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Army’s GOCO Model for Improving Efficiency

  • 10 Jan 2020
  • 2 min read

Why in News

Recently, the Indian Army has initiated the process of identifying potential industry partners to implement the Government Owned Contractor Operated (GOCO) model for its base workshops and ordnance depots.

  • GOCO will improve the operational efficiency of the army.

Key Points

  • The army issued a Request For Information (RFI) to shortlist service providers with experience in warehousing, logistics and supply chain management.
  • Criteria for Service Provider: It should be an Indian registered company with at least 10 years of working experience in related domains and have an average annual turnover of ₹50 crore for each of the last three financial years.

Government Owned Contractor Operated Model

  • It was one of the recommendations of the Lt. Gen. DB Shekatkar (Retd.) committee to enhance combat capability and re-balancing defence expenditure.
  • In GOCO model, the assets owned by government is operated by the private industries.
  • The private players are given full autonomy in implementing the vision set by the government, using their best practices.
  • The main advantage of the model is that it is efficient and will boost competitiveness among the private entities.

Source: TH

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