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State-wise PSARA Licence Status in India

UID: OTH-20250225-IN-02

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Meta Data

Source

Ministry of Home Affairs, GoI

Last Updated

March 4, 2025

Time Range

2025

Periodicity

N.A

Overview

A PSARA License is a mandatory authorization required by private security agencies to operate legally in India under the Private Security Agencies (Regulation) Act, 2005. This comprehensive regulatory framework was implemented by the Ministry of Home Affairs to standardize and monitor the rapidly growing private security sector in India. The Act came into effect on March 15, 2006, establishing specific guidelines for the operation, training, and management of private security agencies nationwide.

The PSARA licensing system ensures that security agencies meet minimum standards for personnel training, equipment, and operational protocols. It aims to professionalize the industry while simultaneously addressing security concerns by requiring background verification of security personnel. Under this regulatory framework, each state/UT has a designated Controlling Authority responsible for issuing licenses based on the central model rules, which they may adapt to local conditions while maintaining core compliance requirements.

In 2020, the Ministry updated the regulatory framework by introducing the Private Security Agencies Central Model Rules, 2020, superseding the earlier 2006 rules. Additionally, specific rules for cash transportation activities were introduced in 2018 to address the unique security challenges in that sector. To standardize processes nationwide, the Ministry of Home Affairs collaborated with the National Informatics Centre to develop the ‘Private Security Agency Licensing Portal,’ creating a unified digital platform for license issuance and management across all states and territories.

Trends & Insights

In total, India issued 47,005 PSARA licenses, out of which 26,307 (56%) are currently active, while 20,698 (44%) expired. The high number of expired licenses raises concerns about possible challenges in the renewal process or perhaps suggests an ongoing consolidation in the industry. Maharashtra leads in the number of licenses issued, with 7,378, followed closely by Gujarat at 7,217. This indicates that these two economically active states are major hubs for private security operations. Karnataka (4,008), Uttar Pradesh (3,924), and Rajasthan (3,700) are also among the top states in terms of licenses. Together, these five states account for around 56% of all PSARA licenses issued across India, showing how concentrated the private security industry is in regions with strong economic activity.

However, when looking at active licenses, the scenario shifts a bit. Maharashtra remains at the top with 4,888 active licenses, meaning 66% of the licenses issued there are still valid. On the other hand, Gujarat presents a concerning trend, with only 3,327 active licenses—just 46% of what was issued—indicating a higher rate of expired permits. This suggests Maharashtra has a relatively stable and better-regulated private security market, whereas Gujarat seems to be struggling with compliance, or many businesses have shut down.

There are also significant regional imbalances when it comes to private security services. Delhi, despite its small size, has a considerable number of licenses—2,304 in total, with 1,709 of them still active—reflecting the high demand for security services in the national capital. In contrast, several Northeastern states barely have any presence in this sector. Nagaland has only 16 licenses, Manipur has 21, and Mizoram has 23, making them the states with the lowest number of private security licenses. Ladakh and Lakshadweep don’t have any licensed private security agencies at all, which is likely due to their remote locations and relatively low demand.

Karnataka stands out for a different reason—it has an alarmingly low compliance rate, with just 25% of its licenses (994 out of 4,008) still active. This suggests there might be regulatory hurdles or instability in the private security sector there. On the other hand, Madhya Pradesh seems to be doing exceptionally well in maintaining active licenses, with an impressive 94% of them (1,380 out of 1,471) still valid, reflecting strong regulatory efficiency. There are some inconsistencies in data reporting as well. For example, Mizoram and West Bengal haven’t provided clear data on active licenses, making it harder to assess the full picture. West Bengal’s case is particularly odd—all 741 of its licenses are marked as expired. This could either indicate a serious industry issue or simply be a data reporting error.

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Citation

Please cite this article using proper attribution to 360 Analytika when referencing or sharing our content.

Ministry of Home Affairs. (2025). State-wise PSARA Licence Status in India (360 Analytika, Ed.) [Dataset]. https://360analytika.com/state-wise-psara-licence-status-in-india/

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