The decision will benefit the families of 9,777 officers and other personnel of the defence services who died or were invalidated out of service between December 30, 1991 and November 29, 1999 with less than 15 years of service.
This period is very significant as a large number of casualties took place during the Kargil conflict and in counter-insurgency operations in Jammu & Kashmir and the Northeast, the government said.
The decision on the leave encashment scheme was taken at a meeting of the Union Cabinet presided over by Prime Minister Narendra Modi.
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