Germany will suspend the issuance of green cards for IT professionals beginning July 31. The German government began issuing 20,000 green cards a year in August 2000 to speed the processing of visa applications. The two-year program was extended one more year, but will end at the end of July.

The National Association of Software and Service Companies(Nasscom) said "renewal or extension of the existing policy would have been a positive step."

Prominent Indian companies with operations in Germany include Wipro, Satyam Computer Services, Tata Consultancy Services (TCS), Digital GlobalSoft and I-Flex. Given the U.S. economic slowdown and concerns here about war with Iraq, Germany's decision adds to the list of woes facing the country's software industry.

Green cards can be issued in less than two weeks. Standard work visas can take up to two months to process.

"It is unfortunate," said Wipro's Laxman Badiga. "The impact of stopping green cards is tremendous in terms of the time involved. In the software industry, everyday is important in terms of delivering customer satisfaction."

Wipro launched its German operations in Frankfurt in 2001, including IT and research and development contracts. About a 100 Wipro consultants work for German clients.

Of the 20,000 green gards made available last year, Nasscom said only 3,500 have been issued. "This very clearly explains that supply has been more than the demand," said Sangeeta Gupta, Nasscom's vice president.

Nasscom is lobbying to streamline visa procedures in response to the German decision in order to sidestep delays in traveling into Germany. Once the Germany economy rebounds, Nasscom said a new policy would be in place to speed up travel by visa holders to Germany.

India's biggest software exporter, TCS, said it is not worried about the German decision. "We do not foresee any adverse impact in meeting our customers commitments and future business potential," said N.G. Subramaniam, vice president of TCS' operations here.