Prime Minister Narendra Modi is likely to announce implementation of the one rank one pension (OROP) scheme concerning ex-servicemen at his rally in Mathura on Monday to mark one year of his government.
Defence ministry sources on Sunday said modalities relating to the long-pending demand of ex-servicemen have been thrashed out.
They said the prime minister could make an announcement about OROP at the rally in Mathura to mark one year of the National Democratic Alliance government.
Finance Minister Arun Jaitley had said on Friday that the OROP concept was "an unambiguous commitment" of the government and it will be implemented.
He said the defence ministry was talking to various stakeholders on the methodology of calculation of pension concerning ex-servicemen.
OROP relates to payment of uniform pension to defence forces personnel retiring in the same rank with the same length of service, irrespective of their date of retirement.
The government had told parliament earlier this year that the principle of OROP for the armed forces has been accepted and it will be implemented once the modalities were approved by the government.