NEW DELHI, November 15, 2013. Speaking on the procurement of firearms, Mr. K Vijay Kumar, Senior Security Adviser, Ministry of Home Affairs, Government of India, said that the government is yet to take a decision on allowing possession of firearms to the private guards. In the meantime, the use of non-lethal weapons by the private security personnel should be effectively deployed to tackle issues related to security.

 Mr. Kumar called for closer coordination between the private security industry and the government to ensure that breaches in the security framework. He suggested that the two agencies should work in tandem and bridge the gaps to increase effectiveness and efficiency.

 Though the private security agencies find themselves at times in financial constraints, Mr. Kumar said, they should never compromise when hiring a trainer for the agency. He added, �Choose the trainers with extreme care.� 

 These views were shared by Mr. Kumar at FICCI�s first edition of �Private Security Industry Conclave (PSIC) 2013� conference on the theme �Policy Change for Sustainable Future� here today. FICCI has taken the initiative to represent the private security industry in India. The committee has a full-fledged agenda, formulated through discussions with key industry stakeholders. The main focus of the committee is to remove functional and policy related impediments that have hampered growth potential of the industry.

 The FICCI committee plans to gather consensus for the amendments in the PSAR Act 2005, to further boost the growth of the private security industry in the country. FICCI is also advocating for categorization of private security guards as skilled and highly-skilled workers under the Minimum Wage Act, and has already made representations to the government regarding the same.

 Mr. Deep Chand, Former Special Commissioner, Delhi Police and Advisor FICCI-CASCADE, suggested that the private security industry should follow PSARA ACT 2005, train its manpower according to the prescribed standards mentioned in PSARA, salaries and wages of the personnel must be transferred through banks, conducive working environment must be provided to the personnel and the agency must look after the welfare needs of the personnel.

 In his presentation, Mr. Amitabh Jhingan, Partner, Ernst & Young LLP, highlighted the key challenges which the sector faces such as lack of quality manpower, high attrition rates, compliance requirements and ability to acquire firearms.

 He proposed some key regulatory reforms such as ability to procure and store firearms, lack of standards for cash services, FDI limit in security services, Enforcement activities by manned guards and categorization of security personnel as skilled workers.

 Mr. Kunwar Vikram Singh, Chairman, CAPSI, said that the crime rate of India� private security industry is one of the lowest in the world at 1.28%. He is of the opinion that the industry has substantial policies, it is just the mindset which needs reconditioning when it comes to how should we treat our security personnel.

 He urged the industry to equip itself, follow compliance, train the guards and invest in their well being which will open new doors for them not just domestically but internationally. Mr. Singh also lauded the government�s decision of setting up of Sector Skill Council where for the first time occupational standards have been laid down and the training process has been well defined.   

 Ms. Manjari Jaruhar, Chair, FICCI Committee on Private Security Industry and Former Special DG, CISF, said, �The sheer size of the industry is its strength. The private security guards outnumber the police forces. The ratio of private security personnel to police in India is 2:1 and will soon reach 3:1. The government should consider utilizing the force as an extended arm for enforcement agencies. It may be considered to outsource non-critical activities of policing at the moment.�

 She stated, �Manned security companies however, need to rework their business models and market approach to partner with other industry sectors. In fact there is an urgent need to redesign the value creation process to accommodate technological innovations.�

 Mr. Rituraj Sinha, Co-chair, FICCI Committee on Private Security Industry and Group COO, SIS India Ltd., said, �Private Security sector plays a vital role in the homeland security framework. Market size is estimated to cross US$ 10 billion in the next five years. The sector has also emerged as one of the top job creators with over 50 lakh employee base. Private Security sector needs proactive engagement with governing ministries and a conducive policy framework to realize its full potential.�

 Mr. Mel Brooks, CEO, G4S India, said, �Indian Private Security Industry estimated worth over US$ 1-9 billion growing at 18 per cent between 2012-2015. The sector comprises approximately 15,000 Indian Private Security companies out of which only 20-25% are in the organized sector. Currently there are over 7.5 million security guards across the country. These numbers indicate the size and potential of the sector. Exponential growth in several key sectors like  retail, IT, telecom, real estate, Infrastructure, financial services amongst others has resulted in growing demand for the services of private security agencies which is a good sign for the sector.�

 He said, �Several policy level interventions would be required to provide a fillip to the sector. While globally economies are opening up and welcoming FDI by relaxing norms, in India, in the security sector, the Government has reduced FDI from the earlier 100 % to current 49% by introducing PSARA. While PSAR Act is needed to regulate the sector, amendments conducive to industry & investment are required to make the act beneficial for all entities. Mr. Brooks added, �Seminars such as this and intervention by industry association like FICCI will definitely help in taking the sector demands to the decision makers. And I welcome this initiative.�

 On the occasion, Maj. Manjit Rajain, Executive Chairman, Peregrine Guarding Pvt. Ltd., said, �This is a wonderful initiative by FICCI where government and private bodies have come together to discuss the need to bring security guards under skilled and highly skilled categories. This job is not like any other occupation. It requires skill and expertise that these guards are highly trained to execute. We are very hopeful that post this conclave government will definitely give due consideration and bring in suitable policy where private security guard will be considered in a totally fresh category which is not aligned to the minimum wages. This will not only give new recognition to them but also bring new lease of life to their families, which is the need of the hour.�

During the conference, a FICCI-EY report on �Private Security Industry� was also released. The report is an attempt to address various issues and key drivers of the private security industry. The information presented in this report will serve as a valuable reference to all stakeholders.

 The private security industry in India is estimated to be Rs. 350 billion, operating across 550 districts, directly employing more than 60 lakh individuals, notably finding traction from the youth population of the BPL category as an employment opportunity. This is indeed a sunrise sector, with potential to be the second-largest employment generator and a major source of revenue for the exchequer by way of taxes. India is estimated to be amongst the top 10 security markets in the world by 2020, which leads to significant opportunities to be leveraged. Besides adding to the economy, it has the potential to become an extended arm of law enforcement authorities.

 The global private security services industry is estimated to be US$132 billion in 2011 and is expected to grow at a CAGR of 7% to reach US$220 billion by 2019. However, the Indian private security services industry is expected to grow much faster, at 20% over the next few years, and is estimated to grow from Rs. 365 billion in FY13 to Rs. 640 billion by FY18. Globally, and in India, manned guarding is the key segment in private security services space followed by cash services.