An association of private security services providers on Sunday demanded an increase in the foreign direct investment (FDI) limit in the sector to 74 percent from the existing 49 percent.
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 percent will help modernise, digitise and propel the growth of the crucial sector which currently employs over one crore personnel.
Currently, FDI in private security agencies is permitted only up to 49 percent.
"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 percent 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.
The CAPSI chairman further noted that Model Rule 2020 was a welcome change that focused 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.
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.
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