He also said steps were being taken to put in place a robust cyber security structure.
Speaking at a conference on 'Safety and Security: Need for Police Reforms' organised by the Associated Chamber of Commerce and Industry (Assocham), Shinde said the government had extended the scheme for modernisation of police forces for five years from 2012-13.
According to an Assocham release, Shinde said the government was also working on a robust cyber security structure by building capacities.
He said the reach of the multi-agency centre would be increased to meet emerging challenges.
Shinde said the Model Police Act had been circulated among states and 15 had either enacted a new police act or amended existing acts.
Delhi Police Commissioner Neeraj Kumar, who also spoke at the event, favoured continuation of the force under the administrative control of the central government.
He also said technology had become a key asset in policing.
He said technology had enabled integration of diverse systems, inter-operability of stand-alone systems and streamlined and systematised operational aspects of policing.
He said technology would enable police to enforce traffic discipline.
According to the release, the officer said real reform took place when police functioned "according to rule of law and not according to rule of politics".
There have been suggestions that the administrative control of Delhi Police be handed over to the elected government for better accountability.
Answering queries, the officer said effectiveness of police should be judged by its capacity to prevent crime and make communities feel safe and secure.