Inter State Council – Indian Polity Notes

The Inter State Council is a recommendatory body that has been empowered to investigate and discuss subjects of common interest between the Union and state(s), or among states. The Inter-State-Council was set up under Article 263 of the Constitution of India.

When a number of Governments function in a polity, as they do in Federation, areas of tension, difference and disputes are bound to arise between them from time to time. It therefore becomes necessary to have some mechanism to resolve these disputes. 

Constituent Assembly was mindful of this scenario and there has provided some provisions to deals with such scenarios.

Constitutional Provisions:

If at any time it appears to the President that the public interests would be served by the establishment of a Council charged with the duty of— 

(a) Inquiring into and advising upon disputes which may have arisen between States; 

(b) investigating and discussing subjects in which some or all of the States, or the Union and one or more of the States, have a common interest; or 

(c) making recommendations upon any such subject and, in particular, recommendations for the better co-ordination of policy and action with respect to that subject, it shall be lawful for the President by order to establish such a Council, and to define the nature of the duties to be performed by it and its organisation and procedure.

Historical Background:

Setalvad Study Team on Centre-State Relationships had in 1968 recommended an inter-state council. It said, “Inter-state disputes need to be settled quickly and impartially otherwise they become festering sores which create friction, prevent development, give a perverse direction to the energies of people and Government and generate hard feelings on all sides. 

The P V Rajamannar committeee (1969) submitted a report in 1971, recommending “the Inter State Council should be constituted immediately”.

The Sarkaria Commission on Centre – State Relations was formed in 1983 to review the working of the existing arrangements between the Union and the States in the changed socio-economic scenario. 

In its report submitted in 1988, the Sarkaria Commission recommended establishment of Council under article 263. The commission suggest name of council as Inter Governmental Council with duties given in clauses (a), (b), (c) of article 263.

Composition:

The Inter State Council is comprised of:

• Prime Minister as the Chairman
• Chief Ministers of all states.
• Chief Ministers of union territories with legislature.
• Administrators of union territories without legislature.
• Six Cabinet Ministers including Union Home Minister, nominated by the Prime Minister.
• 10 central ministers as permanent invitees nominated by the Prime Minister.

Note: In case states are under President’s Rule then that state is represented in the council by the Governor of state.

Functions:

1. Investigating and discussing such subjects in which states or the centre have common interest.
2. Making recommendations upon any such subject for better coordination of policy and action on it.
3. Deliberating upon such other matters of general interest to state as may be referred to it by the chairman.

The Inter State Council not only tasked to ensure coordination between the states but between centre and states.

Council meets at least thrice in a year and decisions are taken by consensus.

Standing Committee of Inter State Council:

Established in 1996 for continuous consultation and processing matters for Council’s consideration, it is comprised of:

• Union Home Minister as Chairman
• Five Union Cabinet Ministers
• Nine Chief Ministers

Committee will have continuous consultation and process matters for consideration of the council, process all matters pertaining to centre-state relations before they are taken up for consideration in the inter-state council.

The standing committee also monitors the implementation of the decisions taken on the recommendations of the council.

Other Bodies promoting Inter State Relations:

There are other forums also wherein Centre and State take part and take decision upon debate and discussion, such as:

• Niti Ayog : Chaired by Prime Minister and Chief Ministers of all states are members.
• GST Council: Chaired by Union Finance Minister and Finance Minister or any minister designated by state government is member. 
• Zonal Councils: Union Home Minister is Chairman and Chief Ministers and Governors of all union territories in the zone are members.

Issues with Inter State Council:

1. Inter State Council has only advisory powers, it will investigate, enquire into matter wherein some states or all states and centre has common interest.
2. It is not permanent body to deal with centre state relations but kind of ad-hoc arrangement. The President is empowered to appoint (any) council in public interest. 
3. Though the council is mandated to meet at least thrice in one year. Since it’s constitution, the council has met only 12 time in 32 years. Last meeting was held in 2016.

Examples of Inter State Disputes:

1. Kerala has approached the Supreme Court against the CAA, invoking Article 131. The Punjab, Rajasthan and West Bengal Assemblies have passed resolutions opposing the CAA.
2. Reference to the 15th FC to adopt population as the base for devolution of funds to states and to do so on the basis of the 2011 Census has also led to dissatisfaction among state especially Southern States.
3. When the Centre unilaterally permitted import of pepper from Vietnam through Sri Lanka under the South Asia FTA, growers in Karnataka and Kerala came under great distress due to a crash in prices.
4. Boundary dispute between states like Maharashtra – Karnataka over Belgaum issue, Assam – Meghalaya etc. 

Suggestions:

1. As suggested by Tamil Nadu Chief Minister M K Stalin, the Council shall meet thrice a year according to clause 5 of Presidential Order of 1990 and bills of national importance shall be placed before council before being tabled in the Parliament.
2. Like the GST council voting structure, with the Union govt having a third of the vote while the states share the rest equally, irrespective of the size of their population or economy, can be incorporated in the Councils Working.
3. Union Government shall not take important decisions of federal implications without consulting states, this leads to conflict between centre and states especially when ruling party is different in both governments.

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