One Rank One Pension Announced. Protests Will Continue, Say Veterans: 10 Developments

"Despite the huge fiscal burden, given its commitment to the welfare of ex-servicemen, Government has decided to implement OROP," the Defence Minister said at a press conference that was attended by the three service chiefs.

The scheme will be effective from July 1, 2014 with arrears that will be paid in four half-yearly instalments. Widows and war widows will get arrears in a single instalment. The base year for calculating the pension has been fixed at 2013.

But the government will stick to revision of pension every five years and not the one, or maximum two years as demanded by the veterans. Also, military personnel who will retire voluntarily will not be eligible for the new pension structure. However, government sources have clarified that ex-servicemen who have taken premature retirement so far will be covered under the scheme.

That is not acceptable, the veterans said after the announcement. "Though we welcome the implementation of OROP by the government, we are not fully satisfied as they have not accepted the six points demanded by the ex-servicemen," said Major General Satbir Singh (retd.), who has been spearheading the veterans' agitation for OROP.

Ex-servicemen whose protest at Delhi's Jantar Mantar entered its 84th day declared that their agitation will continue, adding that they will call off the indefinite hunger strike only after they get an assurance from the government over the issue of premature retirement.

The estimated cost to implement OROP would be Rs 8,000 - 10,000 crore, Mr Parrikar said today, adding, "This will increase further." He also said that arrears alone would cost Rs 10,000 - 12,000 crore.

Since there are many cases of veterans of the same rank earning different pensions, the government has proposed to take the average of the maximum and minimum pension paid per rank in 2013, while protecting those who earn above average pensions in their rank.

The Defence Minister also announced that a one-member judicial committee will be set up to work out details of OROP and will submit its report in six months.

The veterans and the government had been involved in negotiations for months. The Prime Minister's Office stepped in last month after the strike escalated into a hunger-strike.

OROP was a key promise made by Prime Minister Narendra Modi when he was campaigning for last year's national election. OROP will give the same pension to ex-servicemen who retired many years ago as that which soldiers of the same rank retiring now draw. The scheme will benefit three million veterans.