The defence ministry has released revised pension to about 2.21 lakh ex-servicemen payable under the One Rank One Pension (OROP) scheme. These pensioners were drawing service/disability pension.
In a statement issued Monday, the defence ministry said that along with the revised amount, the first instalment of arrears was released and credited to their accounts on March 1, 2016.
The remaining 1.46 lakh family pensioners will be paid the revised amount along with the arrears by the end of the month, the statement added.
The total amount of arrears to be paid for the period August 1, 2014, to December 31, 2015, is Rs 10,925.11 crore. The ministry will be incurring an additional amount of Rs 7,488.70 crore every year for implementing the OROP, the statement said.
The payment of arrears and revision of pension under the OROP scheme will be made in four instalments, except for family pensioners and pensioners in receipt of gallantry awards, who will be paid arrears in one instalment, the defence ministry had said earlier last month.
Union Finance Minister Arun Jaitley had also spoken about the allocation of funds in the Union Budget for 2016-17 for implementation of the OROP scheme.
"During the financial year 2016-17, the central government has to make provision for about Rs 1.10 lakh crore in order to meet the liabilities on account of implementation of 7th Pay Commission recommendations and One Rank One Pension (OROP) Scheme," Jaitley had told the Press Trust of India last month.
The Modi government had issued a notification on November 2015, announcing the implementation of the OROP scheme.