IAS Gyan

Daily News Analysis

GOCO (Government-Owned Company Operated) model                                                                                                                

1st December, 2021 Security

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What is the issue?

  • 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.
  • The implementation of GOCO model is fraught with risks and operational challenges as identified by the Headquarters Base Workshop Group.


What is GOCO (Government-Owned Company Operated) model?

  • In this model private industries will operate government-assets, sparing them of the need to invest in land, machinery or other support systems.
  • The GOCO model was meant to modernise the workshops as well free up Army personnel from maintenance work.
  • GOCO partner need not make investment in land, machinery and other support system.
  • The selected private industry partner will get enough independence in implementing the mission using their best practices.