Creating Jobs, Securing New India

Private Security Industry Conclave 2019

The Federation of Indian Chambers of Commerce and Industry (FICCI) organized the seventh edition of Private Security Industry Conclave (PSIC) 2019 on 30 August 2019 at Federation House, New Delhi with the theme – ‘Creating Jobs – Securing New India.’ The conclave was aimed to highlight the potential of private security industry to contribute to the vision ‘new India’ through its increasing role in homeland security and employment generation. The event brought together experts from varied sections including the government, private security industry, state controlling authorities, service users and other stakeholders.

The Conclave was inaugurated by Piyush Goyal, Minister of Commerce & Industry, as well as Railways, Government of India. Recognising the significance of the private security industry in terms of job creation and national security, Mr Goyal suggested that the government will try resolving the GST issues and ask bankers to help.

“If the industry comes into the ambit of regulation, the government will look into the GST problem where customers delay the payments, but the GST has to be paid on the due date,” he said, “Two things can be done. We can try ensuring timely payments from all government organizations, and banks can be asked to devise a product dedicated to the private security industry where over-dues for a regulated entity from a creditworthy client can be securitized.”

“Delay in granting licenses is a serious issue. I would urge the industry to come up with a framework for the online registration process and minimum documentation, which the Home Ministry can notify to ensure time-bound manner registration is granted. The framework will take care of the interest of workers in the industry “

Piyush Goyal
Minister of Commerce & Industry, as well as Railways, Government of India

Mr Goyal urged the industry to recommend licencing framework guidelines to avoid delays in the registration of private security agencies. The government is willing to act as a facilitator in setting up an organized framework for the private security industry including matters relating to licensing, registration and training.

The Railway Minister also asked the industry to impart better training to the security guards and possibly design certification in consultation with the Home Ministry for increasing the avenues for promotion and better income of the guards. As for multiple regulators in the states, the industry can flag the problems and the government would try dovetailing all the regulations into a uniform framework. The minister further said that the problems in the industry have to be sorted out mutually and he would look into the possibility of engaging private security guards in the government, particularly in the railways, and in less critical areas. The sector can be one of the largest employment generators and the current workforce of 70 lakh can grow to two crores.

“The industry is a bridge between unemployed youth and the organised sector. Even amidst the current slowdown, the private security industry continues to grow and create jobs. The given assurances from the senior ministers to resolve issues related with the GST, Code on Wages, Credit Access for smaller companies and enabling rather than enforcing compliance to labour reforms is very reassuring”

Rituraj Sinha
Chair, FICCI Committee on PSI

The PSIC 2019 was also graced by Santosh Kumar Gangwar, Minister of State (Independent Charge) for Labour and Employment, Government of India who in the next session suggested that the private security industry plays a major role in creating jobs in the country and the guards who put in a lot of hard works deserve a decent and timely wage to sustain themselves. The government will ensure a fair wage for all private security workers by bringing it under the purview of National Minimum Floor Wage.

“Since 2014, the government has been working to reclassify all old labour laws in four labour codes, and the Parliament has passed the Code on Wages in August. The passage of this code entitles minimum and timely wage to all 50 crore security workers “

Santosh Kumar Gangwar
Minister of State (Independent Charge) for Labour and Employment, Government of India

On the disparity in minimum wages in different states ranging from Rs.5,000 to Rs.13,000 per month, the minister informed that there has been a provision of National Minimum Floor Wage in the Code of Wage which will decide the minimum wage for all the states. Besides, he appealed all the states to follow suits towards classification of security guards as skilled labour is already done in 2017.

“The Code on Wages is a historic bill which will ensure statutory protection for minimum wages and timely payment of wages to approximately 50 crore workers of organized as well as unorganized sector. We welcome the Government’s initiative to have brought massive labour reforms in the past couple of years, along with the Code on Wages and the proposed future changes. It will eventually aid in creating lakhs of jobs. We also appreciate the intent of the government to execute these massive changes, through use of digital solutions and change the role of authorities from only inspection to facilitation also. We expect it will prove to be a milestone as it will promote respectful life to every worker of the country and tremendously help companies and entrepreneurs in ease of doing business”

Rajeev Sharma
MD – G4S India

Earlier, Sandip Somany, President, FICCI said that the private security industry is a sunrise sector with a potential to be the second-largest employment generator in India. It employs workers from a rural and poor background. The government and industry could focus on the cost of doing business, regulatory reforms, labour reforms and sector-specific special packages, and blending of manpower with technology for providing better services.

He also emphasized on the proper enforcement of the Private Security Agencies (Regulation) Act, besides curbing delays in granting licences, streamlining of different regulatory conditions in states along with the PPP approach where the industry would engage with law enforcement agencies.

Manjari Jaruhar, Advisor, FICCI Committee on Private Security Industry suggested that the Home Ministry should have a separate cell to look after the agencies and give it a proper direction.


Leave a Comment