AGNIPATH: four years as an Agniveer, a Seva Nidhi package, and no gratuity or pensionary benefits
Background
The Union Cabinet approved AGNIPATH as a recruitment scheme for the three Armed Forces; those selected under it are known as Agniveers.
Agniveers are enrolled under respective Service Acts for a period of four years and form a distinct rank in the Armed Forces, different from any other existing ranks.
They get a customised monthly package along with Risk and Hardship allowances as applicable in the three services. Thirty per cent of the monthly package goes into the Corpus Fund and the Government makes a matching contribution.
On completion of the four-year engagement an Agniveer is paid a one-time 'Seva Nidhi' package of Rs 11.71 Lakh. It comprises the Agniveer's own contribution to the Agniveer Corpus Fund together with the interest accrued on it, and a matching Government contribution equal to that accumulated amount. The Seva Nidhi is exempt from Income Tax.
There is no entitlement to gratuity and pensionary benefits. Agniveers are given a non-contributory Life Insurance Cover of Rs 48 lakhs for the duration of the engagement period.
Up to 25% of each specific batch of Agniveers may be enrolled in the regular cadre, on centralised consideration against objective criteria. Those taken into the regular cadre serve a further engagement period of minimum 15 years on the existing terms for Junior Commissioned Officers and Other Ranks and their equivalents.
Enrolment is on an 'All India All Class' basis through an online centralised system, and the eligible age range is 17.5 to 21 years.
In plain words
Agniveer Agniveer — The rank held by a soldier, sailor or airman enrolled under AGNIPATH for a four-year engagement, distinct from every existing rank.
Seva Nidhi Seva Nidhi package — The one-time, income-tax-exempt payment made to an Agniveer on completing the four-year engagement, made up of the Agniveer's own contribution, the Government's matching contribution and interest.
Corpus Fund Corpus Fund — The fund into which 30 per cent of an Agniveer's monthly package is paid and to which the Government adds an equal amount.