Army's Government-owned, contractor-operated (GOCO) Model
- The Indian Army’s ambitious plan for modernising Army Base Workshops (ABWs) and implementing the ‘Government-owned, contractor-operated (GOCO)’ model is “delayed”.
- The original timeline for implementing the system lapsed in December 2019.
- The implementation of GOCO model is fraught with risks and operational challenges.
- Indian Army in January 2020 initiated the process of identifying potential industry partners to implement the GOCO model for its base workshops and ordnance depots intended to improve operational efficiency.
- This model was recommended by Lt. Gen. DB Shekatkar (Retd.) committee to enhance combat capability and re-balancing defence expenditure.
- It is one of the major reforms the army was considering in order to improve its combat capability while reducing spending.
- In it, the assets owned by the government will be operated by the private industries.
Eligibility for private entities:
- 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.
- In GOCO model, the assets owned by the government will be operated by the private industries.
- In such cases, there are possibilities of protraction of assets and the expertise being absorbed by private industry.
- The military manpower involved in the workshops is only 25% and 75% are civilian staff.
- The private companies might insist on rationalizing the workforce. The ratio of 75: 25 will become difficult to maintain.
- The modernisation of ABWs was also plagued by administrative inefficiency and delays in deciding whether to execute the modernisation project on a turnkey basis or through a combination of procurement and work.
- The best technologies grow at a faster rate.
- The private companies need not make investments on land, machinery and other support systems.
- The missions are set by the government and the private sectors are given full independence in implementing the missions using their best practices.
- Targets are achieved in a shorter time frame.
- It also boosts competitiveness among the private entities paving the way to newer technologies.
Army workshops / Ordnance factories
- Total 8 workshops in India located in Jabalpur, Allahabad, Meerut, Kirkee, New Delhi, Agra, Bengaluru and Kankinara.
- Only Bengaluru workshop manufactures spares.
- Rest are involved only in overhauling.