Military veterans, who have been protesting flash 'victory' signs soon after the government announced the One Rank One Pension scheme. (Press Trust of India)
Three million Indian military veterans won a decades-long battle on Saturday to change the way their pensions are calculated, as the government announced that it would implement One Rank One Pension. The veterans have for decades been demanding that retired officials be paid pensions that are in line with the pay structure of serving officers of a similar rank.
So far, veterans have been paid pensions fixed according to their pay scales at the time of their retirement, which they argue leaves them vulnerable to inflation eroding their livelihoods. They also argue that it is unfair that a soldier who retired recently should receive a larger pension than one who left service earlier.
Despite being a decades-old demand, protests intensified over the past few months, with some ex-servicemen going on a relay fast at Jantar Mantar, in the heart of Delhi. One Rank One Pension (OROP) had also been an election promise made by Prime Minister Narendra Modi, who was elected in 2014.
Under the OROP scheme announced by Defence Minister Manohar Parrikar, ex-servicemen will now receive a pension based on 2013 salaries, to be re-fixed every five years - irrespective of when they retired.
"The main argument for OROP is that the defence personnel retire early and thus are not able to get the benefits of serving till normal retirement age," Mr Parrikar told a press conference in New Delhi.
"Despite the huge fiscal burden, given its commitment to the welfare of ex-servicemen the government has taken the decision to implement OROP," Mr Parrikar added.
The scheme will cost between Rs 8000 and 10,000 crore rupees, he said. Military pensioners will receive arrears dating back to July 2014.
"Now that the issue of OROP is hopefully behind us, I appeal to the veterans to continue to contribute to the vital task of nation building and development," Mr Parrikar said.
Reaction to the government's announcement was mixed, with veterans welcoming the breakthrough in negotiations but also expressing disappointment at certain clauses.
"We welcome the implementation of the scheme," VK Gandhi, general secretary of the Indian Ex-Servicemen Movement, told reporters at the protest site in Delhi. "But this isn't a black and white situation. We want clarification on issues like voluntary retirement," he said.
The government has said that military personnel who take voluntary retirement hereon would not be eligible for the new pensions.
Elsewhere, however, the mood was celebratory. In Jaipur, capital of Rajasthan state, retired army men were pictured exchanging sweets and hugging each other.
But some observers say the move could open the door for workers in other state-run industries, such as railways, to demand similar reforms to their own pension schemes.
India has one of the world's largest armed forces, with around 1.32 million active personnel and 2.14 million reserve forces.
Retirement ages vary by rank, ranging from 56 to 62 years of age, according to the Indian Army website.