NASSCOM is all set to take up with the Union government the issue of non-payment to companies partnering the governments in e-governance initiatives.

Talking to The Hindu on the sidelines of the 17th National Conference on e-Governance here on Thursday, NASSCOM president R. Chandrasekhar said the industrial body was about to raise the issue formally since it was not restricted to a particular department or government but is happening at so many different places across the country.

“There are a lot of projects where companies have put in a lot of resources and we are not talking here about multibillion dollar companies but small and medium companies. They put in a lot of energy and efforts and at a certain point when the payments are not coming in they are in extreme distress,” he said.

The conditions of the contract state that payment will be made only when the project is fully completed. “The need is for a reasonable outlook and the government needs to help the industry so that the partnership with the industry can continue,” said Mr. Chandrasekhar.

“Since e-governance projects are complex service procurements, some problems will definitely arise. It is impossible to envisage every detail before hand. Often there are new requirements and demands from the government. These issues cannot be settled by looking at them from the point of view of a contract for procurement of equipment.”

Mr. Chandrasekhar said that there has been an upward swing for the IT industry in the last couple of quarters. Most of companies have been reporting an increase in revenue though not a dramatic increase but a steady one. He felt that the trend was likely to continue and companies could look at the forthcoming financial year positively.

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