Private Security Day: Private security industry demands hike in FDI limit to 74%

Currently, FDI in private security agencies is permitted only up to 49 per cent.

PTIUpdated: Sunday, December 04, 2022, 07:30 PM IST
article-image
Private Security Day: Private security industry demands hike in FDI limit to 74% | File Image

An association of private security services providers on Sunday demanded an increase in the foreign direct investment (FDI) limit in the sector to 74 per cent from the existing 49 per cent.

Raising the demand on the occasion of the Private Security Day, which was celebrated across the country on Sunday, the Chairman of the Central Association of Private Security Industry (CAPSI), Kunwar Vikram Singh, said in a statement that raising the FDI limit to 74 per cent will help modernise, digitise and propel the growth of the crucial sector which currently employs over one crore personnel.

Current FDI in private security agencies

Currently, FDI in private security agencies is permitted only up to 49 per cent.

"CAPSI has written to the Centre seeking amendments to the Private Security Agencies (Regulation) Act 2005 in view of the changing scenarios in the private security sector. Raising the FDI limit to 74 per cent is our key demand. We have also sought the constitution of a Regulatory Board at the Centre and state level comprising members from the government and the industry for better regulation of the sector," Singh added.

Model Rule 2020

The CAPSI chairman further noted that Model Rule 2020 was a welcome change which focussed on ease of doing business. However, a large number of states have not implemented Model Rules 2020.

Therefore, amendments in PSAR Act are urgently needed to bring more transparency, speed up the digitisation process and improve standards of ease of doing business, which will propel the growth of the Industry, he added.

Steps to strengthen the private sector

Stating that the private security sector plays a critical role in the safety and security of our country, Singh further said the Union Home Ministry has taken several keys steps to strengthen the private security sector which include the launch of a dedicated portal for the industry and setting up of the Crime and Criminal Tracking Network and Systems (CCTNS), but still much more needs to be done in view of the fast-changing security scenario in the country.

Today more and more sectors are engaging PSI which employs over one crore security professionals. Indian private security industry is the largest security industry in the world.

The focus of the government is on raising the standards of service delivery of private security. The government is outsourcing a lot of security tasks to the industry.

"We have already seen private security professionals being deployed even in sensitive areas like airports. The Bureau of Indian Standards (BIS) along with CAPSI are working on framing the standards for the industry. In view of all this the industry needs a more robust Act to regulate and propel the growth of our industry," the CAPSI chairman added.

Singh also said on the occasion of the Private Security Day, several private security personnel across the country were awarded for their exemplary services to the nation. CAPSI's state units organised various events in their respective states to celebrate the Private Security Day.

(If you have a story in and around Mumbai, you have our ears, be a citizen journalist and send us your story here. )

(To receive our E-paper on WhatsApp daily, please click here.  To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Earnings 2023 LIVE: Indigo net profit jumps to Rs 1,422.61 cr; Paytm's losses narrow down to Rs...

Earnings 2023 LIVE: Indigo net profit jumps to Rs 1,422.61 cr; Paytm's losses narrow down to Rs...

Tech layoffs: Apple CEO Tim Cook says job cuts will be last resort

Tech layoffs: Apple CEO Tim Cook says job cuts will be last resort

Vodafone-Idea AGR saga: A breakdown of dues and a complete timeline of the case

Vodafone-Idea AGR saga: A breakdown of dues and a complete timeline of the case

Government rescues Vodafone Idea, converts dues into 35% stake

Government rescues Vodafone Idea, converts dues into 35% stake

Another blow for Indian pharma, drug linked to vision loss in US recalled

Another blow for Indian pharma, drug linked to vision loss in US recalled