OROP implementation will cost Rs 7,500 cr a year: Govt

The total increase in the defence budget for pensions is estimated to go up from Rs 54,000 crore (BE 2015-16) to around Rs 65,000 crore (proposed BE 2016-17).

By: Express News Service | New Delhi | Updated: February 4, 2016 12:28 am
OROP, OROP tables, OROP instructions Veteran servicemen shout slogans during a protest against the One Rank One Pension scheme outside the Finance Minister Arun Jaitley residence in New Delhi. (Source: file photo/ PTI Photo)

The One Rank One Pension (OROP) scheme will cost the government Rs 7,500 crore per year as against the earlier projected estimate of Rs 8,300 crore. The government on Wednesday issued detailed instructions regarding OROP implementation and said that the defence pension outlay was set to increase by 20 per cent in 2016- 17.

“The annual recurring financial implication on account of implementation of OROP at the current rate will be approximately Rs 7,500 crore,” the instructions issued by the government said.

While the ex-servicemen community welcomed the instructions, it frowned over the reduction in the annual financial spending. “We welcome this announcement of OROP tables by the government as it is the next logical step. But the devil lies in the detail, and we will have to see the details in the tables to know if our issues have been addressed. The original estimate made by the defence minister was for Rs 8,300 crore. Now, they have brought it down to Rs 7,500 crore, whittled down the amount by Rs 800 crore, which amounts to pinching pennies,” said Wing Commander (retd) C K Sharma, treasurer of the Indian Ex Servicemen Movement.

Despite a demand by protesting ex-servicemen to implement OROP with effect from April 1, 2014, the government instructions added that the arrears will be paid with effect from July 1, 2014 and pegged the arrears till December 2015 at Rs 10,900 crore.

“The total increase in the Defence Budget for pensions is estimated to go up from Rs 54,000 crore (BE 2015-16) to around Rs 65,000 crore (proposed BE 2016-17), thereby increasing the Defence Pension Outlay by about 20 per cent,” the instructions said.

According to the instructions, 86 per cent of the total expenditure on account of OROP will benefit the JCOs/ORs. Payment of arrears will be made by the Pension Disbursing Authorities in four installments, except for family pensioners and pensioners in receipt of gallantry awards, who will be paid arrears in one installment.

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  1. P
    Pkp
    Feb 5, 2016 at 4:02 pm
    Ex servicemen decision is good. Continue protest. MoD (civilian) is cheating the Army persons.
    Reply
    1. P
      Pkp
      Feb 5, 2016 at 10:40 am
      Offers cheated PBOR. So pl divide this exserviceman org
      Reply
      1. R
        Raje
        Feb 3, 2016 at 9:38 pm
        TOIlet paper did not publish this news on their website yet. So ashamed to show NDA govt good deeds.
        Reply
        1. A
          Aman
          Feb 4, 2016 at 1:48 pm
          We were pushing since 40 years and there was no hope OROP even in coming decades. It is this Government who has taken bold step and implemented the OROP. Yes, do agree that everybody needs more money but it is also true that everybody's wishes cannot be fulfilled. Be happy and let us fight further for improvement .
          Reply
          1. K
            Kashmir singh
            Feb 5, 2016 at 12:16 pm
            That,s really exciting
            Reply
            1. P
              Prem Babu
              Feb 5, 2016 at 11:18 am
              First of all it is not OROP, there shouldn't be any grouping X and Y, after retirement, there shouldn't be any disparity in Ex-servicemen after retirement all are to treated as equal, hence OROP should be one and same pension as per rank and length of service, now A Jco/Jwo of Y group is paid less than X group Hav/ Sgt, Even a Naik/Cpl of X group gets Rs.500 less than A Jco of Y group is it justified? Govt wants satisfy the 18% of Officers by deceiving 82% PBOR, the shocking real spine chilling news of 3rd Feb 2016, A JCO and 10 Jawans got buried in snow, how many officers and Nursing officers are affected it, NIL, but Govt gives max MSP to them and the least amout to the real hearos in Defence
              Reply
              1. K
                Karunakaran
                Feb 3, 2016 at 10:53 pm
                The Bullet train to Ahmedabad, the pet project of the current PM, ANNUAL maintenance is almost certainly going to cost Rs 15,000 crores a year!
                Reply
                1. K
                  Karunakaran
                  Feb 3, 2016 at 10:46 pm
                  The Bullet train to Gujjuland, to be paid for all Indian taxpayers, ANNUAL maintenance is almost certainly going to cost Rs 15,000 crores a year! On the other hand the OROP annually will cost only 50% of this. The photoshopped selfie-chaser dokhlabhai has two things to his credit: getting the Vallabh bhai statue made in China, and the Bullet train to Gujjuland for Rs 98,000 crores. On everything else the photoshopped selfie-chaser dokhlabhai and his equally neducated cabinet colleagues have miserably failed. India's economy is gone to the dogs. The only people who praise the photoshopped selfie-chaser dokhlabhai are Gujjus based abroad. Get ready to welcome Mr Nitish Kumar as the next PM. Mr Nitish Kumar has style and he has substance.
                  Reply
                  1. I
                    I S
                    Feb 5, 2016 at 5:20 am
                    Great news and quick implementation Thanks to General Satbir Singh Satta ( Ex 7 Div Arty Cdr) and veterans at Jamtar Mantar Col I S Dhillon Sparrow
                    Reply
                    1. T
                      Tarun Durga
                      Feb 3, 2016 at 4:55 pm
                      TheSe Veterans are being Greedy by asking for scales to match the current ry.No where in the world this happens
                      Reply
                      1. R
                        Raj
                        Feb 4, 2016 at 4:46 am
                        "Now, they have brought it down to Rs 7,500 crore, whittled down the amount by Rs 800 crore, which amounts to pinching pennies, " As a taxpayer of India - I FULLY SUPPORT the Govt "penny pinching" - especially when the Country still has a MIVE fiscal deficit and the Govt has to BORROW money to pay all its bills like OROP and others.
                        Reply
                        1. R
                          Raj
                          Feb 4, 2016 at 4:43 am
                          Not even started building but already you know annual maintenance costs ? WOW! - Did they teach you being this dumb or did you have to practice it ?
                          Reply
                          1. V
                            Venkataraman Jagadesan
                            Feb 4, 2016 at 5:14 pm
                            We should thank the PM for full filling the promise he had given. The ex-servicemen should wait and should not be in a hurry to criticise the present Govt: since they have given them what they wanted which was denied by the congress party all these years. Jai Hind.
                            Reply
                            1. J
                              Joseph C
                              Feb 3, 2016 at 10:05 pm
                              Yes, who said freedom is cheap ? ..may be the ministers can take a ry cut from their 200% hike to old ry.
                              Reply
                              1. J
                                JN Tiwari
                                Feb 4, 2016 at 6:25 am
                                "Now, they have brought it down to Rs 7,500 crore, whittled down the amount by Rs 800 crore, which amounts to pinching pennies, " As a taxpayer of India - I FULLY SUPPORT the Govt "penny pinching" - especially when the Country still has a MIVE fiscal deficit and the Govt has to BORROW money to pay all its bills like OROP and others. I would advise that people who are opposing OROP should also suggest Govt to stop recruiting Armed Forces so that no financial burden will be there. They are not realising that this burden has pilled up because previous Govt has not implemented it since long. Had it be done the burden would have been less. God only can help the country. If you donot compensate Armed Forces soldiers then no one will join. They only public will make hue and cry.
                                Reply
                                1. K
                                  Krishne Gowda
                                  Feb 24, 2016 at 8:25 am
                                  group x and y are more disparity if a soldier of any wing is well qualified in the field of technical or non technical are coming under y group .before joining to defence if a recruit is under metric or over metric there was a group as per their education . now in OROP it is all obolished , now at least justify the matter .prescribed education is mandatory for perticuler trades which come under B group .now such all technical trades come under y group where as remaining all groups like C D E F G H which were not prescribed any educati0n , please look this matter
                                  Reply
                                  1. M
                                    M.P.Rao
                                    Feb 3, 2016 at 4:37 pm
                                    This Govt has been sincere in attending to the problems of armed forces and gone long way to meet their demands which were lying in cold storage during the previous regime.
                                    Reply
                                    1. A
                                      amrit raj
                                      Apr 13, 2016 at 6:10 am
                                      Sir,lt;br/gt;If retired person's has death .and his wife is taking pension than his wife can take benefits of orop or not
                                      Reply
                                      1. R
                                        R Pathy
                                        Feb 5, 2016 at 1:30 am
                                        May be the diluted OROP, we can welcome the efforts being taken by the Government now and the issues will be sorted out in the due course. SOMETHING IS BETTER THAN NOTHING.....
                                        Reply
                                        1. R
                                          rpm
                                          Feb 4, 2016 at 5:11 am
                                          The only way to contain pension expenses is to start contributory pensions. Also reduce populist recruitments like Hindi translators etc. Also reduce civilian recruitment which brings down the discipline and efficiency inside the forces.
                                          Reply
                                          1. D
                                            darshan singh
                                            Feb 20, 2016 at 6:31 am
                                            my question is very simple as per orop sub maj pension is 11305 and hony lt pension is 11770 in 15 years then 26 years service in both rank so many difference orop declared by govt sub maj 12565 and h/lt 16090 sub maj rank in indian army is spinal cord of army what is the justice pl look up this matter
                                            Reply
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