The Indian Army has recently commenced the procedure of identifying potential industry partners to implement the Government Owned Contractor Operated (GOCO) model for its base workshops and ordnance depots. The integration of the GOCO model would serve to enhance the operational efficacy of the Indian Army.
Initiation of the Process
In a significant move towards modernisation, the Indian Army has issued a Request For Information (RFI). This is carried out with an objective to shortlist service providers that possess expertise in the fields of warehousing, logistics and effective supply chain management.
Selection Criteria for Service Providers
To qualify for implementing the GOCO model, service providers need to satisfy a set criterion. The service provider should be a company registered within India with a minimum of ten years of experience in related domains. Furthermore, these companies should also have maintained an average annual turnover of ₹50 crore over the course of the past three financial years.
The GOCO Model Explained
The introduction of the GOCO model can be traced back to the recommendations made by the Lt. Gen. DB Shekatkar (Retd.) committee. The prime objective of this proposal was to enhance combat capability along with re-balancing defence expenditure. The GOCO model signifies a collaboration wherein the assets owned by the government are operated by private industries.
This model provides full autonomy to private players which allows them to implement the vision outline put forth by the government. They can apply their best practices for this implementation. A major advantage is boosting the efficiency of operations and fostering competitiveness among private entities.
Facts Related to the GOCO Implementation
| Fact | Details |
|---|---|
| Model Origin | Recommendation of Lt. Gen. DB Shekatkar (Retd.) committee |
| Purpose | Enhance combat capability and re-balance defence expenditure |
| Functioning | Government-owned assets are operated by private industries |
| Benefits | Increases efficiency and competitiveness among private entities |
The Impact of the GOCO Model on the Indian Army
The GOCO model will serve as a game-changer for the Indian Army. It will not only bring about an increase in operational efficiency, but also instigate a renewed sense of competition among private entities. This, in turn, is bound to create an environment that fosters growth and innovation. By granting private players the autonomy to operationalize government assets, the model encourages the application of best practices across the board, thereby driving overall improvement and progress.