About Us Pension Branch

  1. Historical Background. The Gorkhas were first recruited into the Indian Army in 1815. Prior to Independence in 1947, ex-servicemen and their families were drawing pension from border treasuries in India. After India’s independence the responsibility of pension payment was taken over by the Indian Embassy. The first Military Attaché posted in 1949 took over the responsibilities thereafter. In 1950, some 300 disabled ex-servicemen drawing their pension from Pokhara Mal Adda (equivalent to a District Treasury) petitioned the Ambassador that they had not received their pensions for the last two years. The Military Attaché was tasked to set up a temporary camp at Pokhara so that these ex-servicemen could get their dues. Thus, the concept of pension payment camps in the interior areas came into being as it ensured timely payment of pension near the homes of the pensioner saving their money, time and effort to come to collect pensions. Due to the ever-increasing strength of pensioners, Military Pension Branch (MPB) was established in Nepal in the year 1955 and Capt MK Menon from 5th Gorkha Rifles was posted as first Asst Military & Air Attache (AM&AA). Later in 1960 the responsibility for disbursement of pension to civilian pensioners was also completely handed over to the Military Attaché. The MPB comprises of a HQ at Kathmandu and the PPOs at Kathmandu, Pokhara and Dharan which looks after the pension and welfare activities of approximately 1,26,000 Govt of India pensioners and their dependents in Nepal. All these establishments are being looked after by one serving Gorkha Regiment officer each, functioning under the Defence Attaché. The HQ at Kathmandu is responsible for the overall functioning, rulings/ policies and implementation of the Pension Payment Orders. Pension worth INRs 2796 Crores was distributed in the FY 2016-17.

  2. In the last five years pension disbursed to Defence and Civil pensioners who retired from India is as follows including Other than Pension (OTP), OROP & 7th CPC payments:-
    S/No FY In Indian Rupees Nepalese Rupees



    In Indian Rupees

    Nepalese Rupees



    1386 Crores

    2217 Crores



    1569 Crores

    2510 Crores



    1730 Crores

    2768 Crores



    1974 Crores

    3158 Crores



    2796 Crores

    4473 Crores

  3. One Rank One Pension (OROP). OROP implementation for Nepal Domiciled Gorkha pensioners of Nepal drawing their pension from three Pension Paying Offices (PPOs) at Kathmandu, Pokhara and Dharan is being carried out since March 2016. In addition to payment at the PPOs, payment of OROP arrears and revised pension is also being done through 18 Seasonal Pension Paying Camps (SPPCs) and through Banks viz NSBL and Everest Bank. A total of INRs 328.16 Crores (NRs 525.05 Crores) has been distributed as OROP in 1st, 2nd, 3rd & 4th installment till date, and payment of 4th installment is expected to be completed shortly.

  4. Implementation of 7th Central Pay Commission (7th CPC) Pensions. The Government Notification on 7th Central Pay Commission and a Circular from PCDA (P) Allahabad was received and its implementation has commenced with effect from September 2016 and December 2016, for Civil and Defence Pensioners, respectively. A total of INRs 199.93 Crores (NRs 319.88 Crores) has been distributed as 7th CPC arrears to approx 97.50% pensioners till date, and its full implementation is expected to be completed shortly.

  5. Construction of PPO Butwal. After concerted efforts by Defence Wing, Embassy of India, Kathmandu (Nepal), Government of Nepal had sanctioned the additional land (0.70 Hectare) for establishment of PPO Butwal on 20 Mar 2017 and the same has already been transferred/taken over & fenced on 15 Aug 2017. His Excellency Shri Manjeev Singh Puri, Ambassador of India to Nepal laid the foundation stone for the proposed Pension Paying Office (PPO) at Butwal on 04 Sep 2017. The further course of action for construction of the PPO at Butwal is under progress.

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