Resettlement Management And Welfare Of Army Pbor

Published Date: 02 Nov 2017

India had in the past a well protected economy with high rate of regulations and controls. The workers were also placed in a protected environment under the roof of many social security legislations and other effective industrial laws. After the adoption of the new economic policy in 1991, Indian labour force is almost out of these ‘protectionism’ and now exposed to the challenges of globalization, privatization and liberalization. In this changed economic scenario, major parts of the labour force in the organized as well as unorganized sectors are exposed to many unforeseen casualties. A growing number of workers are excluded from the labour market on account of the mismatch occurring between the requirements of the market and the skills they possess. This is equally true for retired army PBOR searching for a second job after retirement as globalisation has brought the issue of education and skills development to the centre of the employment scene. The scope for absorption of retired army PBOR in manufacturing or services would depend on educational attainments and skills acquired Therefore, re-employment of retired army PBOR after retirement poses a serious challenge with the advent of globalization. Hence, it is necessary to intensify the resettlement training as a social security benefit to face the challenges of globalisation especially employment.

The chapter is organised as follows: Section 4.1 examines the social security and defence expenditure in India. Section 4.2 compares the Defence budget with the other economic parameters. Section 4.3 evaluates the resettlement management mechanism, resettlement management at Central and State level, social security programmes & welfare policies of Ministry of Defence. Section 4.4 explains the resettlement procedure for army PBOR. Section 4.5 discusses the resettlement training programs for army PBOR. Section 4.6 compares resettlement process of veterans/ESM in other countries. Section 4.7 analyses the various welfare schemes for retired / serving ESM/PBOR [1] . Section 4.7 examines the Ex-Servicemen Contributory Health Scheme (ECHS). Section 4.8 analyses the pension structure of army PBOR. Section 4.9 concludes the study.

4.1 SOCIAL SECURITY & DEFENCE EXPENDITURE IN INDIA: STRUCTURE & TRENDS -

The expenditure [2] (public) on social security and welfare is an important component of the non plan expenditure [3] on social services. It includes four sub-major heads, viz.,

Social security and welfare Programs, including Government employee insurance schemes, pensions under social security schemes.

Rehabilitation, which includes rehabilitation of repatriates, displaced persons;

(iii) Social welfare, including child welfare, women’s welfare, welfare of handicapped, welfare of aged, infirm and destitute; and

(iv) National Social Assistance Program, including Old Age Pensions scheme, Family Benefit Scheme, Maternity Benefit Scheme.

4.1.1 STRUCTURE OF DEFENCE BUDGET IN INDIA -

Defence budget is also a non plan expenditure part of central budget. The allocations [4] for three armed forces i.e. army, navy and air force are included in the budget. In defence spending the 40 odd Ordnance Factories and 50 odd laboratories working in defence related research and development are also included in the name of Defence Research and Development Organisation (DRDO). The budget, however, does not include defence pension (which used to be part of the Defence budget till late 1990s) and civil estimates of the MOD. The later consists of allocations on MOD Secretariat, Defence Estates Organisation, Coast Guard Organisation, Jammu and Kashmir Light Infantry (JAKLI), Armed Forces Tribunal and Canteen Stores Department among others. In addition to the above heads of expenditure, there are also some other areas which are related to defence but do not come under the Ministry of Defence's purview. Rather they are distributed in other central departments/ministries. The bulk of these expenditures come under the Ministry of Home Affairs' (MHA) Police fund, majority of which is spent on paramilitary forces (such as Central Reserve Police Force, National Security Guard, Border Security Force, Indo-Tibetan Border Police, Assam Rifles and Sashastra Sima Bal), and on boarder management and costal security. The Ministry of Road Transport and Highways (MORTH), which is responsible for construction of civil road infrastructure also handles some of the defence and strategic infrastructure through its budget for Border Roads Development Board (BRDB). The BDRB although gets budget from the MORTH, for all practical purpose, it functions under the administrative control of MOD. The Board is responsible for developing strategic roads in the border areas close to Pakistan, China and Bangladesh.

However, there are two types of expenditures which are completely firewalled from the public. These are related to nuclear weapon and military space programmes. The budget for the nuclear programme is clubbed in the budget of the Department of Atomic Energy (DAE) which is similar to the practice in USA, while the budget for military space programme is included in that of Department of Space (DOS).

Like any budget defence budget has two parts i.e. is revenue expenditure and capital expenditure. The revenue expenditure consists expenditure on pay & allowances, transportation, revenue stores (like ordnance stores, supplies by Ordnance Factories, rations, petrol, oil and lubricants, spares, etc.), revenue works (which include maintenance of buildings, water and electricity charges, rents, rates and taxes, etc.) and other miscellaneous expenditure. The capital expenditure includes expenditure on land, construction works, plant and machinery, equipment, tanks, naval vessels, aircraft and aero engines, dockyards, etc.

4.1.2 TRENDS IN SOCIAL SECURITY & DEFENCE EXPENDITURE IN INDIA -

As it is evident from the literature review that the globalisation affects both negatively and positively the social security spending capacity of a welfare state (see chapter -2, section 2.1). In case of India as a welfare state, it is necessary to look into the trends in social security expenditure since 1991 due to pursuance of LPG policy.

Further, an analysis of the trend in social spending reflects the stages of development of the social security and welfare and also reveals the importance given to social security and welfare. More particularly, the examination of the proportion of social security and welfare expenditure in non developmental and developmental expenditure would reveal the trend of social security and welfare towards the cause of promoting the welfare.

An analysis of government expenditure from 1990-91 to 2010-11 in the table 4.1, reveals that it has increased from Rs. 143195.6 crores to Rs. 1943008 crores. Among the items of non-developmental expenditure, Social Security and welfare expenditure has increased from Rs. 2438.23 crores to Rs. 38787.47 crores during the above said period. The expenditure on social security and welfare in developmental expenditure for the same period increased from Rs. 1434.94 crores to Rs. 55623.19 crores.

Table 4.1

Combined Revenue and Capital Expenditure of the Centre and the States on Social Security & Welfare

(Rs. crore)

Year

TOTAL EXPENDITURE (A+B)

NON-DEVELOPMENTAL EXPENDITURE

DEVELOPMENTAL EXPENDITURE

TOTAL NON-DEVELOPMENTAL EXPENDITURE

1. Social security & welfare

TOTAL DEVELOM ENTAL EXPENDITURE

1. Social security & welfare

1990-91

143195.6

69195.35

2438.23

74000.28

1434.94

1991-92

165023.75

81027.86

2705.14

83995.89

1813.02

1992-93

187094.79

97063.44

3210.66

90031.35

1845.88

1993-94

212556.27

113602.15

3214.63

98954.12

2201.23

1994-95

244327.41

128717.86

3637.96

115609.55

2760.74

1995-96

279663.1

153144.67

5454.52

126518.42

3424.57

1996-97

311053.3

167219.38

5471.2

143833.92

4211.11

1997-98

357376.8

193466.91

6096.83

163909.86

4638.44

1998-99

427751.6

236854.54

7247.29

190897.08

5143.72

1999-00

495617.3

277014.08

8849.78

218603.21

4591.14

2000-01

534944.4

298848.31

8381.79

236096.04

6625.05

2001-02

590451.3

336873.24

8345.76

253578.03

6825.78

2002-03

640169

368211.25

8226.71

271957.79

6563.63

2003-04

729842.6

401176.55

8628.29

328666.09

8561.95

2004-05

799197.2

456405.82

9899.88

342791.42

10352.49

2005-06

909473.9

491413.25

11991.12

418060.65

15108.72

2006-07

1064457

545347.49

12728.7

519109.75

18225.68

2007-08

1221437

600105.49

24709.25

621331.81

24452.09

2008-09

1492017

721408.04

34543.75

770608.94

33768.59

2009-10

1802652

889769.31

36372.74

912883

54165.15

2010-11

1943008

952152.5

38787.47

990855.63

55623.19

Source - Indian Public Finance Statistics, GOI (Various Issues)

Table 4.2 Social security & welfare (Non dev.) expenditure

Year

GDP(Constant prices 1999-00)

GE

NDE

Social security & welfare (Non dev.) expd.

As % GDP

As % of total Govt. expenditure

As % of Non Dev. expenditure

1990-91

1193650

143195.6

69195.35

0.20

1.70

3.52

1991-92

1206346

165023.75

81027.86

0.22

1.64

3.34

1992-93

1272457

187094.79

97063.44

0.25

1.72

3.31

1993-94

1333123

212556.27

113602.15

0.24

1.51

2.83

1994-95

1421831

244327.41

128717.86

0.26

1.49

2.83

1995-96

1529453

279663.1

153144.67

0.36

1.95

3.56

1996-97

1645037

311053.3

167219.38

0.33

1.76

3.27

1997-98

1711735

357376.8

193466.91

0.36

1.71

3.15

1998-99

1817752

427751.6

236854.54

0.40

1.69

3.06

1999-00

1952035

495617.3

277014.08

0.45

1.79

3.19

2000-01

2030710

534944.4

298848.31

0.41

1.57

2.80

2001-02

2136650

590451.3

336873.24

0.39

1.41

2.48

2002-03

2217134

640169

368211.25

0.37

1.29

2.23

2003-04

2402728

729842.6

401176.55

0.36

1.18

2.15

2004-05

3242209

799197.2

456405.82

0.31

1.24

2.17

2005-06

3544348

909473.9

491413.25

0.34

1.32

2.44

2006-07

3872974

1064457

545347.49

0.33

1.20

2.33

2007-08

4253184

1221437

600105.49

0.58

2.02

4.12

2008-09

4462967

1492017

721408.04

0.77

2.32

4.79

2009-10

4869317

1802652

889769.31

0.75

2.02

4.09

2010-11

5298129

1943008

952152.5

0.73

2.00

4.07

GDP – Gross Domestic Product

GE – Government Expenditure

NDE – Non Developmental Expenditure

Source - Indian Public Finance Statistics, GOI (Various Issues)

Economic Survey 2011-12

In the above table 4.2, the social security as a percentage to GDP has increased from 0.20 percent in 1990-91 to 0.73 percent in 2010-11. However, the social security expenditure in proportion to GDP is increasing but it has remained below 1 percent. Correspondingly, social security expenditure as a percentage to total government expenditure has increased from 1.70 percent to 2.00 percent. For the same period, social security as a percent of non developmental expenditure has increased from 3.52 percent to 4.07 percent. But it has not been consistent over the years.

Figure 4.1 Social security and welfare expenditure

The above figure 4.1 shows that since 1990-91 to 2005-06, there is a downward trend in non developmental and government expenditure. But, from 2006-07 the non developmental and government expenditure is increasing.

4.1.3 BUDGETARY ALLOCATIONS ON DEFENCE EXPENDITURE

The earlier chapter-3 discuss that the retired army PBOR are more vulnerable to globalisation and therefore they need compensation. To understand the impact of globalisation on social security of retired army PBOR (in the form of resettlement training), first it is necessary to examine the trends of Defence expenditure and its comparison with other economic parameters. The table 4.3 and figure 4.2 given below indicates the growth of Defence expenditure since 1990-91 to 2012-13.

Table 4.3 Increase in Defence expenditure

(Rs. Crore)

Year

Defence Expenditure [5] (Actuals)

% Increase in previous year

1990-91

15426.47

7.01

1991-92

16347

5.97

1992-93

17582

7.55

1993-94

21845

24.25

1994-95

23245

6.41

1995-96

26856.22

15.54

1996-97

29505.12

9.86

1997-98

35278.08

19.57

1998-99

39897.58

13.09

1999-00

47071

17.98

2000-01

49622

5.42

2001-02

54266

9.36

2002-03

55662

2.57

2003-04

60066

7.91

2004-05

75856

26.29

2005-06

80549

6.19

2006-07

85495

6.14

2007-08

91680

7.23

2008-09

114223

24.59

2009-10

141781

24.13

2010-11

154117

8.70

2011-12(RE)

170937

10.91

2012-13(BE)

193407

13.15

Source - Indian Public Finance Statistics, GOI (Various Issues)

The Defence expenditure has increased from Rs. 15426.47 in 1990-91 to Rs. 147344 crore for the year 2010-11. From the above table 4.3, it can be seen that the Budget Estimates for the year 2012-13 of the Ministry of Defence is of Rs. 1,93,407.29 crore. Although Defence expenditure is increasing in absolute terms over the years but the percentage increase in previous year has not been consistent. The Defence expenditure in percentage wise grew maximum during the year 2004-2005 i.e. 26.29 percent as compared to the previous year followed by the growth of 2008-09 and 2009-10 whereby the percentage growth was 24.59 percent and 24.13 percent respectively. During the year 2010-11 the percentage growth declined to 8.70 percent as compared to the growth of 24.13 percent of the previous year. In the subsequent years although slight increase is there does not match to the level of 2008-09 and 2009-10.

Figure 4.2 Trends in Defence expenditure

4.2. COMPARISION OF DEFENCE WITH OTHER ECONOMIC PARAMETERS –

Defence expenditure is ordinarily projected in terms of current prices. This is the usual method employed in budgeting and expenditure accounting. However, expressed in these terms, Defence expenditure does not indicate either its capacity to buy Defence capability or the burden it imposes on the economy. Hence, it is desirable to analyse Defence expenditure variously in terms of constant prices, as a percentage of GDP (this reflects true burden of Defence sector), as a proportion of Central Government expenditure and in real terms, that is, of purchasing power.

The below table 4.4 shows the proportion of Defence expenditure in proportion to GDP, total government expenditure and non-developmental expenditure.

Table 4.4 Defence expenditure in proportion to GDP, total government expenditure and non-developmental expenditure

Year

GDP(Constant prices 1999-00)a

GE

NDE

Defence expenditure

As % of GDP

As % of total Govt. expenditure

As % of Non Dev. expenditure

1990-91

1193650

143195.6

69195.35

1.3

10.77

22.29

1991-92

1206346

165023.75

81027.86

1.4

9.91

20.17

1992-93

1272457

187094.79

97063.44

1.4

9.40

18.11

1993-94

1333123

212556.27

113602.15

1.6

10.28

19.23

1994-95

1421831

244327.41

128717.86

1.6

9.51

18.06

1995-96

1529453

279663.1

153144.67

1.8

9.60

17.54

1996-97

1645037

311053.3

167219.38

1.8

9.49

17.64

1997-98

1711735

357376.8

193466.91

2.1

9.87

18.23

1998-99

1817752

427751.6

236854.54

2.2

9.33

16.84

1999-00

1952035

495617.3

277014.08

2.4

9.50

16.99

2000-01

2030710

534944.4

298848.31

2.4

9.28

16.60

2001-02

2136650

590451.3

336873.24

2.5

9.19

16.11

2002-03

2217134

640169

368211.25

2.5

8.69

15.12

2003-04

2402728

729842.6

401176.55

2.5

8.23

14.97

2004-05

3242209

799197.2

456405.82

2.3

9.49

16.62

2005-06

3544348

909473.9

491413.25

2.3

8.86

16.39

2006-07

3872974

1064457

545347.49

2.2

8.03

15.68

2007-08

4253184

1221437

600105.49

2.2

7.51

15.28

2008-09

4462967

1492017

721408.04

2.6

7.66

15.83

2009-10

4869317

1802652

889769.31

2.9

7.56

15.31

2010-11

5298129

1943008

952152.5

2.9

7.58

15.47

GDP – Gross Domestic Product

GE – Government Expenditure

NDE – Non Developmental Expenditure

Source – a- Economic Survey 2011-12

b- Indian Public Finance Statistics, GOI (Various Issues)

The Defence Budget for 2010-11 is 2.91 percent of the GDP in comparison to 1990-91 i.e., 1.29 percent. Since 1997-98, Defence expenditure as a percent of GDP has been fluctuating.

Figure 4.3 Defence expenditure in comparison to CGE and GDP

Similarly, Defence expenditure as a percentage of total Central Government expenditure for the year 2010-11 is 7.93 percent which is declining in comparison to the year 1990-91 i.e., 10.77 percent. The figure 4.3 shows that Defence expenditure has not been consistent over the years.

Figure 4.4 Defence Expenditure in comparison to non developmental expenditure and total government expenditure

The figure 4.4 shows that defence expenditure as a percent to non developmental expenditure and as a total government expenditure is on downward path.

4.3 RESETTLEMENT MANAGEMENT, SOCIAL SECURITY PROGRAMMES & WELFARE POLICIES OF MINISTRY OF DEFENCE -

The Defence forces as a part of organized sector are facing a shortage of officers and PBOR. There is, thus, a need to make the fighting services more attractive. One measure to make the services more attractive is to ensure the resettlement of servicemen on retirement. Good human resource management demands immediate action to assist those retiring in a smooth transition to the next phase of their life. A satisfied retired soldier will be the best advertisement, particularly in rural areas, for motivating the youth to join the Armed forces [6] . Therefore, it becomes important to look into the mechanism for resettlement management, social security and welfare policies for them.

As per the website of MOD, every year about 60,000 service personnel are retired or released from army, navy and air force and about 2, 00,000 who form their families and dependents. The number of ESM [7] is increasing with the passage of time. There are about 22 lakh ESM and about 5 lakh Widows registered as on May 2011. Both the Central and the State Governments are jointly responsible for their resettlement and welfare. The annual retirement for all ranks is shown in the table 4.5 below –

Table 4.5 Annual Retirement/Wastage (Officers/Junior Commissioned Officers/Other Ranks) in India

Annual Retirement/Wastage (Officers/Junior Commissioned Officers/Other Ranks) in India

(2001 to 2004)

Year

Army

Navy

Air Force

Total

2001

74407

3550

3511

81468

2002

34834

3148

6517

44499

2003

72096

2529

6039

80664

2004*

27997

1541

1858

31396

* Data for the year 2004 is for January to June 2004.

Source: Indiastat

The bulk of ESM are army PBOR and a large proportion of annual retirees is in the age group of 35-40 years. They are in the prime of their life at the time of their retirement and have maximum financial and domestic responsibilities remain unfulfilled. The resettlement and welfare problems of army PBOR, therefore assume greater urgency and importance. While in the service, these personnel are trained not merely for their role as soldiers but also in various trades and skills. In order that their talents are utilised in national interest, it is of paramount importance that they are resettled in civil life through employment or self-employment. Realising the need relating to resettlement and welfare of army PBOR, the MOD is providing social security to army PBOR like insurance, medical, housing, education, skills, re-employment, and pension schemes at the time or after the retirement.

4.3.2 INSTITUTIONAL MECHANISIM FOR RESETTLEMENT, SOCIAL SECURITY & WELFARE OF ARMY PBOR –

To give focused attention to the welfare programmes for ESM and their dependants including pensionary benefits, re-employment and rehabilitation, Government of India under the National Common Minimum Programme (NCMP), envisaged setting up of a new Department  of Ex-Servicemen Welfare in the Ministry of Defence.  The new Department called "Department of Ex-Servicemen Welfare" was created on 22nd September, 2004.  The Department has been allocated the following broad functions to look after:-

Functions of Dept. of ESM

Re-settlement & Welfare of ESM ECHS Matters of DGR & KSB Pensions

Figure 4.5 Functions of Department of ESM

(a)  All aspects of resettlement and welfare of ESM and their dependents, including liaison with State governments.

(b)  Ex-Servicemen’s Contributory Health Scheme (ECHS).

(c)  Matters relating to the Directorate General of Resettlement and Kendriya Sainik Board.

(d)  Administration of –

i.  The pension regulations for the army, 1961

ii. The pension regulations for the air force, 1961

iii.   The navy (pension) regulations, 1964, and

iv.   The entitlement rules to casualty pensionary awards to the Armed Forces personnel, 1982.

To fulfill all these functions, there is an institutional mechanism which is outlined below in figure 4.6 -

Government of India

(Ministry of Defence)

 

Department of

Ex-Servicemen (for Social Security)

Pension Division for other Social Security Programmes

Resettlement Division

State Level

Central Level

Rajya Sainik Board (RSB)

Zila Sainik Board (ZSB)

Kendriya Sainik Board (KSB)

Directorate General of Resettlement (DGR)

Figure 4.6 Institutional mechanism for resettlement, social security and welfare of army PBOR

Source - Author

The figure 4.6 shows that the Department of Ex-Servicemen Welfare is the apex wing of the Government in the Ministry of Defence to formulate   various policies for the welfare and resettlement of army PBOR in the country.

The department has two divisions, resettlement and pension Division. The resettlement division at central level has 3 attached offices namely, Kendriya Sainik Board (KSB), Directorate General of Resettlement (DGR) and Ex-servicemen Contributory Health Scheme (ECHS). The office of DGR implements various policies/ schemes/ programmes like pre and post retirement training, re-employment, self employment etc. The DGR is assisted in its task by 5 Director Resettlement Zones at each of the 5 Commands. The KSB is responsible for the welfare of ESM/PBOR and their dependents and also for the administration of welfare funds. At the State level the KSB is assisted in its task by 32 Rajya Sainik Boards (RSB) and 371 Zila Sainik Boards , which are under the administrative control of respective State Governments/ Union Territory Administrations. ECHS takes care of the health and medical needs of army PBOR and their dependents. On the other hand, the pension division distributes the social security benefits in the form of pension, gratuity, provident funds and other retirement benefits. This institutional mechanism is inter-related with each other in the following figure 4.7 -

Service HQ’s

Central Level

Ministry of Defence

Dept. of ESM

State Govts

DGR

KSB

Director Resettlement Zones

RSB – Dept. of Sainik Welfare

Dir Self Emp

Dir Trg

Dir Empt

Dir S&R

Dir Pub

ZSB – Zila Sainik Welfare Office

Figure 4.7 Inter-Relationship in Institutional Mechanism for Resettlement, social security and welfare of army PBOR

Source - Author

4.3.4 RESETTLEMENT MANAGEMENT AT CENTRAL LEVEL –

At central level, the resettlement [8] management is mainly carried out by DGR. The DGR under the MOD has been set up to look after all matters connected with resettlement and welfare of Ex-Servicemen (including officers), their widows and dependents through employment under government or in public and private sectors, or in land or in industry, etc.; individually or through Co-operative Societies as may be possible. The schemes/activities of the DGR can be specifically categorised under the following figure 4.8:

Schemes/Activities of DGR

Resettlement Self Employment Training Welfare

Figure 4.8 Schemes/activities of DGR

(i) Resettlement of Officers and PBOR

(ii) Self employment of Officers and PBOR

(iii) Vocational training for Officers and PBOR

(iv) Welfare of Officers and PBOR and of the families of serving/deceased personnel

The DGR has five Directorates for the smooth functioning of the resettlement and welfare of Officers and PBOR. They are as follows -

Directorate of Self-Employment – It provides consultancy and guidance in establishing small cottage / rural/ household industries and general assistance in preparation of project reports, allotment of industrial plots / sheds, procurement of raw material, credit facilities and marketing opportunities etc.

Directorate of Employment – It extends employment assistance to released or retired regular officers and to the next of kin of Officers who were killed in active or died in service and for the employment of ESM disabled in War or in harness, other ESM and dependents of those killed in action.

Directorate Resettlement Training – It provides resettlement training of various kinds to Officers, Junior Commissioned Officers, and Other Ranks in the Army and their equivalent in Navy and Air Force.

Directorate Statistics and Records – It collects, maintains and analyzes statistics relating to ESM and retiring servicemen through ZSB and Records Offices in order to help the concerned directorates to plan resettlement programmes for them, and to ensure proper implementation of the various instructions issued by the Government for the benefit of ESM.

Directorate of Publicity – It disseminates, among Defence service personnel and Ex-servicemen, information regarding concessions and facilities provided to Ex-servicemen by Central and State Government, Public Sector Undertakings, local bodies and other organisations in the country. It also publicises the training programmes and other re-settlement schemes organised by DGR. It thus not only helps the affected person to avail of these but also raises the morale of the Officers and men in the Armed Forces by setting their minds at rest about their post-retirement life beside, the Directorate tries to make the community aware of its responsibility towards the re-settlement of Ex-servicemen and highlights the voluntary efforts in this direction

Zonal Resettlement Directorate - The DGR has five zonal resettlement directorates to co-ordinate resettlement work with the State governments and is co-located with each of the five Army Commands Headquarters namely, Pune, Calcutta, Chandimandir, Lucknow and Udhampur. These Directorates are the zonal representatives of the DGR.

4.3.5 RESETTLEMENT MANAGEMENT AT STATE LEVEL -

Though resettlement and welfare of the ESM and their dependents is the joint responsibility of the Centre and the State/UTs, majority of the problems have to be resolved only by the States/UTs as they are functioning at grass root level. The DGR has a network of resettlement organisations in the country down to the district levels assist in the resettlement of ESM. To assist the State Governments in this regard, there are 32 Rajya Sainik Boards [9] and 371 Zila Sainik Boards [10] in the country. Like the Kendriya Sainik Board at the Centre, the Rajya/Zila Sainik Boards are responsible for policy formulation and implementation of resettlement and welfare schemes for ESM, widows and their dependents residing in States/UTs.

4.6 RESETTLEMENT MANAGEMENT OF ESM/VETERANS IN OTHER COUNTRIES –

This section looks into the social security and resettlement mechanism of retired Defence personnel (also known as veterans) in the countries like, Canada, New Zealand, Australia, United Kingdom and United States of America. An examination of the different kinds of resettlement management in other countries is essential for this study.

CANADA -

The issues of resettlement and welfare are administered by the Department of Veterans Affairs which reports to the Minister of Veterans Affairs.

The Department of Veterans Affairs is made up of three branches (Veterans Services Branch, Corporate Services Branch and the Public Programs and Communications Branch); and three divisions (Bureau of Pensions Advocates, Audit and Evaluation, Policy and Planning and Liaison).  The functions of these branches and divisions are as follows -

Veterans Services Branch

The Veterans Services Branch is responsible for delivering pensions and health care, and for providing social and economic support to Veterans and qualified civilians in all regions of Canada. The branch is also responsible for providing emergency and ongoing income support, social counselling and referral services, client counselling on disability pension applications and adjudication of disability pension claims.

Corporate Services Branch

This branch is responsible for ensuring the effective and efficient use and protection of the financial portfolio, human, material and information technology resources; administering property agreements with participating Veterans and assisting Veterans settled under the Veterans' Land Act. The branch also provides support services to the rest of the portfolio, including records and facilities management and video conferencing; business resumption planning; security and emergency preparedness; employment equity and official languages programs; and service standards.

Public Programs and Communications Branch

This branch is responsible for providing and spreading information about the achievements and sacrifices of Canadian Veterans. It also provides information about the services and programs of the department, program and policy changes and new initiatives for Veterans.

Divisions -

Bureau of Pensions Advocates

The Bureau of Pensions Advocates provides free advice, assistance and representation for individuals dissatisfied with decisions rendered by Veterans Affairs Canada (VAC) with respect to their claims for entitlement to disability benefits, or any assessment awarded for their claimed conditions.

Audit and Evaluation

This division is committed to promoting beneficial change through independent reviews of programs and operations for portfolio managers and other stakeholders, and to providing quality review services and reports.

Policy Planning and Liaison

It is responsible for liaison with Veterans' organizations, parliamentary committees, central agencies and also for converting approved policy into legislation and for ensuring that government policy is reflected in legislation and regulations.

NEW ZEALAND –

In New Zealand, the Department of Veterans' Affairs New Zealand is the Government’s principal advisor on veterans’ issues. It is a semi-autonomous body attached to the New Zealand Defence Force. It is responsible for providing advice on, and facilitating the delivery of, a range of services to individual veterans and their families, in recognition of the needs.

AUSTRALIA –

The Australian Government serves the needs of the Veteran and Defence force communities through a number of bodies that make up the Veterans’ Affairs portfolio. The Department of Veterans’ Affairs (DVA) is the primary service delivery agency responsible for developing and implementing programs that assist the veteran and Defence force communities. It provides administrative support to the Repatriation Commission [11] and the Military Rehabilitation and Compensation Commission [12] and is responsible for advising the commissions on policies and programs for beneficiaries and administering these policies and programs. DVA also administers legislation such as the Defence Service Homes Act 1918 and the War Graves Act 1980, and conducts commemorative programs to acknowledge the service and sacrifice of Australian servicemen and women.

UNITED STATES OF AMERICA –

The Department of Veterans Affairs (VA) was established on March 15, 1989. It is responsible for providing federal benefits to veterans and their families. There are 9.4 million military veterans receiving a social security benefit, which means that almost one out of every four adult Social Security beneficiaries has served in the United States military.

VA is the second largest of the 15 cabinet departments and it is headed by the Secretary of Veterans Affairs, VA is responsible for administering programs of veterans’ benefits for veterans, their families, and survivors. The Department has three main subdivisions, known as Administrations, each headed by an Undersecretary:

Veterans Health Administration - (VHA) responsible for providing health care in all its forms, as well as for biomedical research (under the Office of Research and Development, Community Based Outpatient Clinics (CBOCs), and Regional Medical Centers

Veterans Benefits Administration - (VBA) responsible for initial veteran registration, eligibility determination, and five key lines of business (benefits and entitlements) namely, home loan guaranty, insurance, vocational rehabilitation and employment, education, and compensation & pension

National Cemetery Administration - responsible for providing burial and memorial benefits, as well as for maintenance of VA cemeteries

UNITED KINGDOM –

In U.K., the resettlement of retirees is managed by Ministry of Defence. The primary role of the MOD resettlement organisation is to assist service leavers in making a successful transition from a military to a civilian life.

Resettlement process -

It is a phased process including advice, information and training. This includes decisions about housing, education, (their own and that of their children) finances and employment. Resettlement services assist with providing advice, information, guidance and training to prepare and find suitable civilian employment for service leavers. The resettlement support is given through Career Transition Partnership (CTP).

The Career Transition Partnership (CTP) -

The CTP is funded by the MOD to deliver resettlement services to all ranks of the British Armed Forces, to make the transition from military to civilian life as smooth and successful as possible. They teach service leavers the skills they need to produce a CV, learn interview techniques, research the employment market and apply for jobs two years before they leave Service and up to 2 years after they have left.

Personnel who have completed a minimum of four years are entitled to access a range of services provided by the CTP. 

Those who have completed the minimum four years service may access the Employment Support Programme (ESP), which comprises an interview with a career consultant or one-day workshop, and thereafter a job finding service with access to an employment consultant for up to two years post-discharge. Service leavers who have completed a minimum of six years, and all personnel who are medically discharged are entitled to the CTP full resettlement programme.  The latter enhances the ESP through providing access to vocational training, coaching in job interview technique, CV writing, and dedicated career consultancy support aimed at improving the Service Leavers’ employment opportunities. 

In comparison to India, in Canada there is a dedicated ministry for veterans, whereas. USA, New Zealand and Australia have separate departments to take care the issues related to veterans. It shows the preference attached towards the resettlement of veterans in their country whereas in India, the Department of ESM has been newly created.

4.4 RESETTLEMENT TRAINING PROCEDURE & PROGRAMS FOR ARMY PBOR –

The institutional mechanism at Central and State level is responsible for smooth resettlement and welfare of army PBOR. But, how it is to be done? To answer this, it is necessary to understand the resettlement training process and programmes.

Resettlement is a process, which not only endeavors at smooth second-career transition but also attempts to bear the jerks of transition itself by way of institutional counseling, guidance, training and liaisoning.

In case of army PBOR, as they have to work away from their family for the most part of their career; the requirements of their job make them to retire early and, finally, which is also crucial in as much as that a great many of their socio-economic obligations, such as education, marriage and employment of the children. etc. To meet their financial commitments, they have service pension and returns on investments of the terminal benefits. Most of the time, the monthly income is not sufficient to discharge their financial responsibilities. It is imperative that they join some vocation as a second career to supplement their income. In view of this it is necessary to understand the resettlement procedure of army PBOR.

4.4.1 RESETTLEMENT PROCEDURE OF ARMY PBOR -

The resettlement procedure is outlined in figure 4.9 below –

Figure 4.9 Resettlement procedure for army PBOR

Source - Author

4.5 RESETTLEMENT TRAINING PROGRAMS FOR ARMY PBOR–

Army PBOR personnel constitute a very valuable disciplined, well-trained and dedicated talented pool which should be utilized for nation building. It becomes necessary to re-train army PBOR so that after their retirement they could find suitable employment in the civil sector or engage themselves in some self-employment ventures. Therefore, the resettlement of army PBOR is significant. The training directorate of DGR is entrusted with the responsibility to train officers and PBOR for their resettlement. This is sought to be achieved through the following modalities:

(a) Seeking suitable employment for the ESM as also upgrading their skills by imparting necessary training, to prepare them to take on the new assignments/ jobs.

(b) Constant endeavour to provide employment opportunities in government/ quasi government/ public sector organizations.

(c) Pro-active action, to facilitate re-employment of the ESM in the Corporate Sector.

(d) Providing jobs through schemes for self employment.

(e) Assist in entrepreneurial ventures and setting up small scale industries.

We can put these aspects into the following figure 4.10 to classify the ways of resettlement programmes for PBOR.

Ways for Resettlement of PBOR

Training Programs Reservation of posts Schemes for Self employment Assistance in Entp.

Figure 4.10 Ways of resettlement of PBOR

Let us take the aspects of resettlement in detail -

TRAINING PROGRAMMES:  NEED & TYPES -

Since retirement of service personnel is due to compulsions of service, it is necessary to assist them in making a smooth transition to the civilian mainstream. Due to various reasons all personnel who retire do not seek reemployment. Some look for self employment avenues. Others show interest in training opportunities to prepare themselves for resettlement. Whatsoever be the mode of resettlement that PBOR seeks, the fact remains that all of them look for a second career. Equipped with an exemplary sense of discipline and special skills they deserve to be employed in some gainful activity. The government have, therefore, formulated training programmes and schemes to ensure that their skills are channelized in to constructive work and they get properly resettled in civil life. However, the training and skills acquired by them in the Armed forces are not always of direct relevance to the requirements of civil sector. In order to equip retiring service personnel for employment, suitable training programmes are organised.

DGR is the nodal agency of the country for resettlement training of retiring service personnel from the army, navy and air force. The conduct of training programmes for the resettlement in a civil life is one of the most important activities of DGR. To improve the prospects of resettlement by way of employment or self-employment, training is imparted to PBOR. Training Directorate of DGR is responsible for organising training of Officers and PBOR of the three services to prepare them for their resettlement after retirement. This training is organised in diverse fields at various government (Central and State), semi-government and private Institutes spread all over India.

Courses are being organised on various disciplines to provide opportunities to retiring service personnel to prepare for employment or self-employment. The courses are reviewed yearly to ensure their relevance in the prevailing job market. The below figure 4.11 shows training schemes are presently being operational for retiring service personnel -

Types of Resettlement Training / Pre-Release Training

Officer’s Training PBOR Training ESM Training

Pre Release Training Pre cum Post Release Training

ITI Training On the Job Training Vocational Training

Figure 4.11 Types of Resettlement Training / Pre-Release Training

Officers’ Training : 

The DGR organises employment oriented training programmes for officers to enhance their qualifications and enable them to seek suitable employment after retirement.  The resettlement training programmes range from vocational courses of three months’ duration to degree /diploma courses, via distant learning programme of one to three years duration.  The courses are conducted in multifarious fields like Information Technology, Security Services, Entrepreneurship Development, Business Administration, Personnel Management, Hotel Management, Tourism, Human Resources Development, Law, Insurance and miscellaneous topics.  In order to meet the aspirations of retiring officers management courses of six months duration have been introduced at Management Development Institute, Gurgaon and Indian Institute of Management, Ahmadabad, Indore, Lucknow, Narsee Monjee Institute of Management Studies, Mumbai, XLRI, Jamshedpur and Amity University, Noida.

Specifically, to provide resettlement opportunities to senior officers of the rank of Brigadier and above and their equivalents, DGR has also introduced Independent Directors’ Course at MDI Gurgaon, Management of NGO’s at IFIM, Bangalore and management of academic institutions at Amity Institute of Education and Training, NOIDA. Seafaring courses are also conducted for induction of Officers into merchant navy and aviation industry respectively.

Besides this, especially designed two week programmes in Second Career Transition have also been introduced for officers looking to build successful new careers in the corporate/self entrepreneurial sectors.  These above courses are aimed towards good job placements in the corporate sector. 

II. PBOR Resettlement Training Programmes -

For PBOR resettlement, the DGR conducts the following two types of training programmes for PBOR -

Pre-release Training Programmes -

Pre-release training scheme is the one in which army personnel complete full training during their service period. All courses except Industrial Training Institute (ITI) courses of 2 Years duration are covered under this scheme.

A pre -release resettlement training programmes for PBOR and their equivalent are carried out in diversified fields for a duration of up to one year in government, semi-government and private institutes spread all over the country.  The salient fields covered are Security Services, Fire protection, Management, Information Technology & Computers, Travel & Tourism including Adventure Tourism, Entrepreneurship & Small Business Management, technical (including medical) trades, non-technical trades, secretarial support services, agro based industry, vocational courses like poultry, dairy farming, bakery, printing, vehicle repairs, legal assistance etc.

The courses for PBOR under the pre-release training programmes are divided into three categories i.e. Industrial Training Institutes (ITI), On the Job Training (OJT) and Vocational Training (VT) courses.

ITI Courses –

These courses are run by approximately 410 ITI’s located all over the country. Two types of courses are conducted under this type, i.e. two year courses and one year courses.

OJT Courses -

The course is conducted for nine selected trades for duration of nine months.

VT Courses -

These courses, approximately 350 in number, are of short duration ranging from 3 weeks to 24 weeks and are conducted throughout the year.

Pre-cum-post Release Training Scheme:

This scheme covers course in which the duration of the course is of 2 years. Half of the training period is before release/retirement and the balance half is post release/retirement. ITI course of 2 years duration are covered under scheme.

New Initiatives by DGR to resettle PBOR -

Due to the higher employment potential as a security guard for retired army PBOR of Infantry and Artillery, DGR is conducting increased number of security courses at all Regimental Centers. However changing careers after retirement to civil sides is a challenge, especially after leaving the armed forces after many years, some of the areas where the army PBOR lacking is:

(a) Lack of computer literacy.

(b) Lack of communication skills.

(c) Limited knowledge of changes in the civil environment.

(d) Ability to seamlessly transit to the civil jobs.

To solve these issues, DGR has taken steps to educate the retiring personnel by conducting the courses like basic computer literacy, communication & personality development and financial programme in the Regimental Training Centres. Three day capsule programme on Second Career Transition/Preparation have also been introduced for retiring PBOR in order to arm them with sufficient information for a smooth transition to a second career in the civil market. 

However, the courses are reviewed every year to include courses in new fields based on the participation in current requirements of civil market and corporate world and also to delete obsolete courses. But still the majority of army PBOR are employed as security a personnel which is proved in the chapter-5, section 5.4.

Ex-Servicemen (ESM) Training :  

This scheme was introduced in the year 1983-84 and primarily meant for those ESM who could not avail the facility of resettlement training while in service and is extended to the widows/ dependents of ESM. It is organized at various institutes empanelled by the State Government’s Department of Sainik Welfare/ Zila Sainik Welfare Office and approved by DGR to enhance their qualifications. Under this scheme, funds are allotted to RSB’s for conducting vocational training for ESM in their States. 

The details of Defence personnel imparted resettlement training in various fields during the last few years are as under in the following table 4.6 -

Table 4.6 Defence personnel imparted resettlement training in various fields

Resettlement Training Imparted

PBOR Training

Years

Officers Trg

Vocational Trg

On the Job Trg

ITI Trg

PEXEM [13] 

ESM Trg

Total

1990-91

 1022

10480 

1456 

960 

2611

192 

16721

1991-92

 883

 8445

 1467

 1235

3264

 560

15854

1992-93

 774

 8645

 1786

 1200

2465

 395

15265

1993-94

 848

 8031

 1338

 1140

1850

 376

13583

1994-95a

 633

 3284

 1123

 1070

680b

 46

6836

1995-96

1061

5200

1178

1027

NA

8466

1996-97

1145

5692

1360

1250

NA

9447

1997-98

1150

5114

1228

1324

404

9220

1998-99

606

5824

1419

1292

333

9474

1999-00

431

4563

1437

1847

385

8663

2000-01

387

5718

1452

2675

58

10290

2001-02

409

3518

1363

1510

421

7221

2002-03

353

2958

1027

1510

856

6704

2003-04

583

4019

1027

2821

1102

9552

2004-05

679

3016

1103

2905

1102

8805

2005-06

994

5066

NA

NA

NA

6060

2006-07

1345

7369

NA

NA

279

8993

2007-08

NA

14503

NA

NA

411

14914

2008-09

NA

32398

NA

NA

1432

33830

2009-10

NA

31151

NA

NA

892

32043

2010-11

NA

18696c

NA

NA

911

19607

2011-12

793

20381d

NA

NA

261

21435

a-Figures upto December 1994

b-Scheme abandoned in 1994-95

c- Figures upto January, 2011

d- Figures upto January, 2012

Source – Annual Report of Ministry of Defence, GOI (Various Issues)

B. RE-EMPLOYMENT -

Provision of re-employment is the second type of resettlement program/ assistance given by MOD. Employment constitutes the principal mode of resettlement of ESM particularly so in the case of personnel retired or released from the Armed Forces, since 90 percent of the personnel released/retired from the Army are in the non-technical categories. For this purpose, the government both at the Centre and the State levels has granted a number of concessions for ESM including reservation of posts and relaxation in the age and educational qualifications [14] , priority in employment to the disabled ESM and dependants of deceased service personnel on compassionate grounds.

Rajya/Zila Sainik Boards are the nodal agency where the PBOR are registering their name for job in government/Public Sector Undertakings/banks. The PBOR of Southern Command, Pune are registered with the ZSWO, Pune for the same.

Reservation in Government Jobs:  

The reservation of posts under the Central and State governments has been provided in the below table 4.7 –

Table 4.7 Reservation of posts in the government departments

Posts

Government Departments

PSUs/ Nationalised Banks

Group ‘A’ & ‘B’ (Posts of Assistant Commandants in Para Military Force)

10 %

NIL

Group ‘C’

10%

14.50 %

Group ‘D’

20%

24.50 %

The Central Government has reserved 10% of Group ‘C’ posts and 20% of Group ‘D’ posts for ESM, while central PSUs and nationalised banks provide 14.5% reservation in Group ‘C’ and 24.5% in Group ‘D’ posts.  10% posts of Assistant Commandants in paramilitary forces are also reserved for ESM. In Security Corps, 100% vacancies are reserved for ESM.  In addition, most of the State Governments were providing reservations to ESM in state government jobs.  But there is no uniformity; the percentage of reservation varies from state to state.

Inspite of these reservations, due to downsizing in government and advent of multi tasking staff, the employment opportunities for ESM in government/ semi-government sectors have reduced lately. It can be considered as an impact of globalisation on welfare state.

The details of ESM, who have been provided employment/placement through DGR and ZSWO offices in the States since 1991 is given under:

Table 4.8 Placement of ESM (PBOR)

PLACEMENT [15] OF ESM (PBOR)

Years

Central Government

%

State Government

%

Private Sector

%

Security Agencies [16] 

%

Total

1990-91

6121

36.45

7731

46.03

2942

17.52

NA

NA

16794

1991-92

5505

39.40

5487

39.27

2981

21.33

NA

NA

13973

1992-93

5172

33.19

6114

39.24

3647

23.40

650

4.17

15583

1993-94

4977

24.95

5678

28.46

5802

29.08

3494

17.51

19951

1994-95

5080

23.28

4962

22.74

5628

25.79

6150

28.19

21820

1995-96

5385

22.84

4976

21.11

4390

18.62

8821

37.42

23572

1996-97

4023

17.39

4815

20.81

5424

23.44

8873

38.35

23135

1997-98

5188

28.11

2823

15.30

3306

17.91

7140

38.68

18457

1998-99

3992

17.30

2529

10.96

2738

11.87

13810

59.86

23069

1999-00

4035

22.75

2219

12.51

2766

15.59

8717

49.15

17737

2000-01

4982

31.16

2136

13.36

3221

20.15

5650

35.34

15989

2001-02

6844

32.89

2219

10.67

3064

14.73

8679

41.71

20806

2002-03

5513

25.97

3096

14.58

3079

14.50

9543

44.95

21231

2003-04

5459

24.95

2517

11.50

2963

13.54

10939

50.00

21878

2004-05

4999

22.68

2000

9.07

2937

13.32

12110

54.93

22046

2005-06

2436

13.49

607

3.36

1014

5.62

14000

77.53

18057

2006-07

3255

7.51

3937

9.09

2979

6.88

33153

76.52

43324

2007-08

NA

NA

NA

NA

NA

NA

NA

NA

47300

2008-09

NA

NA

NA

NA

NA

NA

NA

NA

51057

2009-10

NA

NA

NA

NA

NA

NA

37689

68.25

55220

2010-11

NA

NA

NA

NA

NA

NA

45856

82.97

55271

2011-12

NA

NA

NA

NA

NA

NA

38278*

NA

NA

*Upto January 2012

Source – Annual Report of Ministry of Defence, GOI, Various Issues

The table 4.8 shows that overall the number of PBOR placed is increasing since 1991. But, there is a decline in the Central as well as State government jobs for PBOR. In the private sector also the same scenario is visible. Whereas, most of the PBOR are placed in security agencies and the proportion is increasing. It shows the impact of globalisation on resettlement of PBOR as most of them are getting employed as a security guard.

Figure 4.12 Total placement of ESM (PBOR)

The above figure 4.12 shows that the rising trend for placement of ESM (PBOR) since 2005-06.

SCHEMES FOR SELF EMPLOYMENT

The DGR has formulated several Self employment ventures for rehabilitation and resettlement of Ex-servicemen and their families. The first four schemes are for ESM/PBOR, scheme five and six are meant for Officers and scheme seven and eight are for widows or disabled ESM. The details of Self-employment schemes are as follows -

Allotment of Army Surplus Vehicles - ESM and widows of Defence personnel, who died while in service, are eligible to apply for allotment of an Army surplus phased out Class V-B Vehicles.

Coal Transportation Scheme - DGR sponsors ESM Coal Transport Companies for providing loading and transportation of coal in various coal subsidiaries of Coal India Limited (CIL). The unemployed retired officers and JCOs registered with DGR, are selected to form ESM Coal Transport Companies and are sponsored to respective coal subsidiaries for five years, extendable by another four years. Presently, 94 such companies are operating under the various coal subsidiaries of CIL. The functioning of these companies is monitored by DGR.

Mother Dairy Milk and Fruit & Vegetables Shops - Junior Commissioned Officers / Other Ranks are allotted Mother Dairy Milk shops and fruit & vegetable shops in the National Capital Region.

Reservation in CSD - The Canteen Stores Department of India (CSDI) has reserved 15% of the 30 selected CSD items and the MOD has reserved 10% of the 262 selected items manufactured by ESM entrepreneurs under the Defence Purchase Programme for which ESM manufacturing units alone are eligible.

Management of CNG Stations in National Capital Region (NCR) - The scheme for management of CNG stations belonging to Indraprastha Gas Limited was launched as a pilot project in July 2001. On success of the pilot project, the scheme has been extended to retired officers.

COCO Retail Outlets of BPCL and IOCL: Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corporation Limited (IOC) are providing employment to Commissioned officers of Defence for managing retail outlets all over India under Company Owned Company Operated (COCO) scheme.

 Coal Tipper Scheme - The widows of Defence personnel, who died while in service due to causes attributable to military service and disabled soldiers also  can be sponsored by DGR for attaching one tipper truck in their name with an ESM Coal Transport Company. The functioning of these companies is monitored by DGR.

Allotment of Oil Product Agencies - Ministry of Petroleum and Natural Gas has reserved 8% of the oil product agencies, i.e. LPG Dealership, Petrol Pumps, Kerosene Distributorship etc. for widows and dependants of those who died due to causes attributable to military service and disabled soldiers with disability of 20 percent and above attributable to military service.

As it is not feasible to provide government jobs to all ESM after their retirement from the Armed Forces, DGR has formulated several schemes for encouraging and giving financial support by way of loans to ESM entrepreneurs intending to set up small and medium industries.

ENTREPRENEUR SCHEMES

A number of ESM/PBOR prefer to settle down in their native place, therefore self employment schemes has been launched to meet the requirements of such persons. A large number of employment schemes have been launched by the Government of India to enable ESM to resettle themselves in self-employment ventures. The current major entrepreneurial schemes are self employment schemes for ESM like SEMFEX-II, SEMFEX-III and Prime Minister’s Employment Generation Programme (PMEGP). Under these schemes, training and loans are provided at subsidized rates for ventures in rural, semi urban and urban areas in agriculture, industry and service se