Over the last 6 years that FICCI Private Security Industry Committee has been functional, we have endeavored to take up issues confronting owners as well as lacs of individuals employed in this sector. Our focus has been on engaging with government to take up policy reform agenda to create a framework conducive to Private Security Industry. Through the collective efforts of all members of FICCI PSI Committee, we have secured landmark policy changes in last few years. Recategorization of security workers as skilled workers under minimum wages act was a major achievement which was secured through active engagement at all levels of Ministry of Labor and Employment.
Similarly, we were able to secure reduction of GST rate on fire and electronic equipment from 28% to 18%. Recently our efforts for introducing minimum standards around cash logistics industry also bore fruit when RBI notified guidelines for cash logistics industries in April’ 18.
FICCI Private Security Industry Committee has been closely working with Ministry of Home Affairs since its inception. Various aspects related to License application process, antecedent verification, validity of training certificates across states amongst other aspects have been clarified through active dialogue. Most recently Ministry of Home Affairs also introduced model rules under Private Security Agencies (Regulation) Act for cash van operations.
Our endeavor is to continue working with different arms of central and state government to highlight issues confronting private security industry sector and we shall continue to pursue its objectives in right earnest.
Top 3 challenges in this sector and the impact of GST on this sector:
Private Security Industry was largely compliant with service tax regimen in the past, so I don’t see GST as a fundamental change in itself however it is a fact that Private security today is supplementing the government law and order machinery and has become an essential service for any nature of economic activity. Also given the massive role of private security sector in job creation, we believe that 18% GST slab rate needs reconsideration. Over the last 6 months, FICCI PSI Committee has engaged with Ministry of Finance as well as State ministry of Finance to present our case. We are hopeful that our request will be considered favorably.
Training is an important issue for this sector. What is FICCI’s role in this?
FICCI PSI Committee has recently supported Ministry of Skill Development and Entrepreneurship efforts for skilling and certification in Private security sector through Recognition of Prior Learning (RPL) 4.0 for Private Security Personnel. At the recently concluded Private Security Industry Conclave 2018, 17 companies executed MOU independent with National Skill Development Council (NSDC) to certify over 3 lacs manpower under this scheme. Being one of the largest employment generating sector, we will continue to engage with Ministry of Skill Development and Entrepreneurship to ensure that an enabling framework can be created that allows every interested security company in the country to collaborate with Management and Entrepreneurship & Professional Skills Councils (MEPSC)/National Skill Development Council (NSDC) directly.
What are the roadblocks to success in getting relief for Private Security Industry on GST issues?
The PSI Committee of FICCI has striven hard to establish credibility with policy makers. After sustained meetings we can say with confidence that the Finance Ministry has the issue in hand. It is however difficult to put a timeline on it. We have had several rounds of discussions, and more will take place.
Future plans for FICCI for the private security sector:
FICCI PSI Committee is working intensely for relief of GST at the moment. We also intend to take up Private Security Agencies (Regulation) Act enforcement related issues with Ministry of Home Affairs in parallel. We will also continue to expand the scope of our dialogue with Ministry of Skill Development and Entrepreneurship and National Skills Development Corporation (NSDC).