NEW DELHI: The Narendra Modi government is set to announce the one-rank, one pension package that will kick in from July 2014 and use 2013 as the base year for calculations.
But it will stick to its position on a five year reset clause for veterans as against 10 years for civilians factoring in the complications resulting from a quicker adjustment. The ex-servicemen had demanded an annual adjustment.
The government, according to media reports, has decided to use 2013 as the base period and money will be paid from July 2014. The arrears are likely to be paid in four instalments spread over two years. In total, the government will need around Rs.8,000-10,000 crore as of now to implement the OROP.
But the major hurdle still seems to be veterans sticking to their demand of yearly revision of the pension. The government is determined not to concede ground on this issue and wants the pension to be revised every five years. However, even on Friday, veterans have refused the formula calling it ‘one rank five pension’.
Given the complexities in dealing with the duration of service and when someone retired, the government is also expected to announce a one-member judicial panel that will submit its report in six months.
Sources in the government said that an issue that had been hanging fire for several years has been resolved, at least for the moment. Although the UPA government had initially allocated only Rs 500 crore for OROP, the deal was sweetened after the PMO stepped in. Sources said that government took the view that there is a need to resolve the issue although it may put additional pressure on the resources available with the Centre.