"My ministry has completed all formalities and OROP will be implemented," he said, adding that the executive process takes some time.
Speaking at a function in Pune to felicitate city-based war veterans, Mr Parrikar said this issue should not be "politicised".
"People still do not know financial implications of this. The Defence Ministry has completed its calculations and there was a unanimous agreement with the Armed Forces on the formula," he said.
After he took over as Defence Minister the figure of scheme provision had touched about Rs 22,000 crore, he said.
"The government is committed to taking care of your families. I am also working out a mechanism by which proper compensation can be given in case of battle casualties along with education to the children of the martyrs," the minister added.
Lt Gen B Pandit (retd), who spoke on behalf of the veterans, said delay in the implementation of OROP was causing anxiety among the fraternity.
"It is the sacred responsibility of the state to create conditions to keep the morale of the Armed Forces high," he added.
One of the gallantry award winners and 1971 war veteran Wing Commander Suresh Karnik told PTI that he was boycotting the function in protest against delay in implementation of OROP and "lip service" offered by the government to the cause of ex-servicemen.
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