The Administrative Reforms Commission in its report on Centre-State Relations submitted in 1969 recommended, inter-alia that an Inter-State Council should be constituted under article 263 of the Constitution and that it might consist of the Prime Minister as Chairman and the Union Home Minister, the Union Finance Minister, leader of the opposition in the Lok Sabha and five representatives, one each from the five Zonal Councils, as members. The Commission noted that the phrase 'common interest' occurring inarticle 263 was a comprehensive one which might be construed to cover problems relating to or arising out of the Constitution, legislative enactments, administration and finance.
2.Rajamannar Committee:
A Centre-State Relations Inquiry Committee was set up by the then DMK Government of Tamil Nadu on 2nd September,1969 under the Chairmanship of Dr.P.V.Rajamanar to consider the entire question regarding relationship that should subsist between the Centre and the States in a federal set up. The Committee in its report recommended that "the Inter-State Council should be constituted immediately" and that "no decision of national importance or which may affect one or more States should be taken by the Union Government except after consultation with the Inter-State Council". The Committee further recommended that "every Bill of national importance or which is likely to affect the interests of one or more States should, before its introduction in Parliament, be referred to the Inter-State Council and its views thereon should be submitted to Parliament at the time of introduction of the Bill".
Sarkaria Commission:
3. Sarkaria Commission went at considerable length into the justification for establishing a permanent Inter-State Council as an independent national forum for consultation with a mandate well defined in accordance with article 263. The Commission recommended that for coordination of policies and implementation in a dual polity specially in view of large areas of common interest and shared action requires a sustained process of contact, consultation and interaction, for which a proper forum is necessary. The Commission observed that executive powers of the Union and States overlap in many areas and as such division of matters in Union List and State List is not absolute. Several entries overlap. Then in implementation of its laws and policy Union is largely dependent on State administrations. Union and States can entrust their executive functions to each other. States are dependent on Union for fiscal resources and in many administrative matters. Interdependence is indispensable in a diverse and developing society. Institutionalized and sustained consultation is indispensable in view of this interdependence. The Commission recommended setting up of a Council under article 263 of the Constitution for this purpose.
1st Centre-State relations Committee:- Sarkaria
2nd Centre-State relations Committee:- Madan Mohan Punchi
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