Indian Army Updates

Government Owned Contractor Operated (GOCO) Model Priority 1

Note4Students

From UPSC perspective, the following things are important :

Prelims level : GOCO Model

Mains level : Various investment models


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 intended to improve operational efficiency.

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.
  • In GOCO model, the assets owned by government will be operated by the private industries.
  • Under the GOCO 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.
  • 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.

Who will be eligible under the mode?

  • The service provider 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.

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