Minister of State (I/C) for Labour and Employment Santosh Kumar Gangwar said that Private Security Industry is among one of the five top most employment generating sectors in the country while addressing Private Security Industry Conclave organized by FICCI. Approximately 50 lakh security personnels are safeguarding our Factories, Banks, Offices and Apartments and doing great service to the nation.He further said that with the passage of Code on Wages by Parliament on August 02, 2019, Central Government has given the right of minimum wages to approximately 50 crore unorganized sector workers and the same will be applicable to security guards also. Wages of security guards vary from Rs. 5,000 to 13,000 in various states. To do away with these discrepancies, we have made provision of National Minimum floor wage and no State Government can fix the wages below this floor wage.Shri Gangwar said that Occupational Safety, Health and Working Condition Code have been introduced in Lok Sabha on July 23, 2019 to improve working conditions and safety of the employees. We have also launched Pradhan Mantri Shram Yogi Maan Dhan (PMSYM) Scheme to bring all the workers under the cover of Social Security. With a monthly contribution of Rs. 55 to Rs. 200, workers can get a monthly pension of Rs. 3,000 after attaining the age of 60 years. The Minister appealed all the employers of the security agencies to motivate security guards to take benefit from PMSYM. He assured that Central Government is working on the principle of ‘Minimum Government, Maximum Governance’ and we are using technology to make life easy for everyone. Steps to promote single license, single registration and single return in place of multiple license, registration and returns will definitely promote ‘Ease of Living’ and ‘Ease of doing Business’.

‘Private Security Industry Conclave (PSIC), organised by FICCI on Sunday, when as many as 17 security guard agencies came forward and together committed to training over 300,000 security guards under the government’s ‘Recognition of Prior Learning’ (RPL) scheme in the first go. MDs and CEOs of companies such as SIS, G4S, Peregrine, Checkmate, NISA, SMS Security, Orion, Terrier, Raxa-GMR etc inked MoUs with the Management and Entrepreneurship & Professional Skills Council (MEPSC).

Skill Development and Entrepreneurship Minister Dharmendra Pradhan has said that industry must partner with the government in skilling, reskilling and upskilling of the workforce in order to meet the challenges of new RPL 4.0 (Recognition of Prior Learning). At the ‘Private Security Industry Conclave (PSIC) 2018, organised by FICCI, with the theme Job Creation and Skill Development recently, Pradhan elaborated, “We need to make the economy more formal. In other developed countries skilling, reskilling and upskilling is the work of the industry and for this Government is partnering with the private sector. Government has shown conviction in the industry and has changed the policy to RPL 4.0.” He also added that there is need to increase the employable workforce in the country and bring them under the skilling ecosystem. RPL is a platform to provide recognition to the informal learning or learning through work to get equal acceptance as the formal levels of education. The RPL process would include a pre-assessment, skill gap training and final assessment leading to certification of existing skills in an individual. The RPL certification would be at par with the certifications following various skill trainings in the country. Industry commits to train and certify 3.17 Lakhs security personnel under RPL in security sector; 17 MoUs were signed in this regard, between MEPSC and private security companies.

The Rs 40,000-crore private security business is witnessing a boom over increased threat perceptions from extortionists, terrorists and environmental activists.

The attack on Aurobindo Pharma Vice-Chairman K Reddy in Hyderabad could have been avoided if he had proper security, backed by the local police, say experts.

While most business houses have arranged for their own security, Reliance Industries Chairman Mukesh Ambani has cover from the Central Reserve Police Force (CRPF), which costs him about Rs 15 lakh a month.

Ambani and his immediate family members and the company's senior executives also have own private security teams which follow them when they go out in the city.

Ambani was provided round-the-clock protection by 28 CRPF commandos last April, following a threatening letter from terrorist outfits. Security for the Ruia-owned Essar Group headquarters and the Aditya Birla Group's headquarters in central Mumbai was recently increased after Greenpeace activists climbed Essar's headquarters to protest against damage to the Mahan forests in Madhya Pradesh by the group's power plant.

One of the biggest clients for private security is the cash logistics business, which deals with the movement and storage of currency notes and other valuables on behalf of banks. This business employs about 40,000 people and caters to approximately 80,000 automated teller machines for cash replenishment services.

Around 6,000 vans across the country carry Rs 15,000 crore of cash every day.

This business also holds Rs 4,000 crore of cash overnight in vaults on behalf of banks. Seven private companies account for 95 per cent share of the cash logistics business, says a FICCI study.

After the terrorist attacks in Mumbai in 2008, most business installations, including five-star hotels, have increased their security but experts say the cover is still not enough to prevent an attack.

Police officials say the real estate sector and the movie industry is prone to extortion from the underworld.

A police official said almost all top businessmen in Mumbai, builders and Bollywood celebrities had applied for police protection.

Brushing aside Chinese objections over India’s plan to construct a road along the McMahon line, union minister of state for home Kiren Rijiju on Saturday said India has every right to undertake infrastructure projects in its territory and no one can stop it.

“We will do certain infrastructural activities which have not been done in the last 60 years. The Chinese should not have a problem with my statement... They cannot stop me from doing my work,” said Rijiju on the sidelines of a function on private security industry organised by the FICCI.

China had reacted sharply to a statement by Rijiju that India was planning to construct a road along the international boundary from Mago-Thingbu in Tawang to Vijaynagar in Arunachal Pradesh to match China’s road infrastructure across the McMahon Line. A Chinese foreign ministry spokesman had said India should not carry out any action that may complicate the situation.

“I didn’t say that we are going to do anything on their territory. I am an MP from Arunachal Pradesh. I am constitutionally elected and I have the constitutional right and obligation to do whatever is right in our territory. I am looking at border management also,” he said.

Asked about China’s plans to construct a railway line across the McMahon line, the Union minister said it was nothing new.

India’s 50 lakh private security guards may man corporate offices and malls all over, but almost all of them are barely trained, unarmed and of little use in emergencies. Coach these 50 lakh to act as ‘eyes and ears’ of India’s 15 lakh police personnel and, may be, allow private security guards to carry arms.

That’s the home ministry’s ambitious plan, make private security, post-training, a force multiplier for cops.

India has only 50% of the number of policemen it needs to serve 1.2 billion citizens. The private security industry, despite its generally poorly trained men, is worth .` 22,000 crore and is expected, according to a FICCI study, to grow to .` 40,000 crore by next year.

“Police can coach private security guards…police will also sensitise them to spotting threats in typically crowded areas…guards standing at shopping malls and ATMs can also act as intelligence gatherers… criminals tend to drop their guard at such places …especially when they see cops in khaki are not present,” a top ministry official told ET. Elaborating on the plan, the official added, “If a police station has 100 cops, it will have at least 500 private security guards working in the area under its jurisdiction…if guards are coached by the police…especially before a festive season…this can be a big help”.

The ministry official, who spoke on the condition he not be identified, said the plan was at an early stage but was a “serious proposal”. The ministry, ET has learnt, may also consider a longstanding demand from private security agencies that they be allowed to possess arms licences.

Security agencies have argued that urban environment threats are now serious and frequent enough for the government to amend its earlier position. Another government concern is unregistered private security agencies handling cash management — the ministry plans to launch mandatory registration for all security agencies.

Agencies have asked for rules that allow arms licences with built-in accountability clauses for licence-holders. Home ministry officials told ET the demand is being “closely examined”.

Armed personnel in private security agencies are now restricted to employees who possess individual arms licences. This severely restricts effective security provision, agencies have argued.

Some of the broader issues concerning private security agencies will be discussed at a FICCI seminar on Saturday. Minister of State for Home Affairs Kiren Rijiju is the chief guest, and FICCI has communicated the private security agency sector’s demands to the government.

The industry chamber has argued that in view of the spread of MNCs in India, the demand for better-trained and better-equipped private security far outstrips supply and that quick official remedial action was needed.

Tackling the problem of unregistered security agencies is urgent, ministry officials said, because three-quarters of agencies are not registered despite a decade-old central law on private security making registration mandatory.

The law was passed during UPA’s tenure but follow-up action has been weak, officials said. The ministry plans to “aggressively” get the registration process going, an official said. An added impetus to registration is criminal behavior by guards employed by small-time agencies. Rape and ATM cash theft are among crimes that have been committed by private security guards. The second issue is pay. Trained private security guards, especially those who are also armed, cannot be paid unskilled workers’ wages, which is typically the case now. Re-designating private security guards as skilled workers will set a floor to their wages and align compensation with expected service quality, FICCI argues.

A committee set up by the Indian Banks' Association (IBA) has recommended several steps to improve security at ATMs, which, if the central bank accepts them, should make ATM transactions safer but may increase the cost for customers.

One of the key suggestions is to set benchmarks for companies that carry cash from banks for replenishing ATMs. The committee has recommended a minimum net worth of Rs 5-10 crore for such cash-management companies. The IBA has yet to finalise the committee's report, but will submit it to the RBI in 7-10 days, Mohan Tanksale, chief executive at the association, told ET.

"The aim is to bring more uniformity to the sector while setting certain benchmarks, which will ensure entry of only standard players in the industry," he said without disclosing details of the report. Setting stringent rules is likely to weed out non-serious and inefficient operators from the segment, which however could reduce competition and increase the fees that cash-management companies charge. The committee was set up after a woman was brutally attacked inside a secluded Bangalore ATM in November.

That attack led the Karnataka government to order banks to provide security guards at all ATMs in the state. There had also been other incidents of crime inside ATMs and attacks on vehicles of cash-management companies. Members from the Cash Logistics Association, Managed Service Providers and IBA were part of the committee.

The committee has recommended a grading system for cash-management companies. They will be rated based on their net worth, said two people with the direct knowledge of the matter. It has prepared the report primarily under five sub-heads: guidelines for infrastructure and operating practices for cash logistics, financial worthiness of cash logistics operators, provision of arms licences, accreditation and compliance system of cash logistic operators and guidelines for risk mitigatation and safety norms.

Under its recommendations, security guards at ATMs may be allowed to hold gun licences. Loading cash into ATMs may also be barred after 8 pm. "Clarity on operating standards shall ensure mitigation of risks significantly, pushing operators to work towards safer and more efficient operations for banking sector," said Rituraj Sinha, co-chair of the FICCI Private Security Sector Committee.

A committee set up by the Indian Banks' Association (IBA) has recommended several steps to improve security at ATMs, which, if the central bank accepts them, should make ATM transactions safer but may increase the cost for customers.

One of the key suggestions is to set benchmarks for companies that carry cash from banks for replenishing ATMs. The committee has recommended a minimum net worth of Rs 5-10 crore for such cash-management companies. The IBA has yet to finalise the committee's report, but will submit it to the RBI in 7-10 days, Mohan Tanksale, chief executive at the association, told ET.

"The aim is to bring more uniformity to the sector while setting certain benchmarks, which will ensure entry of only standard players in the industry," he said without disclosing details of the report. Setting stringent rules is likely to weed out non-serious and inefficient operators from the segment, which however could reduce competition and increase the fees that cash-management companies charge. The committee was set up after a woman was brutally attacked inside a secluded Bangalore ATM in November.

That attack led the Karnataka government to order banks to provide security guards at all ATMs in the state. There had also been other incidents of crime inside ATMs and attacks on vehicles of cash-management companies. Members from the Cash Logistics Association, Managed Service Providers and IBA were part of the committee.

The committee has recommended a grading system for cash-management companies. They will be rated based on their net worth, said two people with the direct knowledge of the matter. It has prepared the report primarily under five sub-heads: guidelines for infrastructure and operating practices for cash logistics, financial worthiness of cash logistics operators, provision of arms licences, accreditation and compliance system of cash logistic operators and guidelines for risk mitigatation and safety norms.

Under its recommendations, security guards at ATMs may be allowed to hold gun licences. Loading cash into ATMs may also be barred after 8 pm. "Clarity on operating standards shall ensure mitigation of risks significantly, pushing operators to work towards safer and more efficient operations for banking sector," said Rituraj Sinha, co-chair of the FICCI Private Security Sector Committee.

A former top cop, who studied threats faced by cash vans and ATMs, says incidents like the one in Bangalore and earlier one in Delhi can be prevented by posting armed guards.

Manjari Jaruhar, a retired IPS officer who was special director general CISF, had been roped in by Federation of Indian Chambers of Commerce and Industry (FIto recommend measures to protect cash vans and ATMs. She has also written to the home ministry on behalf of FICCI arguing for more security measures.

Speaking to TOI, Jaruhar called for issuance of firearms to private banks, saying the government can hold them accountable for misuse. "Firearms can be given to banks. The government has to apply its mind; focus must be on securing cash and customers. Risks are there but you have to weigh them," she said.

Jaruhar pointed out that at present, local police have a problem with guards using their personal weapons, which were issued to them for self-defence, for commercial use. "This is illegal. Courts in various states have clearly struck down this practice. Government can give firearms to banks. How and when they will give is something that needs to be discussed and chalked out," she added.

Jaruhar also questioned the effectiveness of CCTVs installed in some of the ATMs, pointing out that they can only be used to verify a crime. "What is needed is continuous real time monitoring of CCTV footage so that an unfolding crime can be stopped. Right now, footage are being used only after an incident."

Backing the government's policy of more ATMs to facilitate easier access to cash, the officer said this should also include securing the money and people visiting ATMs.

In its letter to MHA, FICCI has urged liberalizing the stringent gun licence rules, seeking guidelines for issue of arms licences on retainership basis to private security agencies. The letter, addressed to a joint secretary in MHA, said private security agencies are engaged in protection of crucial establishments like bank branches and ATMs and they have a dire need for armed security guards.

"But in recent months, various state police departments have clarified that private arms cannot be used for performing duties as armed security guards. In this scenario, security of critical sectors is compromised," the letter says. Urging MHA to act, it says the ministry had constituted a committee to review the matter and define guidelines for issues of arms licences on retainership basis to private security agencies licenced under Private Security Agencies (Regulation) Act (PSAR)

The government should come out soon with guidelines for issue of arms licenses on retainership basis to private security agencies, industry body FICCI has said.

In a letter to Joint Secretary in the Home Ministry, Veena Kumari Meena, FICCI said private security agencies are engaged in protection of crucial establishments like bank branches, ATMs and fuel stations.

Such establishments have a dire need for armed security guards and till now private agencies were employing persons holding arms licences in personal capacity to meet this requirement, the letter said.

"But in recent months various state police departments have clarified that private arms cannot be used for performing duties as armed security guards. In this scenario, security of critical sectors is compromised.

It said that to address this issue, the Home Ministry had constituted a committee to review the matter and define guidelines for issues of arms licences on retainership basis to private security agencies licensed under Private Security Agencies (Regulation) Act (PSAR).

"We would request you to kindly conclude this matter and addressing the pressing need of private security industry and thousands of critical establishments that require armed security," it said.

It also asked for organising a national level review meeting for the enforcement of the PSAR Act.

"It has been over eight years since the PSAR Act was legislated. Even as the Central Act has been adopted by all states and licensing authorities for private security agencies, on ground implementation of the Act has been rather slow," it added.

The government should come out soon with guidelines for issue of arms licenses on retainership basis to private security agencies, industry body FICCI has said.

In a letter to Joint Secretary in the Home Ministry, Veena Kumari Meena, FICCI said private security agencies are engaged in protection of crucial establishments like bank branches, ATMs and fuel stations.

Such establishments have a dire need for armed security guards and till now private agencies were employing persons holding arms licences in personal capacity to meet this requirement, the letter said.

"But in recent months various state police departments have clarified that private arms cannot be used for performing duties as armed security guards. In this scenario, security of critical sectors is compromised.

It said that to address this issue, the Home Ministry had constituted a committee to review the matter and define guidelines for issues of arms licences on retainership basis to private security agencies licensed under Private Security Agencies (Regulation) Act (PSAR).

"We would request you to kindly conclude this matter and addressing the pressing need of private security industry and thousands of critical establishments that require armed security," it said.

It also asked for organising a national level review meeting for the enforcement of the PSAR Act.

"It has been over eight years since the PSAR Act was legislated. Even as the Central Act has been adopted by all states and licensing authorities for private security agencies, on ground implementation of the Act has been rather slow," it added.

Speaking on the procurement of firearms, K Vijay Kumar, senior security adviser, Ministry of Home Affairs, today 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, said Kumar during the FICCI's first edition of 'Private Security Industry Conclave (PSIC) 2013' conference on the theme 'Policy Change for Sustainable Future' here.

While calling for coordination between the private security industry and the government, he suggested that the two agencies should work in tandem and bridge the gaps to increase efficiency.

Though the private security agencies face financial constraints at times, Kumar said, they should never compromise when hiring a trainer for the agency. "Choose the trainers with extreme care," he added.

FICCI has taken an initiative to represent the private security industry and in this regard a committee would work towards removing functional and policy-related impediments that have hampered growth potential of the industry.

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. Besides, conducive working environment must be provided to the personnel and the agency must look after the welfare of the personnel.

The government is yet to take a decision on allowing private security guards to carry firearms, a senior home ministry official said on Friday.

Until a decision is arrived at, such guards are allowed the use of non-lethal weapons to tackle issues related to security, K Vijay Kumar, senior security adviser at the home ministry told the "Private Security Industry Conclave 2013", organised here by the Federation of Indian Chambers of Commerce and Industry (FICCI).

Suggesting closer coordination between the private security industry and the government, he said the two agencies should work in tandem and bridge the gaps to increase effectiveness and efficiency.

Though private security agencies find themselves, at times, under financial constraints, they should never compromise when hiring a trainer for the agency, Kumar said.

Manjari Jaruhar, chairperson FICCI committee on private security industry and former special director general of the Central Industrial Security Force said: "The sheer size of the industry is its strength. The private security guards outnumber 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 utilising the force as an extended arm for enforcement agencies. Outsourcing non-critical activities of policing may be considered at the moment," she said.