The strict implementation of Private Security Agencies Regulation Act (PSARA) in Gujarat, following the 26/11 Mumbai attacks, has forced small-time private security agencies to sell their businesses in the state.

As per the Act, where the agencies need to obtain a state government licence for operation, there are standard requirements, including infrastructure and training of the guards, which the small players do not have.

Before the Act came into being, private security agencies had mushroomed in the state. It is estimated to be a Rs 3,000-crore industry, directly employing over 50 lakh people. Ahmedabad-based Docsuns Security Service Pvt Ltd is eyeing such agencies in Gujarat and Rajasthan for acquisition. “We are looking for an agency in Rajasthan, as we are not aware about the state. In future, we will also look for companies in Gujarat,” said S J Doctor, a company official.

Ashish Bhatia, IGP, Law and Order, Gandhinagar, has so far received 500-odd applications from various security agencies for getting licence. “We have issued around 300 licences,” said Bhatia.

Besides law, the economic slowdown has also affected the small timers. “Slowdown delayed the collection of payments from their clients, because of which many small private security agencies are finding it difficult to sustain,” said Sanil Kumar, vice-president, Globe Detective Agency Private Ltd.

The centralised contract system has also hit the business hard. “Most of the corporates now give a centralised contract and they look for pan India presence,” said Nilendu Mitra, a Topsgrup official. According to experts, nowadays, security is not confined only to providing guards, but also electronic surveillance system and consultancy. But the smaller companies usually do not have the capital, infrastructure, wherewithal or the knowledge for that. So, in order to grow despite their shortcomings, they partner with the bigger players, which they say is a win-win situation for both the parties.

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