Sources said that the government has given indications to the ex-servicemen that it will bring the premature retirement clause in OROP. But it may not be applied from retrospect, sources added.
Nudged by the Rashtriya Swayamsevak Sangh (RSS), the Modi government finally relented and declared One Rank One Pension (OROP) on Saturday, satisfying the ex- servicemen on agitation mode on most counts, barring a few.
The breakthrough came after a late-night meeting with ex-servicemen in which defence minister Manohar Parrikar clarified on the issue of premature retirement. In his press briefing, Parrikar had wrongly mentioned it as "voluntary retirement" and said that "those defence personnel who voluntarily retire will not be covered under OROP scheme."
Sources said that the government has given indications to the ex-servicemen that it will bring the premature retirement clause in OROP. But it may not be applied from retrospect, sources added.
The ex-servicemen are expected to end their indefinite hunger strike on Sunday, but may continue with their agitation for full implementation of their demands.
Announcing the much-awaited decision aimed at ending the 83-day-old agitation of ex-servicemen, Parrikar said: "Despite a huge financial burden, given its commitment to the welfare of ex-servicemen, the government has taken a decision to implement OROP."
Incidentally, the government's decision came days before the announcement of Bihar state elections.
"The cost of OROP to the exchequer would be around Rs 8,000-10,000 crore at present and it will increase in future," said Parrikar. He refused to take any questions.
Trying to pass the buck on the previous government, he said: "It is a matter of deep anguish that various governments remained ambivalent on the issue. In February 2014, the then government stated that OROP would be implemented in 2014-15, but did not specify what OROP would be, how it would be implemented or how much it would cost… It is for these reasons that the present government took time to fulfill its promise."
The base year for the calculation of OROP would be calendar year 2013 and it will be implemented from July 1, 2014, Parrikar said.
Pension will be re-fixed for all pensioners retiring in the same rank and with the same length of service at the average of minimum and maximum pension in 2013. Those drawing pension above the average will be protected, the minister said.
The expenditure on arrears alone is expected to cost the exchequer Rs 10,000-12,000 crore.
The government has also decided to set up a one-member judicial committee to work out the details, which will file a report in six months, the minister said.
OROP arrears will be paid in four half-yearly installments; all widows, including war widows, will be paid arrears in one installment.
Read: Now, paramilitary forces set their eyes on OROP
Welcoming the government's decision in part, that is accepting the definition of OROP and implementing it, the veterans have rejected the five-year revision time-frame for pension and the single-member judicial committee to sort out the remaining issues.
"According to us, the government has not accepted all our demands. We are not satisfied, and, at this point, we cannot withdraw the agitation," said Major General (retd) Satbir Singh, chairman of Indian Ex-Servicemen.
The veterans were critical of the government's claim that there was nothing as VRS in the defence forces and keeping the veterans who have taken premature retirement out of the purview of OROP was unacceptable.
Blaming bureaucrats for introducing it and thus keeping 40% ex-servicemen out of its purview, Singh said: "We do not agree to it. It should have been applicable to all defence force personnel as personnel cannot opt out from forces on their own will."
Vice Admiral (retd) Suresh Bangara, former chief of the Southern Naval Command, was also of the view that the government should reconsider OROP for those who retire prematurely as many ex-servicemen are forced to retire because defence forces have a pyramidal structure and only one-third reach the level of a full colonel or an equivalent rank.
Opinion: Why the One Rank One Pension is not a good idea
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