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Government Owned Contractor Operated model

Topics Covered: Investment models.

Government Owned Contractor Operated model

What to study?

For Prelims: Features of the GOCO model.

For Mains: Significance and potential.

Context: The 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 intended to improve operational efficiency.

Background:

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.”

How it works?

  • The assets owned by government will be operated by the private industries.
  • Under the model, the private companies need not make investments on land, machinery and other support systems.
  • The missions are set by government and the private sectors are given full independence in implementing the missions using their best practices.

Significance of the model:

The main advantage of the model is that the targets are achieved in lesser time frame. Also, it will boost competitiveness among the private entities paving way to newer technologies.

Sources: The Hindu.