The Prime Minister's Office (PMO) is "directly involved" in the efforts to resolve the One Rank One Pension (OROP) issue and the government is working to fill in the "small gaps" in it, defence minister Manohar Parrikar said on Friday.
He also said that some time should be given to resolve the matter.
"Now the small gaps are being filled. Give it some time for completion. In principle, the Prime Minister on August 15 (Independence Day speech) has given an approval. Now, PMO is directly involved...then by saying that do it in these many days will not help.
"All efforts are being made to solve the issue," Parrikar told reporters in Delhi on the sidelines of an event.
Talks between agitating ex-servicemen and the government failed to make a headway on Thursday in resolving sticky issues for OROP implementation.
Veterans to boycott 1965 war events after OROP talks collapse
Asked about the shelling on the border by the Pakistani forces, the defence minister said the security forces are on "alert" and taking action.
Earlier, addressing a conference, he said the defence industry can give a boost to the 'Make in India' campaign through micro, small and medium enterprises (MSMEs).
"More than 40% of India's engineering exports are through MSMEs. But for them the defence sector is like a hurdle due to stringent conditions because if one has to export goods, they have to be first sold locally. One has to develop the product first.
"I have got letters from over 30 owners of MSMEs expressing their frustration that they have spent crores on technology, but that is not being used," Parrikar told the India MSME Expo and Summit 2015.
He said that "flexibility" needs to be brought into the procurement process and his ministry will bring amendments in the Defence Procurement Procedure (DPP).
Batting for a greater role for MSMEs, Parrikar said it was important to give them a boost "...if a war erupts it is the local industry a country needs to rely on rather than a foreign one".