Recently, The Inter-State Council has been reconstituted with Prime Minister Narendra Modi as the chairman.

• The Standing Committee of the Inter-State Council (ISC) was also reconstituted with Home Minister Amit Shah acting as its chairman.

Structure of the Reconstituted Council

• Chairman: Prime Minister
• Members: The Chief Ministers of all the States and union territories having a legislative assembly and administrators of union territories not having a legislative assembly.
• • Nine Union ministers will also serve as members of the council
• Permanent Invitees: 13 Union ministers as permanent invitees.

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About The Standing Committee of the Inter-State Council (ISC)

• Members: It will include 12 other members of which senior Union ministers and chief ministers from seven states, including Maharashtra, Odisha, and Andhra Pradesh are included.
• Function: 
• • To facilitate continuous consultations on issues considered by the broader Inter-State Council. 
  • It is responsible for reviewing and processing issues related to Centre-State relations before it being presented to the ICS
  • The committee also monitor the implementation of ISC recommendations

About the Inter-State Council

• The Inter-State Council is a Non Permanent Constitutional body set up under Article 263 of The Constitution of India.
• Establishment: The  ISC was first established on 28 May 1990 by a presidential order on recommendation of the Sarkaria Commission.
• Aim: The body is constituted to encourage dialogue, resolve disputes, and address concerns related to federal governance and inter-state cooperation.
• Responsibilities:
  • Dispute Resolution between Centre-States: The ISC acts as a mediator in resolving disputes between States by facilitating discussions, and provides recommendations for amicable settlements.
  • Collaborative Policymaking: The council serves as a platform to discuss and investigate subjects of common interest to multiple States or the Union or one or more States leading to coordinated policy decisions.
  • Policy Coordination and Recommendations: The ISC makes recommendations on various subjects and issues which promote consistent and effective implementation of policies across the country.
• Role in Promoting Cooperative Federalism: 
  • Facilitating Policy Coordination: ISC provides an effective forum for dialogues,  discussing policies and resolving disputes between states and the central government.
    • Example: ISC was involved in coordinating the implementation of the Goods and Services Tax (GST) across states.
  • Uniformity in Legislation: ISC ensures uniformity in laws across states as it provides a platform for coming together of various governments.
    • Example: ISC discussions led to the alignment of state laws with the central government’s Agricultural Produce Market Committee (APMC) Act reforms.
  • Conflict Resolution: ISC addresses inter-state disputes and recommends measures for amicable solutions.
    • Example: The ISC’s role in mediating the Cauvery water dispute between Karnataka and Tamil Nadu.
  • Strengthening Federal Structure: The forum promotes decentralization by advocating for greater state autonomy in certain domains.
    • Example: Recommendations for decentralizing subjects under the Concurrent List to states, as suggested by the Punchhi Commission.
  • Sharing Best Practices: The ISC is also a forum where the states can deliberate upon the implementation of best practices in other states.
  • Monitoring Implementation: The ISC develops a system to monitor the implementation of its recommendations. 

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• Challenges: 
  • Not a Permanent Body: ISC not being a permanent body  is not mandated to meet at regular time intervals undermining its effectiveness.
    • Example: Despite its establishment in 1990, the ISC has met only a few times, impacting its ability to address ongoing issues.
  • Advisory Role: ISC has limited authority as it has only an advisory function with its  recommendations not binding, limiting its influence.
    • Example: Many recommendations on police reforms and public order remain unimplemented due to their non-binding nature.
  • Resource Constraints: ISC does not possess adequate resources  like necessary staff and financial resources to conduct detailed studies and follow-up actions and administrative support which hampers its effective functioning.
  • Political Will: Political differences and lack of commitment from states and the center hinder ISC’s potential.
    • Example: Political disagreements often delay consensus on critical issues like fiscal federalism and devolution of powers.
  • Functional  Duplication: ISC’s role sometimes overlaps with other inter-governmental bodies, leading to functional duplication.
    • Example:  Overlaps with the National Development Council (NDC) and the Finance Commission reduce the ISC’s distinct utility.