Government Owned Contractor Operated (GOCO) Model

Government Owned Contractor Operated (GOCO) Model

Subject – Economy

Context – The Army’s ambitious plan for modernisation of the Army Base Workshops (ABWs) and implementation of ‘Government-owned, contractor-operated (GOCO)’ model is “delayed” and the original timeline for implementing the system lapsed in December 2019, the Comptroller and Auditor General (CAG) said in its report tabled in the Parliament.

Concept –

• 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.

Eligibility–

• 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.