Inter-State Council

• 13 Nov 2024

For Prelims: Inter-State Council, Federalism, Governor, Goods and Services Tax, Sarkaria Commission, Zonal Councils

For Mains:  Inter-State Council and issues, Centre-State relations, Federalism in India

Source: BS

Why in News?

The Indian government has recently reconstituted the Inter-State Council (ISC) after two years, with the last reconstitution in 2022, appointing the Prime Minister(PM) as chairman and underscoring a renewed commitment to Centre-State relations and cooperative federalism. 

What is the Inter-State Council? 

• Establishment: The ISC was constituted to facilitate Centre-State and Inter-State cooperation in India. 
  • It was established under Article 263 of the Constitution, which empowers the President of India to establish an ISC for better coordination between States. 
  • The Sarkaria Commission (1988) recommended making the ISC a permanent body, leading to its formal establishment in 1990 through a Presidential Order. 
• Functions of the ISC: It discusses subjects of common interest to states and the Union and makes recommendations for the coordination of policies and actions. 
  • The ISC also investigates issues affecting Centre-State and Inter-State relations to ensure seamless governance. 
• Composition of the Council: The PM serves as the Chairperson. Members include Chief Ministers(CMs) of all States, CMs of Union Territories having a Legislative Assembly and Administrators of UTs not having a Legislative Assembly, and 6 Union Ministers of Cabinet rank, nominated by the Prime Minister, are also part of the ISC. 
  • The Presidential Order of 1990 has been amended twice, first in 1990 and then in 1996, to allow the Governor of a State under President's rule to attend the meeting of the ISC and for the Chairman to nominate permanent invitees from amongst the other Union Ministers, respectively. 
  • In the second meeting of the ISC held in 1996, the Council decided to set up a Standing Committee for continuous consultation and processing of matters for consideration of the Council.  
    • Accordingly, a Standing Committee was set up under the Chairmanship of the Home Minister and has been reconstituted from time to time with the approval of the Chairman of the Council. 
• Secretariat: The Inter-State Council Secretariat(ISCS) in New Delhi was established in 1991 and is headed by a Secretary to the Government of India.  
  • The secretarial functions of the Zonal Councils have been transferred to the ISCS since 2011. 
• Benefits: Policies developed through ISC deliberation would hold greater social legitimacy, enhancing acceptance among states and reducing friction. 
  • The ISC maintains the balance of power between the Union and states, preventing dominance by either side. It ensures that Union decisions align with the constitutional framework and federal principles, especially during reforms like Goods and Services Tax (GST) or demonetization that may strain Union-state relations. 

Other Key Inter-State and Centre-State Bodies 

• Zonal Councils: These are statutory bodies established under the States Reorganisation Act of 1956.  
  • There are five Zonal Councils (Northern, Central, Eastern, Western, and Southern). They aim to promote interstate cooperation and coordination, each Zonal Council is headed by the Union Home Minister, with CMs from the constituent states serving as Vice-Chairpersons on a rotating basis. 
  • The North Eastern region has a separate council, the North Eastern Council, created in 1972, set up under the North Eastern Council Act, 1972.  
• River Water Dispute Tribunals: These tribunals are constituted under the Inter-State River Water Disputes Act, 1956, to adjudicate disputes between states over the sharing of river waters. 
  • Article 262 provides that Parliament may by law provide for the adjudication of any dispute or complaint with respect to the use, distribution or control of the waters of, or in, any inter-State river or river valley. 
• The Goods and Services Tax (GST) Council: It was established under Article 279A of the Constitution, is a constitutional body responsible for deciding key issues related to GST implementation in India.  
  • It comprises the Union Finance Minister, the Union Revenue Minister, and State Finance Ministers, with decisions made through a consensus-based approach. 
  • Since its inception in 2016, the Council has made significant decisions on tax rates, and exemptions, promoting cooperative federalism and streamlining business operations in India. 

What are the Challenges Regarding the Inter-State Council? 

• Infrequent Meetings: Despite its purpose, the ISC has been criticised for irregular meetings, having met only 11 times since its establishment in 1990.  
  • The procedure mandates that it should meet at least three times a year, but the last meeting was held in July 2016. 
• Non-Binding Recommendations: The ISC faces key challenges due to its advisory and non-binding nature, which limits its impact on resolving disputes and hinders effective Union-State coordination.  
  • Its broad mandate lacks enforcement authority, making it more a discussion forum than a decision-making body.  
  • Additionally, there is often a lack of robust follow-up mechanisms to ensure that recommendations are tracked and implemented, necessitating a more structured approach for meaningful outcomes. 
• Political Dynamics: The political landscape can influence the functioning of the ISC. Differences in political ideologies between the central and state governments can affect the council's ability to reach consensus on various issues.

What Reforms are Needed for ISC to Function Effectively?

• Amendment of Article 263: The Punchhi Commission (2010) emphasised making the ISC a specialised body to address intergovernmental relations and federal challenges. 
  • Amending Article 263 to strengthen the ISC’s mandate for addressing both inter-state and Union-state issues could enhance its role as a consultative and decision-making forum. 
• Regular and Timely Meetings: Reviving the mandate for regular meetings could foster continuity in discussions and provide states with a regular platform for policy input. 
• Clear Agenda and Priorities: Establish a clear agenda and set of priorities for each meeting, focusing on pressing inter-state issues such as water disputes, infrastructure development, and economic cooperation. 
• Technology Integration: Utilise digital tools and platforms to facilitate communication, data sharing, and decision-making processes within the ISC, making it more efficient and responsive. 

Conclusion 

To truly strengthen India’s federal framework, the Inter-State Council needs to evolve from a largely advisory body into a more proactive and empowered institution. Reforms like enhancing its mandate and ensuring regular, outcome-driven meetings will be crucial in fostering deeper cooperation and resolving the complexities of Centre-State relations. 

Drishti Mains Question: 

Discuss the role and significance of the Inter-State Council  in maintaining cooperative federalism in India. How effective has it been in addressing Centre-State issues?

UPSC Civil Services Examination Previous Year’s Questions (PYQs) 

Prelims:

Q.1.Which one of the following in Indian polity is an essential feature that indicates that it is federal in character? (2021) 

(a) The independence of judiciary is safeguarded. 

(b) The Union Legislature has elected representatives from constituent units. 

(c) The Union Cabinet can have elected representatives from regional parties. 

(d) The Fundamental Rights are enforceable by Courts of Law. 

Ans: A 

Q.2.Which one of the following is not a feature of Indian federalism? (2017) 

(a) There is an independent judiciary in India. 
(b) Powers have been clearly divided between the Centre and the States. 
(c) The federating units have been given unequal representation in the Rajya Sabha. 
(d) It is the result of an agreement among the federating units. 

Ans: D