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
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                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
              2. 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
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