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INTER-STATE RELATIONS
By Snehil Tripathi Sir
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Contents
Inter-State Water Disputes ........................................................................................................... 2
Inter-State Councils ...................................................................................................................... 3
Functions ............................................................................................................................. 3
Establishment ....................................................................................................................... 3
Composition ......................................................................................................................... 3
Inter-State Trade and Commerce .................................................................................................. 4
Constitutional Provisions ...................................................................................................... 4
Judicial Interpretations ......................................................................................................... 4
Zonal Councils .............................................................................................................................. 5
Organizational Structure ....................................................................................................... 5
Objectives ............................................................................................................................ 5
Functions ............................................................................................................................. 6
North Eastern Council (NEC) ......................................................................................................... 6
Conclusion ................................................................................................................................... 6
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Inter-State Relations
The Indian Constitution provides various mechanisms to ensure cooperative federalism and smooth
relations between states. These provisions aim to prevent disputes and facilitate coordination
between different units of the Indian Union.

Inter-State Water Disputes

Water disputes between states are a significant challenge in India. The Constitution includes the
following provisions to address such disputes:

• Entry 56 of the Union List: Grants Parliament the power to regulate and develop inter-state
rivers and river valleys.

• Entry 17 of the State List: Empowers states to manage water resources, including irrigation,
water supply, water storage, embankments, canals, water power, and drainage.

• Article 262: Allows Parliament to legislate on inter-state water disputes. It can also bar the
Supreme Court and other courts from exercising jurisdiction over such disputes.

• Laws enacted by Parliament under Article 262:

o The River Boards Act, 1956: Enables the Central Government to set up River Boards
(on the request of state government) to advise on the planning and development of
inter-state rivers.

o The Inter-State Water Disputes Act, 1956:

▪ Establishes tribunals for adjudicating disputes when negotiations fail.

▪ The judgement of these tribunals is binding and cannot be challenged in

courts.

Inter-State Water Dispute Tribunals in India

Year of Current
Tribunal States Involved Award/Decision
Formation Status

Krishna Water Maharashtra, Karnataka,

1969 Dissolved Award given in 1976
Disputes Tribunal - I Andhra Pradesh

Maharashtra, Andhra
Godavari Water
1969 Pradesh, Karnataka, Dissolved Award given in 1980
Disputes Tribunal
Madhya Pradesh, Odisha

Madhya Pradesh,
Narmada Water
1969 Rajasthan, Gujarat, Dissolved Award given in 1979
Disputes Tribunal
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Maharashtra
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Year of Current
Tribunal States Involved Award/Decision
Formation Status

Ravi & Beas Water Punjab, Haryana, Tribunal term

1986 Matter sub judice
Tribunal Rajasthan extended

Cauvery Water Tamil Nadu, Karnataka, Final award in 2007,

1990 Dissolved
Disputes Tribunal Kerala, Puducherry notified in 2018

Maharashtra, Karnataka, Award given in 2013,

Krishna Water Tribunal term
2004 Andhra Pradesh, some matters
Disputes Tribunal - II extended
Telangana subjudice

Tribunal
Vansadhara Water Award yet to be
2010 Odisha, Andhra Pradesh dissolved in
Disputes Tribunal published
2022

Mahadayi (Mandovi)
Goa, Karnataka, Tribunal Award given in 2018,
Water Disputes 2010
Maharashtra Exists some matters pending
Tribunal

Mahanadi Water Tribunal Matter under

2018 Chhattisgarh, Odisha
Disputes Tribunal Exists adjudication

Inter-State Councils
• Article 263: Empowers the President to establish an Inter-State Council if deemed necessary
for coordination between states.

Functions:
o Investigating and advising on disputes between states.

o Discussing subjects of common interest between states and the Centre.

o Promoting uniformity in policies.

Establishment:
o Recommended by the Sarkaria Commission.

o Established in 1990 under Prime Minister V.P. Singh.

Composition:
o Prime Minister (Chairman)

o Chief Ministers of all states

o Chief Ministers of Union Territories with legislative assemblies

o Administrators of Union Territories without legislative assemblies

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o Governors of states under President’s Rule

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o Six Union Cabinet Ministers nominated by the Prime Minister

• The council is a recommendatory body and meets at least thrice a year.

• The meeting is assisted by a secretariat called the Inter-State Council Secretariat.

Inter-State Trade and Commerce

The Constitution ensures the free flow of trade and commerce across states while allowing certain
restrictions in the public interest.

Constitutional Provisions
Article Provision Key Points

Article Freedom of Trade, Trade, commerce, and intercourse shall be free throughout
301 Commerce, and Intercourse the country (both inter-state & intra-state).

Parliament can impose restrictions in the public interest but

Article Power of Parliament to
cannot discriminate between states (except in cases of
302 Regulate Trade
scarcity).

(1) States cannot discriminate in trade between states.

Article Restrictions on
303 Discriminatory Laws (2) Parliament can remove this restriction in case of scarcity
of essential goods.

Article States can impose taxes on imported goods from other

Taxation by States
304(a) states/UTs only if similar local goods are also taxed.

States can impose reasonable restrictions in the public

Article
Trade Restrictions by States interest, but such laws require prior approval of the
304(b)
President.

Article Allows state or central government monopolies in trade

Nationalization of Trade
305 sectors, limiting private participation.

Article Authority for Trade Parliament may establish an authority to oversee trade and
307 Regulation commerce regulations (not constituted yet).

Judicial Interpretations
• Atiabari Tea Co. Case (1961): Any taxation restricting trade violates Article 301 unless
justified under Article 304(b).

• Automobile Transport (Rajasthan) Ltd. Case (1962): Reasonable restrictions for public
welfare are permissible.
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Zonal Councils
• Zonal Councils are Statutory bodies established under the Reorganisation of States Act,
1956.
• They play a crucial role in resolving disputes, fostering economic and social development,
and enhancing collaboration among states and the Union
• The act divided India into five zones, considering factors such as:
o Natural divisions of the country
o River systems and means of communication
o Cultural and linguistic affinity
o Economic development, security, and law & order requirements.

Zonal Council States Covered Headquarters

Northern J&K, HP, Punjab, Haryana, Rajasthan, Delhi, Chandigarh New Delhi

Central UP, Uttarakhand, MP, Chhattisgarh Prayagraj

Eastern Bihar, Jharkhand, West Bengal, Odisha Kolkata

Western Gujarat, Maharashtra, Goa, Dadra & Nagar Haveli, Daman & Diu Mumbai

Southern Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Kerala, Puducherry Chennai

• The councils are only advisory and deliberative bodies.

• They meet at least twice a year.

Organizational Structure
Each Zonal Council consists of:

• Chairman: The Union Home Minister heads all Zonal Councils.

• Vice-Chairman: The Chief Ministers of the member states act as Vice-Chairpersons on a

rotational basis for one year.

• Members:

o Chief Ministers and two other ministers from each state.

o Two representatives from Union Territories in the zone.

• Advisers:

o One member from NITI Aayog (earlier Planning Commission).

o Chief Secretaries and another nominated officer (Development Commissioner) from

each state in the zone.

Objectives:
•
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Promoting national integration by reducing regional disparities.

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• Preventing regionalism, linguism, and state-centric consciousness that may weaken

national unity.
• Facilitating inter-state cooperation by exchanging ideas and best practices.
• Enhancing coordination between the Centre and States for the successful execution of
development projects.

Functions:
• Economic and Social Planning: Coordinating regional development strategies among states.

• Border Disputes: Helping states resolve boundary-related conflicts amicably.

• Linguistic Minorities: Addressing concerns related to language and cultural preservation.

• Inter-State Transport: Ensuring smooth movement of goods and people across state borders.

• State Reorganization Issues: Resolving matters arising from the reorganization of states
under the States Reorganisation Act, 1956.

• Additionally, the North Eastern Council (NEC) functions similarly for northeastern states
under a separate Act of 1971.

North Eastern Council (NEC)

• A statutory body established under the North Eastern Council Act, 1971.

• It comprises all North Eastern states: Assam, Manipur, Mizoram, Arunachal Pradesh,
Nagaland, Meghalaya, Tripura, and Sikkim.

• Composition:

o Chief Minister and Governor of the states

o Three members nominated by the President

o Union Home Minister (Chairman)

o Minister of Development of North Eastern Region (Vice-Chairman)

• The Chairman and Vice-Chairman are also appointed by the President.

• Plays a key role in planning and development for the region.

Conclusion
The constitutional framework for inter-state relations ensures cooperative federalism by balancing
autonomy with coordination. However, challenges remain, particularly in inter-state water disputes
and trade barriers. Strengthening dispute resolution mechanisms and enhancing cooperation
through councils can further improve inter-state relations in India.
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