Capex on security may hit $2.73 billion

New Delhi: The capital expenditure by central and state government agencies on homeland security presents potential of $2.73 billion for the year 2018-2019, according to a Assocham-KPMG study on Sunday.

“Much of this potential is created due to police modernisation, critical infrastructure protection and counter terrorism efforts of the government,” said the study. Some opportunities are also present in the private sector and export markets, it said.

 In 2018, the budgetary allocation to ministry of home affairs was around $15.8 billion, a growth of 10 per cent over the previous year, it said.

“Around eight per cent ($1.3 billion) of the total budget has been allocated towards modernisation of homeland security forces and upgradation of current infrastructure,” it said.

The study also highlighted that while total budget earmarked by state governments for modernisation of state police forces, and up gradation of state police infrastructure is $132 million, an additional provision for security related expenditure of $332 million has been made for left wing extremism affected areas.

Further, the study stated that increased spending on infra development and modernisation is the need of the hour as police forces are facing multiple challenges.

“With increased allocation of funds to homeland security, there is a pressing need for overhauling its physical, procedural and technological architecture, to address new and emerging threats,” it said.