Section 311(1) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(1)The Chief of the Naval Staff may sanction the award of Meritorious Service Medal, with annuity to men of the Indian Navy. The number of awards authorised in the Service shall be determined at the scale of one for every 900 men of the sanctioned strength as on 31st December of the year for which the Meritorious Service Medals are to be awarded.