Inter-State Councils

India is a federal country with a unique blend of unity and diversity. The Constitution provides for a clear division of powers between the Union and the States. However, due to the complex nature of governance and the interdependence of policies, disputes and coordination between the Centre and States, and among States themselves, are inevitable. To address this, the Constitution of India provides for a special mechanism known as the Inter-State Council under Article 263.

This article aims to provide a detailed and easy-to-understand legal overview of the Inter-State Council—its constitutional basis, composition, functions, benefits, limitations and the way forward to strengthen cooperative federalism in India.

Constitutional Foundation of the Inter-State Council

The Inter-State Council is established under Article 263 of the Constitution of India. This Article empowers the President of India to set up a Council whenever it appears that public interest requires such a body.

The Council’s primary purpose is to facilitate coordination and cooperation between the Union and States and among the States themselves. The President also has the power to define the Council’s duties, organisational structure and procedure through a presidential order.

Article 263(1) states:

“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, and
(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.”

Thus, the Inter-State Council is a constitutional instrument to promote consultation, cooperation and coordination in a federal polity like India.

The Historical Context and Establishment of Inter-State Councils

The idea of the Inter-State Council was extensively recommended by the Sarkaria Commission (1983-1988), which studied Centre-State relations in India. The Commission emphasised the need for a permanent forum to discuss and resolve inter-State and Centre-State issues to strengthen cooperative federalism.

Following this recommendation, the Inter-State Council was established in 1990 by a presidential order under Article 263. Since then, it has acted as a platform to deliberate on various subjects of common interest, but its meetings have been irregular.

Composition of the Inter-State Councils

The composition of the Inter-State Council ensures representation from both the Union and the States at the highest political levels, reflecting its significance in the federal system. The membership includes:

• Chairman: The Prime Minister of India.
• Members:
  • Chief Ministers of all States.
  • Chief Ministers of Union Territories having legislative assemblies.
  • Administrators of Union Territories not having legislative assemblies.
  • Governors of States under President’s rule.
  • Six Union Cabinet Ministers, including the Home Minister, nominated by the Prime Minister.
• Permanent Invitees: Five Ministers of Cabinet rank or Ministers of State (Independent Charge), nominated by the Chairman (Prime Minister).

This broad and high-level representation is designed to provide a comprehensive forum where political and executive leaders can address complex federal issues.

Functions and Powers of Inter-State Councils

The Inter-State Council primarily performs an advisory role with the following key functions:

Inquiring into and Advising on Disputes Between States

The Council can look into disputes that may arise between States. It complements the Supreme Court’s jurisdiction under Article 131, which deals with adjudication of disputes between States but offers binding decisions. The Inter-State Council instead offers recommendations which are non-binding but seek to resolve conflicts amicably.

Investigating and Discussing Common Subjects

The Council investigates and discusses subjects where States and the Union share common interests. These subjects can be from legislative lists or administrative matters that require cooperation such as health, education, disaster management, and economic planning.

Making Recommendations for Policy Coordination

On any subject under discussion, the Inter-State Council can recommend measures for better coordination of policy and action among States and between the Centre and States. This fosters a harmonised approach to governance and reduces friction.

Promotion of Cooperative Federalism

By providing a platform for dialogue and consensus-building, the Inter-State Council strengthens cooperative federalism, ensuring that States are partners in national policy-making.

It is important to note that the Inter-State Council does not have judicial powers and its recommendations are not legally binding. Its effectiveness depends on political will and mutual cooperation.

Meetings and Procedure in Inter-State Councils

The Constitution envisages that the Inter-State Council should meet at least three times a year. However, in reality, its meetings have been quite irregular. Since its establishment in 1990, the Inter-State Council has held only a handful of meetings, with some gaps lasting nearly a decade.

The Council meets in camera to encourage frank discussions. All decisions are made by consensus, reflecting the spirit of cooperation and mutual respect among members.

To support its work, a Standing Committee of the Inter-State Council was set up in 1996. This committee is chaired by the Union Home Minister and is responsible for continuous consultation and preparing matters for the Council’s consideration.

One limitation that continues to hamper the ISC’s functioning is the absence of a permanent secretariat. This reduces the capacity for follow-up, coordination and record-keeping, thereby impacting the effectiveness of its recommendations.

Benefits of the Inter-State Council

The Inter-State Council holds several advantages in the federal governance system of India:

• Only Constitutional Multilateral Forum: The Inter-State Council is the sole multilateral platform directly created under the Constitution for Centre-State and inter-State coordination. Its constitutional backing provides it with authority and legitimacy.
• Platform for Policy Dialogue: It enables the Union and States to discuss pressing issues like Goods and Services Tax (GST), disaster management, terrorism, and internal security in a collaborative environment.
• Building Trust and Reducing Conflict: The Inter-State Council helps bridge trust deficits between the Centre and States by providing a forum for discussion, even if it is not a formal dispute resolution body. It acts as a safety valve to ease tensions and misunderstandings.
• Promoting Harmonisation: Through its recommendations, the Inter-State Council encourages harmonisation of laws and administrative actions across States, facilitating smoother governance.
• Enhancing Federal Cooperation: By bringing political leadership from the Centre and States together regularly, it fosters a culture of cooperation essential for India’s diverse polity.

Conclusion

The Inter-State Council is a significant constitutional innovation aimed at bridging the governance gap between the Union and the States, and among States themselves. Its role as a consultative and cooperative platform is vital in a federal democracy as diverse as India.

While it has faced challenges such as irregular meetings, non-binding recommendations, and institutional weaknesses, its importance in promoting cooperative federalism cannot be overstated. Strengthening the Inter-State Council by ensuring regularity, creating a permanent secretariat, enhancing transparency, and improving follow-up will enable it to function as an effective forum for resolving disputes, harmonising policies and building consensus across India’s federal structure.