Agnipath scheme

• The Defence Minister announced the ‘Agnipath’ scheme for recruitment of youth in the armed forces for four years.
• The process of recruitment will commence in 90 days with a planned intake of 46,000 young men and women this year.
• This will be the only form of recruitment of soldiers into the three defence services from now.

Agnipath Scheme

• Aim- Strengthening national security and providing an opportunity to the youth to serve in the armed forces.
• Recruits under the scheme will be known as ‘Agniveers’.
• After completing the four-year service, they can apply for regular employment in the armed forces.
• They may be given priority over others for various jobs in other government departments.

Benefits of Scheme

• The move is expected to decrease the average age profile of armed forces personnel from the current 32 to 24-26 years over a period of time.
• Enrolment to all three services will be through a centralised online system, with special rallies and campus interviews at recognised technical institutes such as the Industrial Training Institutes, and the National Skills Qualifications Framework.
• Recruitment will be carried out on an “All India All Class” basis with the eligibility age ranging from 17.5 to 21, with medical and physical fitness standards in accordance with existing norms.
• The Agniveers Will receive an annual package of ₹4.76 lakh in the first year to ₹6.92 lakh in the fourth year, apart from risk and hardship and other allowances as applicable.
• Under the ‘Seva Nidhi’ package, they will receive about ₹11.71 lakh, including contribution and interest, on completion of service.
• The recruits will have to contribute 30% of their monthly emoluments to Seva Nidhi, with a matching contribution made by the government.
• There will be no entitlement to gratuity and pension benefits under the scheme.
• However, the ‘Agniveers’ will be provided a non-contributory life insurance cover of ₹48 lakh during their service.

Need for Agnipath Scheme

• Budget Rationalisation: Total budget allocation for defence for 2022-23 is ₹5.25 lakh crore, of which revenue allocation is ₹2.33 lakh crore, capital allocation is ₹1.52 lakh crore, and defence pensions add up to ₹1.19 lakh crore.
• To reduce pension budget as Agniveers will not be entitled to Pension and Gratuity.
• Previous calculations: The government can save Rs 11.5 crore per sepoy( 3 years tour of duty) compared to Sepoy with 17 years Terms of Engagement.
• Thus savings for only 1000 jawans could be Rs 11,000 crore which could then be utilised for the much needed modernisation of Indian Armed Forces.
• Ageing Armed forces: 60% percent of men are above 30 yrs of age.
• The scheme will induct tech savvy youth and bring down the average age profile of armed forces.
• Modernisation trend: Worldover militaries are being modernised.
• Number of personnel is being reduced and the focus is on upgrading skills and combat equipment.

Prelims Takeaway

• Agnipath Scheme
• Defence budget and planning