Arguably thats what AI's biggest problem was during the late 90s and early 2000s. Too many people were forced into "early retirement" and then brought back as "consultants" on "contract". For a long time, there wasn't any 747 captain actually employed by Air India. They were all forced to "retire" to trim headcount in order to meet some externally imposed metric and then hired back at higher cost.

Never underestimate Indian bureaucracy's way of screwing up even the most well meaning of ideas.