Inter-state Council

The Inter-State Council (ISC) is a constitutional body established under Article 263 of the Constitution of India. It serves as an institutional mechanism to promote coordination, cooperation, and harmonious relations between the Union and the State Governments. The Council was formally constituted through a Presidential Order dated 28 May 1990, following the recommendations of the Sarkaria Commission, which emphasised the need for a permanent platform to discuss and resolve inter-governmental issues.

Background and Constitutional Basis

Article 263 of the Constitution envisages the creation of a council if it appears to the President that public interest would be served by such an establishment. The provision authorises the President to define the duties, organisation, and procedure of the Council through an order. The article lays down three main functions for the body:

1. To inquire into and advise upon disputes which may have arisen between States;
2. To investigate and discuss subjects in which some or all States, or the Union and one or more States, have a common interest;
3. To make recommendations for better coordination of policy and action concerning such subjects.

The framers of the Constitution envisaged the Inter-State Council as a mechanism for cooperative federalism, aiming to ensure consultation between the Centre and the States in matters of common concern. However, its creation was left to the discretion of the President, who could constitute such a council whenever deemed necessary in the public interest.

Establishment and Historical Context

The Sarkaria Commission on Centre-State Relations (1983–1988) highlighted the growing friction between different levels of government and strongly recommended the establishment of the Inter-State Council. Acting on this recommendation, the President of India issued an order on 28 May 1990, formally constituting the Council.
In the initial decades after Independence, inter-governmental issues were easily resolved due to the political dominance of a single party both at the Centre and in most States. However, after 1967, with the emergence of regional parties and coalition governments, the need for a structured mechanism for inter-state coordination became more pronounced. The Inter-State Council was thus envisaged as a platform for dialogue and cooperation across political lines.

Composition of the Inter-State Council

The composition of the Council reflects a balance between the Union and the States:

• Chairman: The Prime Minister of India.
• Members:
  • Chief Ministers of all States;
  • Chief Ministers of Union Territories having Legislative Assemblies;
  • Administrators of Union Territories without Legislative Assemblies;
  • Governors of States under President’s Rule;
  • Six Ministers of Cabinet rank in the Union Council of Ministers nominated by the Chairman.
• Permanent Invitees: Five Ministers of Cabinet rank nominated by the Chairman.

This composition ensures that all constituent units of the Indian Union are represented, allowing for broad-based deliberations on issues of national importance.

Functions and Duties

The Inter-State Council is advisory and recommendatory in nature. Its primary objective is to promote coordination between the Union and the States on policy matters and to serve as a forum for dialogue and consultation. Its major functions include:

• Inquiring into and advising upon disputes which may have arisen between States;
• Investigating and discussing matters in which the Union and the States, or two or more States, have a common interest;
• Making recommendations for better coordination of policy and action on such matters;
• Deliberating upon matters of general interest to States that may be referred by the Chairman.

Although its recommendations are not binding, they often play an important role in influencing policy decisions and promoting consensus-based governance.

Secretariat and Administrative Structure

The Inter-State Council is assisted by a dedicated Secretariat, which functions under the Ministry of Home Affairs. It is headed by a Secretary to the Government of India. The Secretariat is responsible for:

• Preparing agenda notes and background papers for meetings;
• Monitoring the implementation of recommendations made by the Council;
• Submitting Action Taken Reports (ATRs) before the Standing Committee or the Council for review;
• Functioning concurrently as the Secretariat of the Zonal Councils, which address regional cooperation issues.

This dual responsibility allows the Secretariat to coordinate effectively between central, state, and zonal mechanisms for inter-governmental consultation.

Competence on Riparian and Inter-State Disputes

The Inter-State Council also possesses competence to advise on disputes of riparian or inter-state nature, such as those concerning river water sharing. However, its jurisdiction under Article 263 is limited to disputes between States, and does not extend to disputes between the Union and a State.
While the Council can inquire into and advise upon such disputes, its recommendations are not enforceable and remain purely advisory. The constitutional mechanism for the adjudication of inter-state water disputes is separately provided under Article 262, through tribunals constituted by Parliament. Nevertheless, the Inter-State Council serves as a valuable forum for preliminary consultation and consensus-building on such sensitive issues.

Evolution and Functioning

Although the Council was established in 1990, it remained largely inactive for several years. It was only during the tenure of Prime Minister Atal Bihari Vajpayee that the body was revived and meetings were held regularly, often once a year. However, subsequent years witnessed irregular meetings and limited follow-up action on its recommendations.
The Standing Committee of the Inter-State Council, set up in 1996 under the chairmanship of the Union Home Minister, was designed to ensure continuity between meetings. Yet, despite such institutional arrangements, the overall functioning of the Council has been marked by long intervals between meetings and slow implementation of its recommendations.

Criticism and Underutilisation

The Inter-State Council has often been described as one of the most underutilised constitutional bodies in India. Several reasons contribute to its limited effectiveness:

• Infrequent meetings, reducing the scope for continuous policy dialogue;
• Non-binding recommendations, leading to weak implementation;
• Overlapping functions with other institutions such as the NITI Aayog and Zonal Councils;
• Limited political will to use it as a serious forum for inter-governmental negotiation.

Despite being envisaged as a vital instrument of cooperative federalism, the Council has not been able to fully realise its potential in harmonising Centre-State relations.

Contemporary Relevance

In the current era of multi-party coalitions, regional aspirations, and diverse policy challenges, the importance of the Inter-State Council has grown considerably. It provides a platform to deliberate on issues such as fiscal federalism, internal security coordination, disaster management, environmental regulation, and sharing of natural resources.
Revitalising the Council with regular meetings, effective follow-up, and integration of its work with other inter-governmental forums could make it a cornerstone of India’s cooperative federal framework.