By Rohit Srivastava
In a new development, after years of discussion, the Indian defence sector will finally witness the execution of Government Owned Contractor Operated (GOCO) model of Public-Private Partnership (PPP). Indian Army, on December 19, released a Request for Information (RFI) to shortlist Warehousing, Logistics and Supply Chain Management service providers to run Central Ordnance Depot (COD), Kanpur.
“The selected Service Provider will take over present infrastructure and related services from COD Kanpur on “as-it-is-and-where-it-is basis”. Maintenance of complete infrastructure will be thereafter the responsibility of the Service Provider,” the RFI said.
The service provider is expected to absorb civilian employee of the COD.
The ordnance depots are the heart of the army supply chain. They house whatever army needs from clothing to ammunition. They receive stores from factories and suppliers and send to army formation as and when required.
The COD Kanpur, est 1941, holds at an average approximately 70,000 Tons of general stores like clothing and footwear etc.
According to the RFI, the service provider is expected to undertake complete warehousing activities at the COD.
The GOCO model is under discussion for over one decade in the defence sector. It was proposed for even the Future Infantry Combat Vehicle (FICV). The model is considered as the cost-efficient model as the existing public sector facilities were to be used to manufacture by the private sector. But due to various structural and procedural challenges, the model did not find many supporters.
Government is also planning to open base repair depot to the private sector for maintenance services.