Maarg Manthan · Topic 22.7

Inter-State Council (Article 263)

Indian Polity › Centre-State Relations · Topic 22.7

Article 263 enables a recommendatory Inter-State Council, set up in 1990 under the Prime Minister with all Chief Ministers, for Centre-state and inter-state coordination; the five statutory Zonal Councils of 1956 complement it.

5 min read · UPSC Prelims · Polity · Centre-State Relations

At a Glance

What it is A forum for Centre-state and inter-state coordination
Article Article 263
Established 1990, on Sarkaria’s recommendation
Chair The Prime Minister
Exam link UPSC Prelims, Polity: Centre-State Relations

Where Does It Fit?

This is the seventh topic of the category on Centre-State Relations. The successful functioning of the federal system depends not only on harmonious relations between the Centre and states but also among the states themselves. Article 263 contemplates an Inter-State Council to effect coordination.

What Article 263 Provides

The President can establish an Inter-State Council if at any time it appears that public interest would be served, and can define its duties, organisation and procedure. Article 263 specifies the duties that can be assigned: enquiring into and advising upon disputes between states; investigating and discussing subjects in which the states or the Centre and states have a common interest; and making recommendations on such subjects, particularly for better coordination of policy and action. Its function to enquire and advise on inter-state disputes is complementary to the Supreme Court’s jurisdiction under Article 131, but it is advisory, unlike the court’s binding decision, and it can deal with any controversy, legal or non-legal. Under Article 263 the President has established councils such as the Central Council of Health and Family Welfare, the Central Council of Local Government and four Regional Councils for Sales Tax.

The Inter-State Council of 1990

The Sarkaria Commission made a strong case for a permanent Inter-State Council and recommended calling it the Inter-Governmental Council. In pursuance, the V.P. Singh government established the Inter-State Council in 1990. Its members are the Prime Minister as Chairman, the Chief Ministers of all the states, the Chief Ministers of Union territories with legislative assemblies, the Administrators of Union territories without legislatures, Governors of states under President’s Rule, and six Central cabinet ministers including the Home Minister nominated by the Prime Minister. Five ministers of Cabinet rank or ministers of state with independent charge are permanent invitees.

The Council is a recommendatory body on inter-state, Centre-state and Centre-Union territory relations. Its duties are to investigate and discuss subjects of common interest, make recommendations for better coordination of policy and action, and deliberate on other matters of general interest referred by the Chairman. It may meet at least thrice a year; meetings are held in camera and decisions are by consensus. A Standing Committee was set up in 1996, with the Union Home Minister as Chairman, five Union Cabinet ministers and nine Chief Ministers. The Council is assisted by the Inter-State Council Secretariat, set up in 1991 and headed by a Secretary to the Government of India, which since 2011 also serves as the secretariat of the Zonal Councils.

Zonal Councils

Zonal Councils are statutory, not constitutional, bodies established by the States Reorganisation Act, 1956, which divided the country into five zones: Northern, Central, Eastern, Western and Southern. Each consists of the Union Home Minister, the Chief Ministers of the states in the zone, two other ministers from each state and the Administrator of each Union territory in the zone. Advisers without vote include a person nominated by NITI Aayog and the Chief Secretary and Development Commissioner of each state. The Union Home Minister is the common chairman of all five, and each Chief Minister is vice-chairman by rotation for one year. Their aim is to promote cooperation and coordination among states, Union territories and the Centre, discussing matters such as economic and social planning, linguistic minorities, border disputes and inter-state transport. They are only advisory bodies.

Other Inter-State Provisions

Provision	Content
Full faith and credit (Article 261)	Public acts, records and judicial proceedings of the Centre and every state recognised throughout India; civil judgments executable anywhere without a fresh suit; criminal judgments not covered
Freedom of trade (Articles 301 to 307)	Trade, commerce and intercourse free throughout India; Parliament can restrict in public interest without discrimination between states; state legislatures can impose reasonable restrictions with the President’s previous sanction
Regional councils for sales tax	Four, under Article 263

Why Is This Topic Important?

Composition Members and meetings are asked
Zonal Councils Statutory not constitutional
Sarkaria link Established on its recommendation

What Came Next?

The next topic covers inter-state river water disputes under Article 262.

Key People and Terms

Inter-Governmental Council Sarkaria’s suggested name
In camera In private
Consensus Decision without voting
Zonal Council Statutory regional body
Standing Committee Set up in 1996

Exam Corner

Points to Remember

Article 263; established 1990 by V.P. Singh.
Chair: Prime Minister; meets thrice a year.
Zonal Councils: five, from the 1956 Act.
Home Minister chairs all Zonal Councils.

Do Not Confuse With

Inter-State Council and Zonal Councils Constitutional provision versus statutory bodies
Advisory and binding Council advises; Supreme Court decides
NDC and Inter-State Council Different bodies

Memory Hook

Prime Minister in the chair, all Chief Ministers at the table, advice by consensus.

Mains Angle

Questions on this topic usually ask about cooperative federalism. Use these points to add depth.

Forum for dialogue Centre and states
Advisory only No binding power
Zonal Councils Regional coordination
Punchhi proposals Make it credible and powerful

A Question You May Face

An original practice question, not a past paper question.

“Explain the structure and role of the Inter-State Council and the Zonal Councils.”

How to Answer

Introduction Article 263.
Inter-State Council Composition and functions.
Zonal Councils Statutory.
Conclusion Strengthening.

GS Relevance

Prelims: Indian Polity, federalism. GS Paper 2: Centre-State relations and cooperative federalism.

Frequently Asked Questions

What is the Inter-State Council?

The Inter-State Council is a recommendatory body established under Article 263 in 1990 to promote coordination between the Centre and states and among states by examining, discussing and deliberating on issues of common interest. It was set up on the Sarkaria Commission’s recommendation.

Who are the members of the Inter-State Council?

The Prime Minister is Chairman, and members are the Chief Ministers of all states and of Union territories with legislatures, Administrators of other Union territories, Governors of states under President’s Rule and six Union cabinet ministers including the Home Minister.

How often does the Council meet?

The Council may meet at least thrice in a year. Its meetings are held in camera and all questions are decided by consensus. A Standing Committee headed by the Union Home Minister was set up in 1996 for continuous consultation.

What are Zonal Councils?

Zonal Councils are statutory bodies set up by the States Reorganisation Act, 1956, for five zones, to promote cooperation among states, Union territories and the Centre. The Union Home Minister is the common chairman and Chief Ministers are vice-chairmen by rotation.

What is the full faith and credit clause?

It requires that full faith and credit be given throughout India to public acts, records and judicial proceedings of the Centre and every state. Final civil judgments can be executed anywhere in India without a fresh suit, but criminal judgments are not covered.

PYQ Practice — Statement Analysis

1 The Inter-State Council was established in 1990.

True

On Sarkaria’s recommendation.

2 Zonal Councils are constitutional bodies.

False

They are statutory.

3 The Prime Minister chairs the Inter-State Council.