Tuesday, 15 July 2014

Saturday, 12 July 2014. OROP Update - Courtesy Aerial View

Informed sources indicate the following: -

1. CGDA Kum Vandana Srivastava is reportedly of the opinion that the decision to call one or more meetings of the Joint Working Group, of which she is the Chairperson, is now with MoD (DESW) as there isn't any agreement on the methodology to be adopted.

2. CGDA's calculations allegedly have 1.1.2006 as the bottom line and they have produced calulations that make the initial figure of Rs 500 crore the final figure. It appears that repeated and recorded assurances of the former FM and RM that more funds would be provided have either been ignored or misunderstood.

3. Hopefully, to factor in the Rs 1000 crore more allotted in the budget 2014-15 not perplex the CGDA's thought and calculation process.

4. PPOC has reportedly met and decided that CGDA would be requested to convene the Working Committee so that the OROP matter would/could proceed further.

5. It is also reported that Chief of Air Staff has met the Prime Minister a couple days ago and briefed him on OROP and other matters agitating the Veterans.

6. Service HQ maintain that OROP as on 31.3.2014 to be implemented from 1.4.2014 is estimated to require not more than Rs 5000 crore.

Please consider these points also: -

A. In 2011 in submissions to the Koshiyari Committee, the following were brought out: -

By MoD/DESW on 27.5.2011 - Implementing OROP would mean an outgo of Rs 3000 crore based on calculations by CGDA.

By DOE/MoF on 15.7.2011 and 01.8.2011 - If implemented from 1.1.2006 it would mean Rs 1300 crore outgo of which Rs 1065 crore would be for JCOs/ORs & equivalent and Rs 235 crore for officers (the figures quoted by ex-JWO Hardev Singh in his comment to another). DoE/MoF went on to expand the expenditure that would be incurred @ 10% increase per annum as:
  • 2012-13 Rs 1430 crore
  • 2013-14 Rs 1573 crore
  • 2014-15 Rs 1730 crore
  • 2015-16 Rs 1903 crore and
  • by a 25% increase in 2016-17 Rs 2379 crore due to 7th CPC recommendations.
By Dept of Pensions & Pensioners Welfare that civilians demand of OROP (but what rank?) would mean an outgo of Rs 7480 crore in 2011 and Rs 62,218 crore in 2016-17 @ Rs 8000-9000 crore per annum.

B. Cabinet Secretary headed Committee of Secretaries, on 17.8.2012 estimated the annual expenditure to be Rs 1400 crore with an initial outgo of Rs 8000 to 9000 crore.

All anomalies have since been forwarded to 7th CPC for resolution. No comments on the Committee of Secretaries and their acumen.

C. CGDA's figures of Rs 9100 crore appears to be to, quote former US President George W Bush, create shock and awe in the Raksha Mantri.

CGDA has calculated OROP on the basis, for just one example, that all Colonels & equivalents have retired/will retire with 30 years or more of service. This has enabled to arrive at the inflated figure of Rs 9100 crores. It is known that many Colonels & equivalents (and other personnel) quit at the earliest for they will have better prospects & get better salaries in the private sector if they are younger.

D. If Service HQ work on the principle of OROP - One Rank One Pension i.e. no differentiation between X and Y groups for JCO/OR, and every Defence pensioner JCO/OR gets X group pension it should mean an outgo of about Rs 7200 crores.

And if there are different pensions for X & Y groups, the total outgo would be between Rs 4500 and 5000 crores.

P.S: Please divide Rs 1500 crores by 33 lac Veterans to get an approximate idea of the amount that could be paid

Next hearing date ( Rank Pay Case ) is 25 Jul 2014

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