stations to be Y2K compliant

Railways



Mr. Mehta said, "We are glad that Chairman of the Railway Board is directly
monitoring Y2K compliance progress in the sector." He further added, "Indian

Railways have indicated that they would adhere to their deadline of 30 September 1999 for

Y2K compliance."

Aviation



The Ministry of Civil Aviation and Airports Authority of India has set up a rigorous
schedule for airports and air traffic control signals to achieve Y2K compliance well

before the deadline. Most of the airlines, including state owned ones, have already

declared themselves to be free from Y2K bug.

Oil & Petroleum



Companies involved in the production, refining, processing, transportation and
distribution of oil and natural gas continue to make significant progress with their

efforts to remediate and test mission critical systems. Mr. Mehta said, "As per

responses received by us, one does not expect any major impact on availability and usage

of natural energy products in India. It is expected that by 30 September 1999, the public

sector organizations in this area would be Y2K compliant."

Satellites



Mr. Dewang Mehta said that , Nasscom has been informed that Indian satellites have been
made Y2K compliant and that no disruption in services are expected either on 21 August

1999 or due to Y2K.

Businesses: SME



Nasscom survey also revealed some statistics on status of Y2K compliance in various
segments of industry in India. The survey indicated that almost 100% of respondents in

large-scale enterprises have confirmed their awareness about Y2K problem. Nasscom survey

agreed with National Y2K Action Force of India, that not only the awareness levels but

even Y2K compliance is much higher in large organizations than their counterparts in

SMEs.

Mr. Mehta added, "In middle scale enterprises, the indicators have started building

some confidence, with more than 60% respondents saying that they have already some form of

Y2K compliance program in place." However, Mr. Mehta said, "The small scale

industries may prove to be an area of concern with about 55% showing awareness about the

Y2K problem."

Exporters



The international business community is concerned about Y2K compliance in various
countries. Else their supply chains may get adversely affected if their suppliers are not

Y2K compliant in developed and developing nations.

The survey amongst exporters has revealed almost 100%

awareness in all exporters who use computers about Y2K compliance. Out of 280 exporters

who have responded to survey, almost 45% have not only achieved Y2K compliance but have

also tested the systems. About 80% are expected to become Y2K compliant by October 1999.