Sources said the Y2K problem was being addressed for the entire hardware, operating system, applications software and interfaced peripherals used by the department.

The solution involves implementation, test runs and monitoring, certification of Y2K compliance and a contingency plan for crisis management. Sources added that the department has identified the extent of the Y2K problem and is implementing the solution options and testing systems for compliance.

It is estimated that the department would be required to spend at least Rs 70 lakh on upgradation of hardware alone to make it Y2K compliant.

Thedepartment has also drawn up an elaborate action plan to ensure Y2K compliance by the September deadline. This includes a mandatory "I am Y2K OK" label on new procurement of hardware and software. In addition, it is installing a Y2K compliance hardware card, called "Y2K Pass" which is estimated to cost about Rs 3,500 per piece on machines with 286 and 486 processors.

The postal department has over 4,200 computers of various configurations, ranging from pre-XTs to Pentium, installed at locations spread across the country to carry out a multitude of functions. Besides, another lot of over 1,000 Pentium 333 machines compliant for the millennium problem have been ordered.

The department employs these machines for running applications in areas like PC-based multi-purpose counter machines, post office saving bank, postal life insurance, money transfer, mail transmission, connectivity for data transmission (line transit mail office, computerised registration centre, track and trace, booking and delivery system)and customer care centre.

A breakdown in the system could bring most of the services rendered by the department to a grinding halt.

The postal department has found that the 286- and 486-based computers numbering 2,000 units are partially compliant and therefore could be upgraded by installing the Y2K Pass. The machines acquired subsequently -- the Pentium-based computers -- are compliant according to tests run so far. The machines belonging to the pre-286 generations are almost out of use and are therefore not the focus of implementation of the programme.

The software being used includes Windows 95 and other applications developed in the windows environment have been found to be compliant. Other application, particularly those based on the Unix/Oracle are being attended to by the National Infomatics Centre of the Department for Y2K compliance.

The peripherals being tested for Y2K compliance include electronic franking machines, weighing scales, scanners and printers.

Contingency measures in areaswhich fall short of the targeted time frame are being discussed in the standing committee on technology which is currently addressing the Y2K problem, sources said.