To improve operational efficiency the Indian Army has decided to implement the Government Owned Contractor Operated (GOCO) model for its base workshops and ordnance depots.
What is GOCO model?
• The GOCO model was one of the recommendations of the Lt. Gen. DB Shekatkar (Retd.) committee to “enhance combat capability and re-balancing defence expenditure.”
• Here the assets are owned by the government but will be used and operated by a private party.
• The private party will not make any capital investments.
Fig 1: How GOCO Model Works?
Issues and Concerns
The assets owned by Govt will be operated by the private industry on agreed terms. The process of transfer of assets would have to be protracted with expertise being gradually absorbed by the private industry.
The present infrastructure will require investment for upgrading Plant and Machinery and training of employees.
Private companies will insist on the government rationalizing the workforce and replacement of Army personnel. There could be some disruptions in its equipment maintenance resources.