Union Cabinet Clears 2 Year Extension For Agniveers, Opens Path To Regular Service

Chief of Defence Staff (CDS) General NS Raja Subramani announced the decision of the Union Cabinet, chaired by Prime Minister Narendra Modi on Wednesday, describing it as an important development for both Agniveers and the armed forces. “Under the new arrangement, those completing their four-year engagement will be offered a second service period of two years, during which they will be considered for transition into regular military service, subject to prescribed selection criteria,” the SDS said.

The extension also comes with improved financial benefits, as the CDS said, “Agniveers opting for the additional two years will receive higher remuneration and an enhanced Seva Nidhi package, although the revised financial structure has not been detailed yet”.

The decision comes as the first batch of Agniveers, recruited in 2022 following the launch of the Agnipath scheme, approaches the end of its contractual service. The Indian Navy’s first batch is scheduled to complete its tenure on November 21, followed by the Indian Air Force on December 21 and the Indian Army on December 31.

General Subramani said the performance of Agniveers had been under continuous assessment since the schem’s introduction in 2022, with feedback from the three services being largely positive. The latest decision, he indicated, reflects the armed forces' assessment of their contribution and creates a more structured pathway for retaining trained personnel.

Under the original Agnipath framework, recruits between the ages of 17.5 and 21 are inducted into the Army, Navy and Air Force for a fixed four-year period. At the end of their engagement, up to 25 per cent of each batch are eligible for permanent enrolment in the regular cadre, based on performance, merit and organisational requirements. The remaining 75 per cent are released from service with a financial exit package and a skills certificate to support their transition into civilian employment.

The newly approved arrangement introduces a second engagement period for the latter category, potentially extending their service to six years. It also adds another layer to the personnel structure within military units, comprising Agniveers completing their original four-year contracts, those continuing under the two-year extension and personnel selected for permanent absorption.

The first batch comprised approximately 24,400 Agniveers across the three services. Of these, the Indian Air Force has already absorbed 712 personnel into its regular cadre, while the Navy has earmarked around 550 permanent positions for recruits from the first batch. The Army’s absorption figures are subject to its respective selection and recruitment requirements.

Introduced in June 2022, the Agnipath scheme was designed to create a younger military workforce, reduce long-term salary and pension liabilities and bring greater flexibility into defence recruitment. However, its provision allowing only a quarter of recruits to continue in regular service had been a major point of debate, particularly over employment security and the future of those released after four years.

Financially, Agniveers receive a monthly package beginning at Rs 30,000 in the first year and rising to Rs 40,000 in the fourth year. Thirty per cent of their monthly package is contributed to a dedicated Seva Nidhi fund, with the government making an equal matching contribution. At the end of the original four-year tenure, those released are entitled to an estimated tax-free Seva Nidhi payout of Rs 11.71 lakh, along with an Agniveer Skill Certificate.

They are also covered by a non-contributory life insurance policy of Rs 48 lakh during their engagement. However, under the original framework, Agniveers released after four years are not entitled to regular military pensions or gratuity benefits.

The Cabinet’s latest decision marks an important recalibration of the scheme as its first recruits prepare to complete their service. By offering an additional two years, the government has sought to create greater continuity in military service while giving more Agniveers an opportunity to demonstrate their suitability for permanent enrolment.

The move could also help the armed forces retain trained personnel and the experience they have acquired during their initial engagement. However, the extent to which the new arrangement will alter permanent recruitment numbers will depend on the selection process and the requirements of individual services.