One Rank One Pension, or OROP, implies paying a uniform pension to personnel retiring in the same rank with the same length of service, irrespective of their date of retirement. At present, pensioners who retired before 2006 draw a lower pension than their counterparts and juniors who retired afterwards.
The reaction was immediate.
PM said we accepted #OROP demand, but that happened 17 months back.This is very unfair-Maj General(retd) Satbir Singh pic.twitter.com/jSXStFJTYH
— ANI (@ANI_news) August 15, 2015
PM says difference between his and other govts is that he doesn't only talk he gets things done. 15 months of promises on #OROP I wonder...
— Rahul Kanwal (@rahulkanwal) August 15, 2015
The issue is likely to loom large over a speech that featured a long laundry list of accomplishments by the government and a few grand promises. Over the course of two Independence Day speeches, Modi has insisted that his approach would not be to make big announcements, but to implement decisions that had already been made.
"Which government doesn't promise things? Which government doesn't say what it wants to do?" Modi said. "People keep asking why we don't announce new schemes, but it's better that we work on the announced ones."
As it happens, OROP is one of those "announced" promises. Modi himself promised it at an ex-servicemen rally during his election campaign and his government has repeatedly said that the matter would be resolved.
In his speech, Modi reiterated his commitment to the programme.
"The demand for One Rank One Pension has come before every government," Modi said. "All of them made promises. Even after I came, i haven't been able to bring OROP. Today I'm telling every person in the forces, and the 1.25 crore people of Team India, that we have decided to bring in One Rank One Pension. Discussions are under way and in the final stages."
However, that in-principle agreement is not new, and most were expecting something more from the prime minister who has always sold himself as the defender of India's interests, not least the needs of its armed forces. Modi instead, preferred to point out that talks were still underway. "The way that talks are going on, I am expecting something positive," Modi said.
The problem is primarily fiscal. OROP could add an extra Rs 8,400 crore to the exchequer and that is likely to go up over time. Considering this government's fiscal targets and the impending Seventh Pay Commission, managing to pay for OROP is not going to be easy.
Admiration for @Narendramodi for handling #OROP with statesmanly dignity, firmness, no grandstanding. Shows he's maturing in top job #India
— Shekhar Gupta (@ShekharGupta) August 15, 2015
PM makes no promise on OROP to the armed forces, but says negotiations are moving in a positive direction #India #IndependenceDay
— Suhasini Haidar (@suhasinih) August 15, 2015
Not putting the programme in place will also cause problems, though. The last month has produced audible murmurs from within the armed forces and among the veterans about their expectations from a prime minister who had earned the support of many servicemen in the run-up to the elections. Former service chiefs have even warned of a politicisation of the services in case OROP is not implemented, a dangerous thought. The failure to announce a firm date for the programme during the speech comes as a serious disappointment.
People accused the Cong of being insensitive over the #OROP issue. Same folks today advice a economic and not an emotional approach to #OROP.
— Ayuq (@ThatBrownLady) August 15, 2015
So much for "strong leader" looks like MoD & MoF babus have PM on a short leash. Huge pol blunder on OROP! Vets occupy a special space.
— swati chaturvedi (@bainjal) August 15, 2015
Tax exemptions, including corporate tax foregone, cost exchequer 5 lac crore. #OROP barely 2% of that. Fisc argument wrong
— Minhaz Merchant (@minhazmerchant) August 14, 2015
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