The document discusses opportunities in India's homeland security market and procurement procedures and challenges. It notes that the homeland security budget is over $8 billion currently and expected to reach $16 billion by 2018. It outlines major areas of modernization like border security fencing, ports, and a nationwide crime tracking system. Procurement for central police organizations is handled by the Ministry of Home Affairs with an annual budget over $12 billion. However, challenges for procurement include strict licensing, uncertainty over needs, and lack of guarantees for purchases.

1. ©Indianeye Security (P) Ltd., Sept 2012
HOMELAND SECURITY : OPPORTUNITIES
IN INDIAN MARKET, PROCUREMENT
PROCEDURES & CHALLENGES

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REVIEW
 Introduction.
 Homeland Security Budget Overview.
 Major Thrust Areas for Modernisation & Budgets for
2013-14
 Tendering Process in Brief.

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HOMELAND SECURITY IN
INDIA

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• Relatively new concept in India, in the limelight more after 9/11
attacks in the US and 26/11 Mumbai attacks.
• One of the most aggressively pursued sectors with both
government and industry investing heavily to provide the best
technology to our security agencies
• Major Threats Infiltration from Eastern & Western
borders, illegal migration, terrorism in Kashmir and North
East, Maoist insurgency in parts of Central India, Rise of Urban
Terrorism are major challenges confronting the country.
• The Ministry of Home Affairs (MHA) is tasked with major
homeland security-related functions through a multitude of
agencies working under it.
• The Homeland Security market which currently stands at
about USD 8 Bn is likely to reach USD 16 Bn / Year by 2018.
OVERVIEW

5. For Industry. By Industry
Overview- Indian MHA Agencies
5
NSA
NTRO
R&AW
NSCS
SFF
MHA
Border Mgt
Internal
Security
Police
Modernisation
Delhi Police
& Union
Territories
IB
NIA
State Govts
Police
• National Security Policy defined
by NSA
• Procurement for all Central
Police Organizations & Delhi
Police come under MHA
• All States do their own
procurements
• IB – Intelligence Bureau
• NTRO – National Technical Research Organisation
• R & AW – Research & Analysis Wing
• NSCS - National Security Council Secretariat
• SFF – Special Frontier Force
• NIA – National Investigation Agency

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• Border Security Fencing. India has a land border of 15,107 km (spread
over 17 states) and a coastline border of 7,517km (spread over 13 states and
05 union territories).
• Integrated Border Check Posts (ICP). ICPs have been earmarked for 13
locations along the borders at an estimated cost of INR 635 Cr (USD 125
Million approx).
• Border Out Posts (BOPS). Plans for additional 509 BOPS (383 and 126
along India- Bangladesh and India- Pakistan border respectively), in addition
to existing 1,411.
• National Maritime Domain Awareness Grid. To link up intelligence
agencies, Navy units, coastal police, ports, Ministry of Shipping, Agriculture &
Depts of Customs & Revenue.
• Crime and Criminal Tracking Network and Systems (CCTNS) - .An
Approx 1 Billion Dollar Project to create a nationwide database of crime and
criminals, their biometric profiles, thus facilitating collection, storage, retrieval,
analysis, transfer and sharing of data and information between police stations
at both state and national level ( in 2 phases of USD 500 Million each)
MAJOR THRUST AREAS FOR MODERNISATION

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• Identification of Boats. Boats of over 20m length will be
fitted/ provided with navigational and communication
equipments (AIS type B transponders) to facilitate vessel
identification. ID cards too will be issued to fishermen.
• NATGRID (National Intelligence Grid). For linking data
bases of 21 Major Security Agencies and will include data
sources like income tax, banks, railway and air travel,
immigration records, etc.
• Corporate Security and Private Security Agencies. This is
one of the largest employer industries in India. It provides
employment to about 60 million men and women. The total
number of security guards is expected to touch 9.5 m over the
next 3 years.
MAJOR THRUST AREAS FOR MODERNISATION

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• UID Project. Unique identification (UID) project is meant to
provide identification for each resident besides acting as basis
for efficient delivery of welfare services and monitoring of
various programes / schemes of the govt.
• Critical Infrastructure Protection. The security of vital
installations is the responsibility of the concerned ministry/
department/ state government. Expected opportunities around
USD 6-8 Bn over the next 4-5 years.
• City Surveillance Projects Almost all major cities in the
country have started work on installing CCTV cameras at key
places/ buildings to enable better monitoring of the place.
(q) Modernisation of Forces. MHA is supporting states to
implement schemes for Modernisation of Police Forces (MFP)
and it includes improving mobility, weaponry, communication
systems, buildings and training.
MAJOR THRUST AREAS FOR MODERNISATION

9. For Industry. By Industry
MHA: Forces & Annual Budget
Procurement ex New Delhi/ States
9
NSG
Counter
Terrorist Ops
100 Mn
State Police
26 States & 9 UTs
500 Mn
CISF
Industrial
Security, Airports
400 Mn
CRPF (200 Bns)
Internal Security
1.4 Bn
BSF (176 Bns)
Pakistan,
Bangladesh
1.2 Bn
ITBP (45 Bns)
China Border
180 Mn
AR (46 Bns) *
Myanmar, Internal
Security
180 Mn
SSB (7 Bns)
Bhutan
50 Mn
IB
Internal
Intelligence
300 Mn
Delhi Police
Delhi NCT
120 Mn
Total = 12 Bn USD
15 %-18% for Modernisation
1.5 to 1.8 Bn USD
Centrally Funded Schemes Additional USD
2.5 - 3 Bn

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MHA Tendering Process at a Glance
 Estimate (Qty. and Amount)
 EOI – Expression of Interest
 RFP/RFQ – Request for Proposal / Quotation
 PBC – Pre Bid Conference
 NIT – Notice Inviting Tender
 APPROVAL
 WEB PUBLICITY
 EMD – Earnest Money Deposit
 BIDDING
 TOC – Tender Opening Committee (Tech)
 APPROVAL

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Process at a Glance ( Cont’d)
 TOC – Tender Opening Committee(Fin. Bid)
 APPROVAL
 TEC – Tender Evaluation Committee
 APPROVAL
 PO - Purchase Order
 AWARD OF CONTRACT
 SD - Security Deposit
 AGREEMENT
 REFUND OF EMD
 NOTICE / WEB PUBLICITY ABOUT AWARD OF
CONTRACT (Downloadable form)

12. For Industry. By Industry
INDIAN HOMELAND SECURITY : NON PARA MILITARY PROCUREMENT
SNo Area Likley Expenditure
(a) Airport Security $ 3.2 Bn by 2016
(b) Police Modernisation $ 7.5 Bn by Centre
Government and UDS 2
bn by State Goverments
(c) Corporate Scale up their Security
Budget by 30 to 40 %
(d) Hotel Infrastructure Security $ 1.2 Bn Per Annum
(e) Transport Sector Security (Air
and Railways)
$ 1 Bn Per Annum
(f) Banking and Financial Sector $ 800 Million

13. For Industry. By Industry
KEY CURRENT INITIATIVES BY HOME MINISTRY
13
S No Initiative ( 2013-14 Only) Budget
(a) Optronics – Night Vision incl Weapon
Sights
$ 200 Million
(b) Optronics – Thermal Imagers ( Cooled &
Uncooled)
$ 150 Million
(b) CCTNS – Phase II ( Intelligent Hardware) $ 250 Million
(c) National Population Register
(Project on immigration, Visa and
Foreigners and Registration and Tracking
(IVFRT))
$ 300 Million
(d) NAT GRID ( National Intelligence Grid) $ 25 Million
(e) Cyber Forensics $ 50 Million
(f) Integrated Border Management $ 75 Million
(g) Outdoor City Surveillance Projects $ 150 Million
(h) Mega City Policing $ 250 Million

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Challenges in MHA Procurement
 The possibility of sale of weapons and other equipment to forces antithetical to peace and
order has prompted putting in place of strict licensing restrictions .
 Uncertainty over the ability of public sector units and Ordnance Factories to withstand
competition from the private sector has further hindered issuance of fresh licenses and
renewal of permits for existing firms.
 An ever evolving security landscape and a procurement policy playing catch-up together
means little certainty over the exact needs of the enforcement machinery.
 Neither the Ministry of Defence (MoD) nor the Ministry of Home Affairs (MHA)
is bound by existing policy to offer guarantee of purchase on systems and
equipment. Under the guidelines for licensing production of arms and
ammunition, the Government is required merely to make its acquisition plans
publicly known.
 A combination of these factors raises the entry costs for willing private sector participants
in the internal security sector relative to expected gains, despite widespread
acknowledgement to a multitude of opportunities.
 Appreciable growth in India’s aerospace exports since 2006 confirms that
given a conducive policy environment – with adequate checks and balances –
Indian industry is more than capable of meeting the Government half way in
rising to the challenge of ensuring security and stability within the nation’s
territories.

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