19-Jul-2022: Centre-States Relations
The Inter-State Council (ISC), set up under Article 263 of the Constitution, has been assigned the duties of investigating and discussing such subjects in which some or all of the States or Union and one or more of the States have common interest; make recommendation for better co-ordination of policy and action with respect to these subjects; and deliberate upon such other matters of general interest to the States.
In the second meeting of the Inter-State Council held on 15.10.1996, the ISC has set up a Standing Committee under the Chairmanship of Hon’ble Home Minister for continuous consultation and processing matters for consideration of the Council.
The Five Zonal Councils created under provision of States Reorganization Act, 1956 also provide a meeting ground to States and UTs in each Zone for resolution of inter-state and regional issues, fostering balanced socio-economic regional development and building harmonious Centre-State relations.
The ISC and the Zonal Council provide a strong mechanism for cooperative Centre-State relations on various matters including key social, economic planning, infrastructure, security, environment, inter-state transport and other issues for inclusive and equitable growth and sustainable development. In recent times, the number of meetings of the Zonal Councils have seen a significant rise.
During the last five years, 3 meetings of Standing Committee of the ISC, 12 meetings of Zonal Councils and 13 meetings of their Standing Committees were convened which deliberated a large number of inter State and Centre-State issues and resolved many of such issues.
There are well established mechanisms in place for good governance and for implementation of various schemes and programmes for citizen’s welfare.
25-May-2018: Inter-State Council Standing Committee completes its deliberations on Punchhi Commission report
The Standing Committee of the Inter-State Council (ISC) headed by the Union Home Minister Shri Rajnath Singh has completed the onerous task of deliberations on all the 273 recommendations of the Punchhi Commission. Today's meeting was the 13th meeting of the Standing Committee of the ISC.
During the previous two meetings of the Standing Committee of the ISC held last year thorough deliberations were held on the recommendations contained in Volumes II to V of the Punchhi Commission’s Report.
Today, the Standing Committee examined in detail various recommendations of the Punchhi Commission contained in the remaining two volumes i.e. VI & VII (contained a total of 88 recommendations).
The recommendations in Volume VI of the Punchhi Commission report are related to Environment, Natural Resources and Infrastructure and cover the subjects on (a) Environment; (b) Water; (c) Forests; (d) Minerals and (e) Infrastructure.
The recommendations in Volume VII related to Socio-economic Development, Public Policy and Good Governance and cover the subjects on (a) Public Policy, Constitutional Governance and Public Administration; (b) Socio-political Developments and its Impact on Governance; (c) Basic Needs of People, Directive Principles and State Accountability, Centrally Sponsored Development Schemes and Federal Relations; (d) Migration, Human Development and Challenges to Constitutional Governance; and (e) Good Governance and Delivery of Public Services.
The Punchhi Commission notified in 2005 submitted its report in 2010. The recommendations of the Punchhi Commission, which are contained in seven Volumes pertain to History of Centre-State Relations in India; Constitutional Governance and Management of Centre-State Relations; Centre-State Financial Relations and Planning; Local Self-Governments and Decentralized Governance; Internal Security, Criminal Justice and Centre-State Cooperation; Environment, Natural Resources & Infrastructure; and Socio-Economic Development, Public Policy and Good Governance. The issues have been analysed in the Inter-State Council Secretariat.
The 67 recommendations in Volume II on ‘Constitutional Governance and the Management of Centre-State Relations’ of the report were considered by the Standing Committee in its 11th meeting held on 9.4.2017. 118 recommendations contained in Volumes III, IV & V of the Punchhi Commission's Report were considered by the Standing Committee in its 12th meeting held on 25.11.2017.
Today’s meeting concluded successfully after over two hours of deliberations. In his concluding remarks, Shri Rajnath Singh expressed satisfaction that the Standing Committee of the ISC, over a series of meetings since 2017, has completed deliberations on all the 273 recommendations of the Punchhi Commission Report. These recommendations of the Standing Committee finalized in the earlier two meetings as well as in today's meeting will be placed before the Inter-State Council for decision. With this, the work on Punchhi Commission Report, that had been pending for the last eight years, has been completed. It may be noted that the ISC meeting in 2016 was held after a gap of 10 years. Under the chairmanship of Shri Rajnath Singh, the institutions of ISC Standing Committee as well as Zonal Councils were rejuvenated and regular meetings held to promote harmonious Centre-State relations.
29-May-2020: Finance Commission holds meeting with Ministry of Power on Power Sector Reforms
The Finance Commission headed by Sh. N. K. Singh and including its Members and senior officials today held a detailed meeting with the Power Ministry headed by the Union Minister for Power, Shri R. K. Singh on issues relating to the Reforms of the Electricity Sector in the States. This was in continuation to the recommendations made on the power sector by the Finance Commission in its report for the financial year 2020-2021.
As a lead-up to the Commission’s next report for the Financial Year 2021-2026 and taking into consideration the announcement of Rs. 90,000 crores Liquidity Injection for Electricity Distribution Companies (DISCOMs) by the Finance Minister, Smt. Nirmala Sitharaman, as one of the 15 measures in the first of the five tranches to combat the economic disruption from the coronavirus lockdown, which had stretched the finances of the Power DISCOMs. The Finance Minister’s announcements reflected the Prime Minister’s priority in accelerating Power Sector Reforms and taking up issues which have endemically hurt the Power Sector.
The Minister for Power highlighted to the Commission the current disconnect in the structures of the power system between decision making by the State Government and the financial consequences thereof, which are borne by the DISCOMs leading to losses. The Minister emphasized the need for the State Governments to be also conjointly responsible for the financial health of their fully owned DISCOMs. Towards this end the borrowing limits of the State Governments under the FRBM Act, needed to be recalibrated to take these liabilities into account. This would bring to fore the responsibility of the State Governments under whose control the DISCOMs operate. It will also bring financial transparency and bring about financially and managerially responsible behavior of the States with respect to DISCOMs.
The Minister briefed the Commission about the reforms in the pipeline for the turnaround of the DISCOMs. This included the new tariff policy which is under consideration for approval. It includes path breaking reforms in the power sector. Amendments are proposed to the Electricity Act of 2003. The Minister informed the Commission that the old schemes of the Ministry are being amalgamated into a new scheme for which he requested the Commission's for a support of Rs. 3 lakh crores over a five year period. This scheme would primarily focus on steps for reduction of losses, separate feeders for agriculture and smart prepaid meters.
The Chairman and Members while appreciating the Power Minister for the initiatives being taken in the power sector provided useful suggestions to the Ministry on the issues of regulatory capture, financial engineering, sustainability of reforms, etc.
It will be recalled that the 15th Finance Commission in its report for FY 2020-21 noted that most States have reduced, to some extent, their aggregate technical and commercial (AT&C) losses and the difference between average cost of supply and average realizable revenue (ACS-ARR) after implementation of the Ujjwal DISCOM Assurance Yojana (UDAY) in 2016-17. However, the progress did not appear to be sustainable unless systemic issues in the power sector are suitably addressed. In view of the above, the Minister and the Commission felt that robust and systemic reforms are required to improve the health of the power sector.
The Commission assured the Ministry of Power that it fully take into consideration the suggestions of the Ministry in its deliberations and while making its final report.
26-Dec-2018: President order for establishment of High Court in Andhra Pradesh
WHEREAS article 214 of the Constitution provides that there shall be a High Court for each State; AND WHEREAS the Andhra Pradesh Reorganisation Act, 2014 (6 of 2014) (hereafter in this Order referred to as the said Act) was enacted with a view to provide for the reorganisation of the existing State of Andhra Pradesh and for matters connected therewith;
AND WHEREAS clause (a) of section 30 of the said Act provides that the High Court of Judicature at Hyderabad shall be the common High Court for the State of Telangana and the State of Andhra Pradesh till a separate High Court for the State of Andhra Pradesh is constituted under article 214 of the Constitution read with section 31 of the said Act;
AND WHEREAS sub-section (1) of section 31 of the said Act provides that subject to the provisions of section 30, there shall be a separate High Court for the State of Andhra Pradesh (hereafter in this Order referred to as the High Court of Andhra Pradesh) and the High Court of Judicature at Hyderabad shall become the High Court for the State of Telangana;
AND WHEREAS sub-section (2) of section 31 of the said Act provides that the principal seat of the High Court of Andhra Pradesh shall be at such place as the President may, by a notified Order, appoint;
AND WHEREAS the Supreme Court of India in the matter of Union of India Vs. T. Dhangopal and Ors [SLP (civil) No. D. 29890 of 2018] held that there is no embargo for the Competent Authority to issue a notification bifurcating the High Court of Judicature at Hyderabad into the High Court of Telangana and the High Court of Andhra Pradesh respectively and such a notification to be issued by the 151 day of January, 2019 so that the two High Courts start functioning separately and the High Court of Andhra Pradesh also starts functioning in the new building at the earliest and accordingly, the appeal was disposed.
Now, THEREFORE, in pursuance of article 214 of the Constitution and the Order issued by the Supreme Court of India in the aforesaid matter and in exercise of powers conferred under clause (a) of sub-section (1) of section 30, sub-section (1) of section 31 and sub-section (2) of section 31 of the Andhra Pradesh Reorganisation Act, 2014, the President hereby constitutes a Separate High Court for the State of Andhra Pradesh, namely, the High Court of Andhra Pradesh, from the 1st day of January, 2019 with the principal seat of such High Court at Amaravati in the State of Andhra Pradesh and the High Court of Judicature at Hyderabad shall become the High Court for the State of Telangana.