The number of H1-B visas issued to workers in the technology industry in the United States dropped nearly 75 per cent from 2001 to 2002, according to a new Department of Homeland Security report.

The H1-B visa programme, which allows foreigners to work in the United States for up to six years, enabled thousands of Indians to take up well-paying jobs in the high-tech sector in the country, especially in the Silicon Valley.

The number of H1-B visas for initial employment in technology industries fell from 105,692 in 2001 to 27,199 in 2002, the San Jose Mercury News quoting the report said on Friday.

The percentage of all H1-B visas issued to technical workers also declined, from 52.5 per cent in 2001 to 26.3 per cent in 2002, it said.

The news comes as the annual limit on the number of visas is set to be lowered on October 1.

The programme has attracted much criticism in the current economic environment with high unemployment rates with opponents arguing that US workers had lost jobs because companies were hiring less-expensive foreign workers.

The paper said that Intel saw a 60 per cent drop from 2000 to 2002 in the number of new H1-B visa workers it sponsored.

Tracy Koon, director of corporate affairs, Intel, said that the decline was due to the economic slowdown, adding that Intel used H1-B visas to hire scientists with master's degrees and doctorates. "Our hiring is down, period, across the board."

American Electronics Association (AeA), a trade group representing the high-tech industry that has advocated a higher H1-B cap, has welcomed the report's findings, saying it shows that the programme is not being abused.

"These numbers show that the decline in the use of H1-B visas paralleled the economic conditions of the high-tech sector. As the economy slowed down, the high-tech industry dramatically scaled back its use of the H1-B visa programme," William T. Archey, president and CEO, AeA, stated.

The question of whether the programme is working as intended is important because the expansion of it that the Congress enacted in 2000 is about to expire.

Unless Congress acts, the annual limit on H1-B visas will drop to 65,000 as of October 1, the beginning of the government's fiscal year.

For the past three years, the cap has been 195,000. A $1,000 fee for each visa that was used to fund training programs for US workers will also expire on October 1.

Supporters of raising the cap argue that an improving economy will be hurt by restrictions. An estimated 20,000 of next year's visas are already in the approval process.