Inter-State Council & Zonal Councils — Cooperative Federalism Mechanisms

Inter-State Council (Article 263)

Constitutional Basis

Article 263 of the Constitution empowers the President to establish an Inter-State Council when it appears that public interest would be served by such a body. The Article specifies three possible duties of such a Council:

1. Inquiring and advising on disputes that have arisen between States
2. Investigating and discussing subjects in which the States, or the Union and one or more States, have a common interest
3. Making recommendations for better co-ordination of policy and action on such subjects

Note: Article 263 does not make the Inter-State Council mandatory — it is discretionary for the President. Also, its role in dispute resolution is advisory, not adjudicatory (unlike the Supreme Court under Article 131).

Establishment

The Inter-State Council (ISC) was established on 28 May 1990 by a Presidential Order, acting on the recommendation of the Sarkaria Commission (which submitted its report in 1988). The Sarkaria Commission had recommended the creation of a permanent inter-governmental body for Centre-State coordination.

Composition of the Inter-State Council

A Standing Committee of the ISC assists in continuous deliberation between full Council meetings.

Functions in Practice

The ISC meets periodically (though not on a fixed schedule) to discuss:

• Centre-State relations and federal balance
• Implementation of Sarkaria Commission recommendations
• Inter-State river water disputes and their resolution
• Law and order issues affecting multiple States
• Coordination on economic policies and social legislation

Punchhi Commission (2010) also recommended strengthening the ISC and making it more active.

Limitations of the Inter-State Council

• Recommendations are not binding — only advisory
• Meets infrequently — long gaps between sittings have been criticised
• No enforcement mechanism for its recommendations
• Dominated by the Union executive (PM chairs it) — seen as limiting genuine inter-State deliberation

Zonal Councils

Statutory Basis

Unlike the Inter-State Council (constitutional), Zonal Councils are statutory bodies established under the States Reorganisation Act, 1956. They are not mentioned in the Constitution.

They were set up on the recommendation of the States Reorganisation Commission (Chairman: Justice Fazl Ali, 1953–55).

The Five Zonal Councils

Note: There are 5 Zonal Councils but no North-Eastern Zonal Council — the north-eastern States are governed by the North-Eastern Council (NEC), established under the North-Eastern Council Act, 1971.

Composition of Each Zonal Council

Functions of Zonal Councils

1. Discussing matters of common interest — economic and social planning, border disputes, transport, industry
2. Recommending policies and schemes to the Union and State governments
3. Resolving inter-State disputes relating to boundaries, rivers, and resources through dialogue
4. Fostering emotional integration among States in the zone
5. Reviewing the progress of development schemes in the zone

Zonal Councils vs Inter-State Council

Role in Cooperative Federalism

Both the Inter-State Council and Zonal Councils are instruments of cooperative federalism — the idea that Centre and States must work together as partners rather than as rivals.

• They provide institutionalised forums for dialogue, reducing the need for constitutional litigation
• Zonal Councils in particular encourage regional cooperation on shared infrastructure, trade, and security
• The ISC plays a role in the periodic review of Centre-State relations and federal reforms

However, both bodies have been criticised for being underutilised — their potential as federalism strengthening tools remains largely unrealised due to infrequent meetings and lack of follow-up mechanisms.

Recent Developments (2024–2026)

Inter-State Council Meeting — Activation After Years of Dormancy

The Inter-State Council (ISC) — established under Article 263 in 1990 on the Sarkaria Commission's recommendation — had a meeting in 2023 after a hiatus (the last meeting before that was in 2016). The ISC is chaired by the Prime Minister and includes all Chief Ministers, six Union Cabinet Ministers, and Administrators of UTs with Legislatures. The resumption of ISC meetings follows increased Centre-State tensions (Governor controversies, GST devolution disputes, criminal law implementation).

ISC Standing Committee meetings were also held to discuss Centre-State coordination on the new criminal laws (BNS, BNSS, BSA), which require uniform implementation across states despite police being a state subject.

UPSC angle: Prelims — ISC established 1990; Article 263; Sarkaria Commission recommendation; PM is Chairman. Mains — critically evaluate the ISC as a cooperative federalism mechanism; why has it been underutilised? What institutional reforms could strengthen it?

Zonal Councils — Southern Zonal Council on Cauvery and Language (2024)

The Southern Zonal Council (comprising Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, and Telangana) has remained the most active zonal council given persistent inter-state disputes in the region — Cauvery water (Karnataka–Tamil Nadu), border disputes (Karnataka–Maharashtra for Belgaum/Belagavi), and language policy tensions. The SZC meeting in 2024 addressed coordination on flood relief, infrastructure sharing, and the implementation of the CWMA's Cauvery water directives.

The Zonal Councils are chaired by the Union Home Minister and served by the Ministry of Home Affairs. They are advisory and recommendatory — their utility depends on political will to implement resolutions.

UPSC angle: Prelims — 5 Zonal Councils (Northern, Southern, Western, Eastern, Central); chaired by Union Home Minister; States Reorganisation Act 1956; North-East Council is separate. Mains — compare the Inter-State Council (Article 263) and Zonal Councils (statutory) as federalism instruments; analyse their effectiveness in the current political climate.

NITI Aayog — Governing Council as De Facto Federal Forum (2024–2025)

The NITI Aayog Governing Council (PM as Chairperson, all CMs and LG/Administrators as members) continued to serve as an informal replacement for the Planning Commission's federal coordination function. In 2024–2025, key Governing Council meetings discussed PM Gati Shakti infrastructure coordination, climate goals, and digital governance convergence between Centre and States.

However, critics argue the Governing Council cannot substitute for the formal ISC, which has a constitutional basis under Article 263 and whose decisions have a more authoritative standing.

UPSC angle: Prelims — NITI Aayog Governing Council (not Article 263, no constitutional basis). Mains — compare the NITI Aayog Governing Council with the Inter-State Council as federal consultation mechanisms; which is better suited for resolving Centre-State disputes?

Exam Relevance

Prelims traps:

• Zonal Councils are statutory, not constitutional — do not confuse with ISC
• ISC established in 1990 on Sarkaria Commission's recommendation
• ISC Chairman: Prime Minister; Zonal Council Chairman: Union Home Minister
• There are 5 Zonal Councils — North-East is covered by a separate NEC under a different act
• ISC under Article 263; Zonal Councils under States Reorganisation Act, 1956

Mains angles:

• Cooperative vs competitive federalism — role of ISC and Zonal Councils
• Critique: neither body has binding powers; recommendations not enforced
• Sarkaria and Punchhi Commission recommendations on strengthening ISC
• Centre-State relations in a coalition era vs single-party majority era — does it change the dynamics of these councils?