Tuesday 21 June 2016

FICCI welcomes 49 per cent in private security industry

Mumbai, Jun 20: Industry body the Federation of Indian Chambers of Commerce and Industry (FICCI) today welcomed the government’s decision to allow 49 per cent foreign direct investment (FDI) in private security industry under the automatic route, saying it will add to the ease of doing business singificantly and is expected to expedite the investment process in the sector substantially. Conmmenting on the decision, FICCI
Committe on Private Security Industry co-chairman Rituraj Sinha said, ”The private security industry welcomes the announcement towards relaxation of foreign investment in the sector. Allowing up to 49 percent FDI under the automatic route shall add to ease of doing business significantly and is expected to expedite the investment process in the sector substantially.” However, the private security industry shall be engaging with the Department of Industrial Policy and Promotion ( DIPP) and the Ministry Of Home Affairs (MHA) to understand the announcement regarding allowing up to 74 per cent FDI in the private security sector under government approval route, he said.
Given that investment in the private security sector is capped at 49 pc as a result of the provisions under the Private Security Agencies Regulation Act (2005), the Government’s decision to allow majority foreign ownership in private security industry up to 74 pc would require amendments to the PSAR Act (2005) prior, he added.

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