Sources said, the government is unwilling to appear as buckling under the veteran's pressure to implement OROP.
Union Home Minister Rajnath Singh today met the Army veterans who are demanding the implementation of One Rank One Pension or OROP and promised a resolution even as a stalemate over a critical clause continued.
Despite Mr Singh's intervention, sources say the government is firm its offer of reviewing pensions every five years while the veterans are demanding an annual review. The review rationalises outdated pension rates, in effect raising them after a particular period.
Talks between the government and the veterans reportedly broke down once again on Thursday night. Upset veterans decided to boycott celebrations today to mark the 50th anniversary of India's successes in the 1965 war against Pakistan.
There had been speculation that a date for implementing OROP could be announced today if an agreement was reached between the government and ex-servicemen.
Last night, the group of ex-servicemen negotiating with the government, walked out of a meeting that they had hoped would finally bring a breakthrough on their demand of two decades. They said they could not accept the government's new proposals on OROP.
Sources said, the government is unwilling to appear as buckling under the veteran's pressure to implement OROP. Defence Minister Manohar Parrikar said on Thursday that PM Modi would make an announcement "as and when time comes".
The government is said to be upset that more and more veterans are joining the hunger strike at Delhi's Jantar Mantar, which began after PM Modi failed to announce OROP in his Independence Day speech on August 15.
OROP will give equal pension to servicemen retiring with the same rank regardless of when they retire.