Prime Minister Narendra Modi's second Independence Day speech might end up being remembered not for what was in it but for what he left out. That would be a time-bound commitment to implementing the One Rank One Pension scheme, a longstanding demand of military veterans that the Bharatiya Janata Party had included in its election manifesto last year. In a speech that was nearly 90 minutes long, Modi reiterated his government's commitment to the idea of the programme, but failed to say anything beyond the fact that talks on the matter were proceeding.

One Rank One Pension, or OROP, implies paying a uniform pension to personnel retiring in the same rank with the same length of service, irrespective of their date of retirement. At present, pensioners who retired before 2006 draw a lower pension than their counterparts and juniors who retired afterwards.

The reaction was immediate.


The issue is likely to loom large over a speech that featured a long laundry list of accomplishments by the government and a few grand promises. Over the course of two Independence Day speeches, Modi has insisted that his approach would not be to make big announcements, but to implement decisions that had already been made.

"Which government doesn't promise things? Which government doesn't say what it wants to do?" Modi said. "People keep asking why we don't announce new schemes, but it's better that we work on the announced ones."

As it happens, OROP is one of those "announced" promises. Modi himself promised it at an ex-servicemen rally during his election campaign and his government has repeatedly said that the matter would be resolved.

In his speech, Modi reiterated his commitment to the programme.

"The demand for One Rank One Pension has come before every government," Modi said. "All of them made promises. Even after I came, i haven't been able to bring OROP. Today I'm telling every person in the forces, and the 1.25 crore people of Team India, that we have decided to bring in One Rank One Pension. Discussions are under way and in the final stages."


However, that in-principle agreement is not new, and most were expecting something more from the prime minister who has always sold himself as the defender of India's interests, not least the needs of its armed forces. Modi instead, preferred to point out that talks were still underway. "The way that talks are going on, I am expecting something positive," Modi said.


The problem is primarily fiscal. OROP could add an extra Rs 8,400 crore to the exchequer and that is likely to go up over time. Considering this government's fiscal targets and the impending Seventh Pay Commission, managing to pay for OROP is not going to be easy.


Not putting the programme in place will also cause problems, though. The last month has produced audible murmurs from within the armed forces and among the veterans about their expectations from a prime minister who had earned the support of many servicemen in the run-up to the elections. Former service chiefs have even warned of a politicisation of the services in case OROP is not implemented, a dangerous thought. The failure to announce a firm date for the programme during the speech comes as a serious disappointment.