Dedicating this Diwali to the armed forces personnel, he said he has "fulfilled the promise" he made to ex-servicemen on the one-rank-one-pension scheme.
Modi said the issue had been pending for "40 years" as certain people in the previous governments "did not know" about OROP, and therefore "only Rs 500 crore was allocated" for the purpose.
He made these remarks while celebrating Diwali with army and ITBP men in Sumdo in Himachal Pradesh's Kinnaur district.
"Spent time with our courageous @ITBP_official & Army Jawans at Sumdo, Kinnaur district, Himachal Pradesh. Jai Jawan! Jai Hind!," he tweeted.
Earlier, in his monthly "Mann ki Baat" programme on All India Radio, Modi asked the people and the state governments to find ways of forging unity across the country and work to defeat separatist tendencies and mentalities.
He hailed the people including celebrities for sending overwhelming messages to his "Sandesh2Soldiers" campaign.
In an apparent reference to tension on the Indo-Pak border, Modi credited the soldiers for maintenance of peace and security in the country and called upon everyone to remember their gallantry while celebrating Diwali.
"In the wake of recent events, our soldiers have been sacrificing their everything for the safety and security of the country. Their dedication and labour has overwhelmed me completely. Let us dedicate this Diwali to our armed forces.
In a veiled reference to the unrest in Kashmir Valley, the Prime Minister also called for forces of unity to be strengthened and those of separatism to be defeated.
"Unity in diversity is the strength of our country. Every citizen and every government must work to find ways of forging unity and defeating separatist mindset and tendencies," he said as he remembered Sardar Patel who strived hard to forge unity in the country and bind it together.
to wish people on Diwali. Was deeply touched by the impromptu reception & their joy," Modi tweeted.
"The Prime Minister spent time with ITBP jawans and personnel of Dogra Scouts of army at Sumdo on border of Kinnaur and Spiti, and distributed sweets to them," an official said.
Modi also met personnel of the General Reserve Engineering Force (GREF), a branch of Border Roads Organisation (BRO), entrusted with construction and maintenance of border roads and also executing the Rohtang Tunnel project, the official said.
After coming in power in 2014, the Prime Minister had celebrated his first Diwali with soldiers posted in Siachen, and in 2015, he celebrated it at the India-Pakistan border in Punjab.
"The money will reach them in four installments. Nearly, Rs 5,500 crore has been paid as the first installment," Modi said.
He said implementation of OROP was his "dream", which has been "fulfilled".
The Congress Vice President had written to Modi saying he was saddened at the decisions of the government taken in the last few weeks "which are far from reassuring the soldiers and has caused them pain instead".
Chief of Army Staff Gen. Dalbir Singh was present on the occasion.
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