Govt approves OROP, says will cost up to Rs 10,000 cr initially

The government of India on Saturday agreed to implement the One Pension One Rank for retired armed forces personnel.

The decision, announced by Defence Minister Manohar Parrikar, brings the curtains down on a prolonged agitation by ex-servicement that escalated into a fast-unto-death by some retired personnel last month.

While OROP – which calls for OROP uniform pension for personnel of the same rank regardless of date of retirement – had been a long-standing demand of armed forces personnel, its financial implications had been a major obstacle to its implementation.

“OROP to cost Rs 8000 crore to RS 10,000 crore, and likely to go up,” Parrikar said.

Arrears will be paid in four half-yearly instalments. The base year for the revised pension will be effective July 1, 2014. Pension revisions will be conducted every five years.

A judicial commission will also be set up to resolve the issue of equalisation of pension. The commission will submit its report within six months.

"We will ask for clarification on this issue," said Major General (retd) Satbir Singh following Parrikar's press conference.

"The government has accepted only one of our demands and rejected the remaining six, this is wrong," he said. "We are not fully satisfied with the government's decision."

He said a decision on continuing the ongoing fast-unto-death would be taken shortly.