Cabinet Approves Two-year Extension for Agniveers

Syllabus: GS3/Defence

Context

• The Union Cabinet has approved an additional two-year engagement period for the 75% of Agniveers who are not selected for regular service after their initial four-year tenure.

About Agnipath Scheme

• It was introduced in 2022, and is also called the Tour of Duty scheme.
• It is a short-term recruitment scheme for the Indian Army, Indian Navy and Indian Air Force. 
• Under the policy, soldiers (below-officer-rank (PBOR) cadres) called ‘Agniveers’ are recruited for four years, at the end of which only 25% of recruits from a batch are retained for regular service for 15 years.
• Age Limit: Candidates between the age of 17.5 years to 21 years are eligible for enrolling in the Agnipath scheme.
• Pay, Allowances & Allied Benefits: 
  • Year 1 Customised Package- ₹ 30,000/- + allowances.
  • Year 2. Customised Package- ₹33,000/- + allowances.
  • Year 3. Customised Package- ₹ 36,500/- + allowances.
  • Year 4. CustomisedPackage- ₹ 40,000/- + allowances.
  • From the above package, 30% will be compulsorily deposited every month in a corpus, which is matched by the GoI. 
• Seva Nidhi Package: On discharge at four years, the corpus of ₹5.02 lakhs will be matched by the GoI, an amount of ₹10.04 lakhs and accrued interest will be given to the Agniveers. The Seva Nidhi is exempted from Income Tax.
• Agniveers are provided non-contributory life insurance cover of ₹48 lakhs for the duration of their engagement period.
  • They are not eligible for Army Group Insurance Fund (AGIF) schemes/ benefits.
• The scheme provides an avenue to Indian youth, desirous of serving the country to get recruited in the Armed Forces for a short duration.
  • The scheme enhances the youth profile of the Armed Forces.

Additional Engagement Period

• The existing provision to offer regular employment to 25 per cent of Agniveers based on merit will continue. 
• The remaining 75 per cent will be offered a further two years of service.
  • After completing this period, they will be eligible for enrolment as regular soldiers, subject to their willingness and fulfilment of selection criteria.
• Objective: To align the aspirations of Agniveers with the operational requirements and organisational efficiency of the armed forces.
• Service Conditions: The second engagement period will carry higher remuneration, an enhanced Seva Nidhi package and seniority benefits.

Significance of the Scheme

• Reducing the Average Age in Military: There has been a focus within the military to bring down the average age of soldiers, especially within the Army, since the 1980s.
• Reduction in Defence Expenditure: It helps reduce the long-term financial burden of salaries, pensions and other retirement benefits, creating more fiscal space for defence modernisation.
• Technologically Advanced Future: Future wars will be fought with artificial intelligence, autonomous systems, cyber space and space based ISR (Intelligence Surveillance and Reconnaissance).
  • Agnipath in India will ensure a youthful and tech-savvy profile of the armed forces. 
• Employment: This scheme will increase employment opportunities and because of the skills and experience acquired during the four-year service such soldiers will get employment in various fields.
  • This will also lead to availability of a higher-skilled workforce to the economy which will be helpful in productivity gain and overall GDP growth.
• Disaster Management: Military-trained youth can assist in disaster response, rescue operations and emergency management during natural calamities.

Concerns and Challenges

• Career uncertainty: Regular enrolment remains dependent on merit, vacancies and selection criteria.
• Rank disparity: Agniveers entering regular service after six years will be placed one rank below those retained after four years.
• Fiscal trade off: Higher pay, a bigger Seva Nidhi and a longer tenure raise per head cost. The pension liability also returns in the longer run.
• Unresolved skilling question: Exiting at 24 instead of 22 helps, but civilian integration of ex Agniveers through certification and lateral entry remains thin.
• Manpower planning: The Armed Forces must balance youthfulness, experience and long-term institutional requirements.

Conclusion

• The additional engagement period follows a detailed assessment of the Agnipath scheme’s first four years and recommendations from the armed forces. 
• This decision is a continuation of long-term structural reforms of defence forces, aimed at creating a younger, fitter, technologically equipped and future-ready military.

Source: TH