DRDO, India’s premier defense research organization, is now accepting applications from outside investors. According to DRDO’s estimates, it possesses assets worth more than Rs 1 lakh crore spread across the country. As a result, private businesses will manage government assets, saving the government money on the costs of purchasing or leasing land, machinery, and other infrastructure.
Key Highlight:
- The Defense Research and Development Organization (DRDO) is opening its doors to private players by adopting the GOCO (Government-Owned Company Operated) model.
- Private businesses will manage government assets, saving the government money on the costs of purchasing or leasing land, machinery, and other infrastructure.
- The move will increase private sector competition and open the door to new technologies.
- The MoD has set a lofty goal of Rs 35,000 crore in defense exports by 2025.
Defence Research and Development Organization (DRDO), India’s premier defense research agency, is opening its doors to private players by adopting the GOCO (Government-Owned Company Operated) model, where private industries will operate government assets, sparing them from the need to invest in land, machinery or other support systems.
The Prime Minister’s Office has directed the Defense Research and Development Organization (DRDO) to make its network of approximately 50 laboratories available to the public. Over Rs 1 lakh crore in assets are thought to be held by the Defense Research and Development Organization (DRDO).
In an internal note to all of the DRDO’s laboratories, the agency stated that it is “exploring [the] possibility of identifying potential industry partners for its special facilities, infrastructures, and related activities that can be operated by industry partner” through this model. According to the memo, the GOCO model’s industry partners should be selected using these detailed guidelines.
Moves like this could free up DRDO’s time to focus on higher-value tasks that can be delegated to industry partners.
This will increase the efficiency of the Defense Research and Development Organization (DRDO) while also providing a more favorable environment for the defense industry, according to the memo. According to the announcement, the move will increase private sector competition and open the door to new technologies.
Keeping DRDO focused on R&D while giving it a role in partnering with industries to help them improve their capability is a win-win situation.
DRDO’s facilities, plants, equipment, and machinery will be operated and maintained by industry partners (under GOCO). Any knowledge transfer required will be determined by the project’s specifications.
As it was clarified, “GOCO partner need not make investments in land, machinery and other support systems.” The chosen private sector partner will have enough freedom to carry out the mission according to their own standards.
Aatma Nirbhar Bharat, a government initiative aimed at improving self-reliance and speeding up India’s defense exports, is one of several measures taken by the Modi government to boost the domestic defense manufacturing sector. The MoD has set a lofty goal of Rs 35,000 crore in defense exports by 2025.
In an effort to boost operational efficiency, the Army has already implemented the Government Owned Contractor Operated (GOCO) model in its base workshops and ordnance depots. This was done in accordance with the committee’s recommendations to improve combat capability while also rebalancing defense spending.
