14-November-2024-Editorial

THE INTER-STATE COUNCIL: A TOOL FOR STRENGTHENING COOPERATIVE FEDERALISM IN INDIA

The Inter-State Council (ISC) is a vital institution established to foster cooperation between the central government and state governments, supporting India’s federal structure.

Recently, the ISC was reconstituted with the Prime Minister as its chairperson, emphasizing a renewed focus on cooperative federalism and harmonious Centre-State relations.

Establishment and Background

• Foundation: The ISC was created to support effective communication and cooperation between the Centre and states.
• Constitutional Provision: It was established under Article 263 of the Indian Constitution, which grants the President the authority to create councils for inter-state coordination.
• Sarkaria Commission Recommendation: In 1988, the Sarkaria Commission proposed making the ISC a permanent institution, leading to its formal setup in 1990 through a Presidential Order.

Functions of the Inter-State Council

The ISC was created to address inter-state issues and ensure smooth cooperation between the Union and states. Its key roles include:

• Policy Discussion: Facilitates discussions on topics of shared interest to the states and the Union government.
• Coordination: Recommends ways to improve coordination on policies and actions among states.
• Conflict Resolution: Investigates issues impacting Centre-State or Inter-State relations, working to enhance governance and resolve disputes effectively.

Composition of the Council

• Chairperson: The Prime Minister of India serves as the head of the ISC.
• Members:

• Chief Ministers of all states.
• Chief Ministers and Administrators of Union Territories (UTs) with and without Legislative Assemblies.
• Union Ministers: Six Cabinet-rank ministers appointed by the Prime Minister are also members.

• Amendments to Composition:

• 1990 Amendment: Allowed Governors of states under President’s rule to attend ISC meetings.
• 1996 Amendment: Authorized the Chairman to nominate permanent invitees from other Union Ministers.

Standing Committee of the ISC

• Establishment: In 1996, the ISC decided to form a Standing Committee for ongoing consultations on significant issues.
• Leadership: The Standing Committee is led by the Union Home Minister and is reconstituted as needed with the ISC Chairman’s approval.

Secretariat of the ISC

• Location: The Inter-State Council Secretariat (ISCS) is based in New Delhi.
• Roles: Established in 1991, the ISCS is responsible for administrative duties, supported by a Secretary to the Government of India.
• Zonal Councils: In 2011, the ISCS assumed the role of the secretariat for the Zonal Councils, enhancing regional cooperation.

Benefits of the ISC

• Enhanced Policy Acceptance: Policies developed with ISC deliberation often gain higher acceptance among states, reducing tensions.
• Balanced Power Dynamics: By promoting federal principles, the ISC helps prevent either the Centre or the states from overpowering the other.
• Constitutional Alignment: ISC decisions aim to adhere to India’s constitutional framework, particularly important in reforms like the Goods and Services Tax (GST) or demonetization that may strain Union-State relations.

    

Other Key Centre-State and Inter-State Bodies

Zonal Councils:

• Statutory Bodies: Formed under the States Reorganisation Act, 1956, with five regional councils (Northern, Central, Eastern, Western, and Southern).
• Leadership: Headed by the union Home minister, with the Chief Ministers of member states as rotating Vice-Chairpersons.
• North Eastern Council: Created separately in 1972 to address issues specific to the North Eastern states.

River Water Dispute Tribunals:

• Constitution: Created under the Inter-State River Water Disputes Act, 1956 for resolving river water sharing disputes.
• Article 262: Empowers Parliament to enact laws for dispute resolution related to inter-state rivers.

GST Council:

• Constitutional Body: Established under Article 279A to manage GST implementation.
• Composition: Includes the Union Finance Minister, Union Revenue Minister, and State Finance Ministers.
• Role: Uses consensus-based decisions to streamline tax administration, promoting cooperative federalism.

Challenges Facing the Inter-State Council

Infrequent Meetings:

• ISC meetings have been sporadic, with only 11 meetings since 1990, and the last meeting held in July 2016.
• Though it is meant to meet three times a year, this frequency is rarely maintained.

Non-Binding Recommendations:

• The ISC’s advisory nature limits its power to enforce decisions, hindering Union-State collaboration.
• Lack of Enforcement: The council’s recommendations are not binding, which reduces its effectiveness as a resolution mechanism.

Political Dynamics:

• Political differences between Centre and state governments can make it difficult to reach consensus on issues.
• The council’s decisions may sometimes be influenced by political interests, affecting its objectivity.

Reforms Needed for an Effective Inter-State Council

Amendment of Article 263:

• The Punchhi Commission (2010) recommended expanding the ISC’s mandate to address broader federal challenges.
• Amending Article 263 could help the ISC evolve from an advisory body into a more influential consultative forum.

Regular and Timely Meetings:

• Enforcing regular meetings would promote ongoing dialogue, ensuring timely discussions on pressing issues.

Defined Agenda and Priorities:

• Setting specific priorities for each meeting could focus discussions on critical issues like water disputes, infrastructure, and economic collaboration.

Use of Technology:

• Digital tools can enhance communication and data-sharing, making the ISC more efficient and responsive.

Conclusion

For India’s federal structure to function effectively, the Inter-State Council must evolve into a proactive and empowered institution. Strengthening its mandate, holding regular meetings, and setting clear agendas will help foster cooperation and resolve Centre-State complexities. This evolution is essential for the ISC to truly support India’s cooperative federalism and maintain a balanced federal framework.