With OROP Scheme, government needs to spend Rs. 7500 crores in a year

For the implementation of OROP Scheme which was announced on November 7, the government released detailed instructions.

According to the government, the annual recurring cost of the scheme would be Rs.7,500 crore, pushing the total Defence budget for pensions from Rs.54,000 crore (Budget estimate 2015-16) to around Rs.65,000 crore (proposed estimate for 2016-17).
The arrears for 18 months from July 2014 to December 2015 would be Rs.10,900 crore. According to the government, 86 per cent of the total expenditure on account of OROP would benefit jawans and Junior Commissioned Officers.
Also, the OROP notification had been rejected by ex-servicemen who said that it was in violation of the “accepted definition”. Because of this, the government appointed a one-man judicial commission headed by Justice L.Narasimha Reddy, former Chief Justice of Patna High Court, to look into the issues arising out of the implementation and the report of this to be submitted in six months.
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