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N-11019/108/2006-Pol.I(Vol.II)

Ministry of Panchayati RajDate: 19th March, 2010

Subject: Revised Note on Decentralised Governance in the North Eastern States (NE)

1. Background1.1 The Second Administrative Reforms Commission (ARC in brief) in its Seventh Report

(Feb 08) entitled Capacity Building for Conflict Resolution has especially dealt with

Conflicts in the North East (NE) in Chapter 12. Besides dealing with the general theme of

capacity building in administration, the ARC has focused particularly on three aspects of Local

Government Institutions (LGIs), namely (i) Autonomous District Councils (Council in brief)

in the Sixth Schedule areas, (ii) Village level self governance therein, and (iii) Tribe specificCouncils in Assam. The relevant recommendations are listed in Thematic Appendix 1A.

1.2 The Ministry of Panchayati Raj (MoPR) had appointed an Expert Committee

(Committee in brief) chaired by Shri V. Ramachandran (an ARC member) in 2006 for

examining in detail functioning of the self-governing institutions under the Sixth Schedule.

The Committee submitted its Report in Sept. 2007. The major policy issues of self-governance

dealt by the Committee are naturally subsumed in the ARC recommendations. State-wise

recommendations of the Committee on general administration including finance, accounts and

audit are listed in Thematic Appendix 1B.

1.3 The relevant recommendations of the Third Report of the Standing Committee on

Institutional Issues relating to Tribal Development on Standards of Administration and

Governance in the Scheduled Areas with Dr Mungekar as Chairperson (Feb. 2009) have also

been incorporated in the proposals ( See Thematic Appendix 1C).

1.4 The NEHU Report (2008) has also been considered that has provided some factual

position on the ground.

2. Ideal and Reality of LGIs in Tribal Areas

2.1 Article 244 of the Constitution (Annexure 2) envisages three categories of Tribal

Areas, namely, (i) areas listed as Tribal Areas in the Sixth Schedule in NER, (ii) areas

notified as Scheduled Areas in the specified States, and (iii) areas not covered in the above

two categories. While the Sixth Schedule concerns Administration ofTr ibal Areas, the Fifth

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Schedule relates to Administration and Control of Scheduled Areas and Scheduled Tr ibes.

There is no special schedule for the rest (Annexure 3& 4).

2.2 Each tribal area mentioned in Para 20 of the Sixth Schedule is designated as an

autonomous district. The area inhabited by each of the tribes in a district may be carved out

as autonomous region. Each autonomous district is governed by a Distri ct Council (Council

in brief) and autonomous region by a Regional Council. This unique Council frame

comprises the third tier of legislature for Tribal Areas about matters specified in Para 3 of the

Sixth Schedule. These Councils, endowed with legislative, judicial and executive powers,

virtually function as state within state(See Thematic Appendix 3 & Annexure 6).

2.3 This ideal Constitutional frame has remained rather ineffective. As noted in NEHU study

(2008), most of the Councils could not even constitute village bodies and where constituted,

they remained ineffective except in mixed areas like Tripura. Similarly formal Courts havelittle work to do in the face of effective traditional system. The Councils have been formally

assigned developmental functions as well. They are, however, quite diverse, for example, from

the bare minimum functions for Councils in Meghalaya to extensive functions in Bodoland.

There is, however, general resistance to this function of District Councils from the State

Departments.

2.4 Perhaps considering this big gap between the ideal and the reality of self-governance

that Governors Conference (September, 2008) recommended Dispense with District

Council s in some NE States and introduce Panchayati Raj system for better development.Given the sensitivity and ground reality of NE, abolition of Councils may not be a feasible or

even desirable option.

2.5 The ARC and also the Expert Committee in this context have commended the

Provisions of Panchayats (Extension to the Scheduled Areas) Act, 1996, (PESA) (Annexure

1)as landmark legislation. The experience there-of can be a dependable guide in resolving

some of the vexed issues, especially harmonizing the traditional-formal interface, that have

rendered the Sixth Schedule virtually non-functional.

2.6 Part IX of the Constitution basically specifies the structural aspects of local

administration. So far as endowment of powers and assignment of functions to the local bodies

are concerned, Part IX abides by the scheme of Seventh Schedule. Art 243A leaves the

endowment of powers etc to the Gram Sabha to the State Legislatures. In the case of

Panchayats, however, Art 243G specifies some items including those in the 11th

Schedule that

maybe entrusted to the Panchayats by the State Legislatures in their discretion.

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2.7 Art 243M (4) makes a major departure from the above position about extending

provisions of Part IX to the Tribal and Scheduled Areas. The Parliament is empowered to

make any exceptions and modifications therein Notwithstanding any thing in this

Constitution. But the Parliament did not invoke this power while enacting PESA. It preferred

to outline the basic features of self governance in Section 4 of PESA and constrained theState Legislatures from making any law that is inconsistent with those features. These

features are unique in the realm of village governance. (See Para 20A of Thematic Appendix

5A, Annexure5)

3. The Constitutional Frame of LGIs in NE

The legal frame of LGIs in NE broadly comprise three typologies, viz., (i) Sixth Schedule

Frame (Meghalaya, parts of Assam, Mizoram and Tripura), (ii) State Legislation Frame

(Nagaland and non-Council Areas in Mizoram), and (iii) National Frame (Arunachal Pradesh,Sikkim, Manipur excluding hill areas and non-Council areas in Assam and Tripura).

Accordingly different Constitutional measures will be necessary for any reform in the specific

context of each State. (See detail s in Part 3 of Thematic Appendix 2)

4. The Broader North Eastern Perspective

The recommendations of the Commission and Committees have to be considered in the larger

context of self-governance in NE. For example, there is compelling need to balance security,

tribal identity and institutions, economic development and natural resource management.

Various attempts for achieving needed balance became infructuous because of the complexstructures, overlapping jurisdictions, ad hoc decisions and non-implementation of agreements

even when embodied in the Constitution. Important features of NE that must be taken in

account are given in Thematic Appendix 2A.

5. Frame for Dealing with ARC Recommendations and other Key Issues

The consideration of self-governance issues that follows, cover the ARC recommendations

and other key issues, under two broad sections, viz, A. Realigning Relevant Constitutional

Provisions, and B. Issues for Further Dialogue.

Part A

6. Realigning Relevant Constitutional Provisions

6.1 The issues that require realigning relevant Constitutional provision(s) are briefly presented

here. The relevant ARC/Committee recommendation(s) is (are) mentioned at the end. A

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detailed write-up on some issues, where necessary, is given in the related Thematic Appendix.

The proposed Constitutional amendments are given in Constitutional Appendices 1 to 3.

(i) Governance at the Village level in NE

6.1.1 The traditional self governing village institutions are strong throughout NE especially in

tribal territories. But the formal institutions such as the Village Council or Gram Sabha under

various State laws including the Sixth Schedule are rather weak. Accordingly, the traditional-

formal impasse continues (Para 2.3). This issue has been resolved under PESA in the

Scheduled Areas (Para 2.5 & 2.6). In NE, Nagaland has taken some ingenious measures in

Village Council Act, 1978. But there are some inherent anomalies therein like the Village

Development Board (VDB), analogous to the Gram Sabha, being answerable to traditional

Village Council (which is not a elected body) and an official functioning as its chairman (see

comparative Statement of Nagaland Village Council Act and PESA in Part 4 of Thematic

Appendix 2 Part 4 ). They have to be remedied in keeping with the spirit of rising democraticaspirations (see Thematic Appendix 5).

6.1.2 This traditional versus formal impasse is equally pervasive in Council Areas and other

tribal territories in NER. The core elements of PESA frame can be adopted as a model for

resolving the prevailing anomalous situation in NER. Accordingly, Schedule 6 may be

suitably amended to empower Gram Sabhas in Council Areas as in PESA. These provision

empowering Gram Sabha in the Sixth Schedule should be extended to the non-Council Areas

in all the NE States by amending Article 243A and adding a new Schedule 13 to the

Constitution regarding powers and functions of Gram Sabha. At the same time, democraticVillage Councils, with the option for election of Village Councils as per prevailing customary

practices if the Gram Sabha so decides, may be promoted, and an option for intermediate tier

may be created. Provisions for reservations for Scheduled Tribes etc. may be made in

accordance with the provisions in PESA, and for women in accordance with the proposed 50%

reservation in Panchayats. The mode of elections to all Councils may be brought in alignment

with those in Part IX of the Constitution for Panchayats and entrusted to the State Election

Commissions. The Councils may be empowered to undertake developmental functions as per

the Eleventh and Twelfth Schedule of the Constitution. Other issues such as the powers of

Panchayats throughout NE would be taken care of in the amendments to Part IX of theConstitution for the country as a whole, being proposed separately.

(ii) Urban Bodies in Tribal Areas

6.2 Local Government in general areas comprises of two parts, i.e., Panchayats (Part IX)

and Municipalities (Part IXA). But the jurisdiction of Councils in the Sixth Schedule is

unified. This unified Council frame should continue. In fact, as envisaged in PESA and

recommended by the ARC in its Report on LSG, the Sixth Schedule Council pattern could be

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followed in the whole country. The biggest challenge that people face in urbanization is from

(i) initial adverse forces in the 'transitional areas', and (ii) the backwash effect around

industrial/mining ventures. A provision should be made to identify both these special

categories of urbanizing areas in the Sixth Schedule and effective protection of tribal interests.

A provision should also be made for reservation of (i) not less than 50% seats and (ii) all theoffice, of Chairperson in all urban bodies in Tribal Areas for Scheduled Tribes and (iii) 50%

seats and offices of chairpersons should be reserved for women (see Themati c Appendix 7,

Constitutional Appendix 1).

(iii) District Council and District level Planning

6.3 Article 243ZD in Part IXA of the Constitution envisages constitution of a District

Panning Committee (DPC) at the district level. However Part IXA at the moment does not

apply to the Scheduled and Tribal Areas. Accordingly a provision should be made in the Sixth

Schedule to the effect that District Council itself, or sub Committee thereof, should also be theDPC where Council covers a whole district. In case a Council covers more than one district,

the DPCs of the districts concerned should be mandated to function under the guidance of the

Council. If the Council covers less than one district, there should be appropriate

representation of the Council in the DPC of that district.

6.4 With due recognition of their being Councils prior to the creation of Mizoram State, the

legislative powers of the three Councils in Mizoram can be enlarged as in Para 3A of the Sixth

Schedule to bring them at par with North Cachar and Karbi Anglong, apart from endowing the

three Mizoram Councils with all powers under Paragraphs 3A and 3B of the Sixth Scheduleand 11th and 12th Schedules.

(iv) Raising the level of administration of the Tribal and Scheduled Areas

6.5 Article 275 (1) underwrites the cost of raising the level of administration of Scheduled

Areas and Tribal Areas to that of the rest of the State concerned by the Union Govt. NE has a

special problem with regard to Assam as the reference State because of the changing status of

different areas within the erstwhile Assam. This anomaly should be made good by (i) a

provision for raising the level of administration of the entire Tribal Area in NER to the general

level in NER, and (ii) preparing a 10 years perspective plan with annual action plans with theapproval of Government of India, for raising the level of administration in all Tribal Areas to

the rest of the country, taking advantage of other area schemes as well. Separate annual plans

for raising the level of administration should be prepared by the States concerned under the

guidelines of MoTA along with the developmental plan. (See for detail s Thematic Appendix 4

and Constitutional Appendix 3)

(v) District Councils and State Finance Commissions (SFCs):

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6.6 The Committee has noted that some States that are outside the purview of Part IX have

not established SFCs. To ensure due consideration towards the finances of LGIs in the region,

the Governor may be empowered to set up a State Finance Commission with terms of

reference as in Art. 243I for reviewing the financial position of Panchayats and recommending

devolution of funds thereto from the State.

(vi) District Council, State Government, Common Commission and Governor

6.7.1 Governor is the final authority on administration of Tribal Areas in the Sixth Schedule.

He is answerable to the President. But there is no provision for Governors Report as in the

Fifth Schedule. The Sixth Schedule has a provision for appointment of Commissions by

Governors to report about the administration in Tribal Areas. ARC has recommended (Item

12d) to amend this Schedule to enable the Union to appoint a common Commission for all NE

Tribal Areas. Instead of making a provision in the Sixth Schedule, Article 339 (1) should be

amended to include Tribal Areas in its terms of reference (See Themati c Appendix 8,Constitutional Appendix 3 and Annexur e 6 & 7).

6.7.2 The Governor in the new frame will have a central role to play. The Union Govt. must

remain well informed about the state of administration and ensure concurrent corrective

measures. A provision should therefore,be made in the Sixth Schedule for Governors Annual

Report to the President (See Thematic Appendi ces 8, Constitut ional Appendix 1).

Part B

7. Issues for Further Dialogue

7.1 The ARC and other reports have thrown up a number of issues including the roles of

and inter-relationship amongst, various institutions in the NER, State-Council relations,

administrative reforms, needed improvement in finance, accounts and audit etc. There are also

other issues that need to be addressed such as those related to the Forest Rights Act and new

issues may emerge from time to time. It is proposed that a High Powered Committee

comprising MoPR, MHA, MoTA, MoE&F, DoNER, Planning Commission and MoF,

besides prominent public men be set up to address issues outlined below, and those that

may emerge from time to time.

(i) State-Council Relations and establishment of more Councils (Items 12 b, 12c)

7.1.1 The ARC has underlined the need for further dialogue amongst the Councils, the State

Governments and the Union about the strained State-Council relations. Some States like

Meghalaya and Mizoram consider the very concept of Councils as redundant. The other issues

include enlarging the legislative domain and further delegation of powers to Councils in

Mizoram, demand for establishing Councils in Arunachal Pradesh, Tribal Area status for hill

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areas in Manipur, establishment of tribe specific Councils in Assam and direct Central

assistance to the Councils. An important issue is whether the Governor should act on the

advice of Council of Ministers in the Council matters.

7.1.2 3 Councils covering whole of Meghalaya is not a very comfortable situation. However,it may not be feasible to abolish these Councils.

7.1.3 GoI has not accepted the proposals for establishment of Autonomous Councils in

Arunachal Pradesh, and tribe-specific Councils in Assam since Councils have not led to

effective basic changes in local governance in NE States and created tension with the State

Councils (Thematic Appendix 6).

7.1.4 Council status for hill areas of Manipur would not be desirable or feasible since their

area covers 9/10th

of the geographical area of the State and this could leads to conflict betweenthe Council & the State Government. The purpose of self-governance could be served by

empowering the Gram Sabha and Panchayats.

(ii) 7.2 Administrative & Financial Reforms

7.2.1 The new opportunity of strengthening self-governing institutions in NE should be used

for basic administrative reforms. The uniqueness of small-sized States should be harnessed in

terms of simpler systems with drastically reduced hierarchy engendering greater opportunities

for closer interaction between the people and the administration (See Themati c Appendix 10).

7.2.2 The Ramachandran Committee has made some state wise recommendations (See

Thematic Appendix 1B)regarding finance, accounts and audit. The implementation of these

recommendations should be incorporated in the Governors annual reports on the

Administration in Tribal Areas.

7.2.3 Direct transfer of funds to Councils would not be desirable, given the federal structure

of the Country. But State Governments may be mandated to follow an efficient and

transparent system of fund transfer as has been outlined in MoPRs advisory dated 23.02.2010(Annex 8).

(iii) 7.3 Forest Rights Act: (Item 1 h)

The Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Rights) Act, 2006

(FRA) is a landmark law about tribal rights in forests. This Act, however, does not extend to

the Tribal Areas in the Sixth Schedule, except in small stretches of Reserved Forests therein, if

any. This law also has far reaching implications for extensive Non-Council Areas in NER.

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There are some crucial matters like shifting cultivation, operationalisation of ownership of

Minor Forest Produce and powers of Gram Sabha to protect forests that have not been duly

considered so far. The High Powered Committee should study the situation in NE, especially

the above mentioned issues and report within 3 months (see Thematic Appendi x 9 for detai ls).

(iv) 7.4 Role of and inter-relationship amongst MoPR, MoTA, DoNER, NEC, ISC,

NCST and NEHU in NER (Items 5h, 15 d, e & h, 16e, 22a, 23a)

7.4.1 The ARC and other Reports have thrown up a number of issues about the roles of and

inter-relationship amongst, various institutions concerning the NE. The ARC has even

recommended abolition of DoNER. Seven major institutions noted above are responsible for

various administrative and developmental tasks. They must work in unison especially when

the basic structural change in administration in the form of an effective self-governing system

is being developed in NE.

7.4.2 The scope of direct involvement of MoTA in the affairs of Tribal Areas in the Sixth

Schedule has been limited in the context of limited Central role therein. In the new frame,

especially with the introduction of Governors annual reports to the President, this would

change.

7.4.3 The NEC is a prestigious body with all NE Governors and Chief Ministers as its

members. Inter-State disputes, therefore, should get resolved in the NEC parlays. The need for

ISC intervention, if at all, will be rare. The very presence of ISC, however, should serve as a

distant monitor. The NEC with direct link with the DPCs below and Planning Commissionabove, should function as the Chief Advisor of DoNER as also its representative in NER. NEC

should function as the Planning Commission for the NER. NEC should also promote, and

where necessary establish, Regional Training Institutes of excellence in the required

disciplines.

7.4.4 All the three reports under consideration are unanimous that the key to development

with equity, peace and harmony lies in the effective self-governance. The role of MoPR along

with MoTA and MHA in this situation is central. It should be responsible for providing

institutional support for promoting simple governance and legal frame, its dissemination,effective administration, concurrent monitoring coupled with effective incentives and

disincentives.

7.4.5 The presence of NCST in NE is rather weak. Its focus should shift from individual

complaints to the issues of Constitutional mandate. NCST should have a well-equipped field

unit for NER at Shillong, where NEC is located.

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7.4.6 NEHU should develop as a Center of advanced study in various disciplines. All Central

Universities in NER must work in unison. A Council of North-Eastern Universities (CoNEU)

should be established for this purpose. NEHU should serve as the Convener of CoNEU (see

for detail s on al l the above points Thematic Appendix 11).

8. Decisions required

A. Amendments in the Sixth Schedule and relevant Articles in the Constitution besides

adaptation of State Panchayat laws (Details in Constitutional Appendices 1-3) for

reinforcing self-governance in NE States as follows---

8.1 (a) (i)Council Areas:Laying the framework of self-governance in Sixth Schedule areas

by: taking out traditional Village Council from legislative jurisdiction of District Council, and

making it a Constitutional imperative; constitution of Village Councils by direct election or as

per prevailing customary practices if the Gram Sabha so decides by 2/3

rd

majority; constitutionof elected Municipalities in urban areas; adoption of powers and duties of the Gram Sabha as

per PESA template; option for constitution of elected Intermediate Councils in States with a

population above 20 lakhs; mandatory reservations for Scheduled Tribes and women in all

Councils; superintendence, direction and control of State Election Commission over elections

to all Councils and Municipalities; and devolution of powers for socio economic development

as envisaged in the 11th

and 12th

Schedule to the Councils and Municipalities (Para 6.1.1 &

6.1.2 with detail s in Theme Appendix 5 & Consti tuti onal Appendix 1);

8.2 (ii) Councils in Mizoram: Enlarging the legislative domain of the three Councils inMizoram as in Para 3A of the Sixth Schedule; (Para 6.4 and Consti tuti onal Appendix 1).

8.3 (b) Non-Council Areas in NER

8.3.1 Empowering Gram Sabhas in Non-Council Areas in all NE States: Adding a

Provision in Article 243A to the effect that the rights, duties and powers of Gram Sabha shall

be as per Schedule 13 to be added to the Constitution (Para 6.1.2 and Thematic Appendix

5A).

8.3.2 (ii) Hill Districts of Manipur: Amending sub-clause (2) of Clause 4 of Article 243Mauthorizing Parliament to extend the provisions of Part IX to the hill districts (See Themati c

Appendix 5A, Constitutional Appendix 2);

8.4 (c) Other Aspects of Governance

8.4.1 (i) Urban Bodies / Municipaliti es:Reinforcing the unified (rural & urban) District

Council frame of the Sixth Schedule with amendments to ensure (i) equitable sharing of

benefits of development, (ii) effective protection of tribal interests especially in the

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transitional areas and Zones of Urban Influence, and (iii) reservation of not less than 50%

seats and all positions of Chairpersons in urban bodies in Tribal Areas for STs (See Para 6.2,

Thematic Appendix 7, Consti tuti onal Appendix 1);

8.4.2 (ii) District Planning Committees: Designating the District Council as DistrictPlanning Committee in single District Councils mandating DPCs in multi-district Councils to

function under its guidance, and providing for appropriate representation of Councils covering

less than one district in the DPC. (See Para 6.3, Consti tuti onal Appendix 1);

8.4.3 (iii) Raising the level of Administration:Amending Article 275(1) for renewed

commitment for (a) raising the level of administration in all Tribal Areas to the level of entire

NER and (b) widening the perspective of raising the level of administration of all Tribal Areas

in the country to the national level within a decade or so by preparation to a 10 year

perspective plan and annual action plans in consultation with Government of India (See Para6.5, Constitut ional Appendix 3);

8.4.4 (iv) State Fi nance Commissions: Empowering the Governor of those States that have

not constituted State Finance Commissions to set up State Finance Commissions, with terms

of reference as in Article 243I (See Para 6.6);

8.4.5 (v) Enquiry about Administration:Amending Article 339(1) to add Tribal Areas

therein enlarging the jurisdiction of the Commission appointed by the President periodically

under this Article to report about the administration of the Scheduled Areas. (See Para 6.7.1,Thematic Appendix 9, Constitut ional Appendix 3);

8.4.6 (vi)Governors Report to President: extending executive power of the Union to Tribal

Areas in the Sixth Schedule and establishing an effective link through Governors Annual

Report to the President on their administration, as in the Fifth Schedule (See Para 6.7.2,

Thematic Appendix 8, Constitut ional Appendix 1);

8.4.7 (vii) Accounts and Audit:Making it mandatory for Village, Intermediate Councils and

Municipalities also to follow the guidelines of the Comptroller and Auditor General of Indiaregarding accounts and audit (Para 7.2 & Constitutional Appendix 1).

8.5 B. Issues for further dialogue

Constitution of a high powered Committee comprising representatives of MHA, MoPR,

Planning Commission, Ministry of Finance, MOTA, MoE&F and DoNER besides prominent

public men to make recommendations, among others, on the following issues:

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8.5.1 (i) State and Council Relati ons and establishment of more Counci ls:relationship

between the Councils and State Governments about the issues that remain unresolved;

dialogue with concerned Governments and Councils regarding the need of tribe specific

Councils and their role in the context of proposed empowerment of self-governing village

institutions (See Para 7.1, Thematic Appendi x 6);

8.5.2 (ii) Admin istrative and Financial Reforms: Administrative reforms in the NER aimed

at a simpler system with reduced hierarchy in smaller States and of direct interface between

the people and the administration; Forwarding State wise recommendations of Ramachandran

Committee regarding finance, accounts and audit for necessary action and report (See Para

7.2).

8.5.3 (iii)Forest Rights:examining implications of non-application of Forest Rights Act to

non-reserved forests in Sixth Schedule Tribal Areas and lack of a clear position about jhoom,ownership of MFP especially bamboo and powers of Gram Sabha to protect forest (See Para

7.3);

8.5.4 (vi)Role of and interrelationship among key institutions:Clear articulation of the role

of MoPR, MoTA, DoNER, NEC, ISC,NCST and NEHU in NER and organic inter-relations

amongst them for meeting the current challenges and achieving the national goals (See Para

7.4).

9. Views of Ministries / State Governments

9.1While considering the recommendations of the ARCs Seventh Report titled CapacityBuilding for Conflict Resolution, the Core Group on Administrative Reforms headed by

the Cabinet Secretary had stated that these issues would be considered in detail in the

CoS on the basis of a note to be circulated by MoPR. MoPR had circulated a draft note

on Decentralized Governance in the North-East, which was also discussed in inter-

Ministerial meetings held on 8th July, 2009 and 12th August, 2009. On the basis of

these discussions, the CoS Note was refined further and re-circulated on 18th

November, 2009, to the Ministries and State Governments indicated in Annex 9A.Responses received and MoPRs response are summarized below and details are at

Annex 9B & C.

9.2Ministry of DoNER and Department of Land Resources have supported MoPRsproposals, and have suggested that the States be consulted. It may be noted that the

CoS Note has been circulated to the State Governments. Further consultations will be

undertaken once a view is firmed up at the Union level.

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9.3Ministry of Tribal Affairs has stated that they support the need to have anadministrative and financial structure to lay down the extent of autonomy of

Autonomous Councils, and have also pointed out the likely mis-match between

hereditary traditional structures of North East Councils vis--vis provisions of Part IX

and Part IXA of the Constitution. It may be noted that MoPRs proposal does notmechanically apply provisions of Part IX & IXA to the NE region, but has been adapted

to the specific conditions in the area to promote grassroots democracy.

9.4Ministry of Home Affairs (MHA) has stressed the need for further dialogue with theStates, which is proposed as indicated above. Several features of MHAs Note on Sixth

Schedule Areas have been incorporated, as may be seen at Annex 8C. These include

composition of Village Councils on the basis of adult suffrage, provision for

Intermediate Councils, Rule making powers to District / Regional Councils regarding

constitution of Village & Intermediate Councils and Municipalities, constitution of

State Finance Commissions, powers to Councils / Municipalities as per Schedule XIand XII of the Constitution etc.

9.5The Planning Commission has supported MoPRs proposal, except for theestablishment of a separate State Finance Commission. However State Finance

Commissions are proposed to be set up only in States where these have not already

been set up.

9.6The Ministry of Urban Development has stated that consultation with StateGovernments may be considered as Local Government is a State subject. MoPRs

views are as per (9.2) above.

9.7Government of Sikkim has supported MoPRs proposal.10. The NE region is highly sensitive, and the CoS Note spans issues across several

Ministries. It is essential that there be an internal consensus within the GoI among various

Ministries before further dialogue with the States. Approval of the CoS is solicited for

proposals contained in para 8 of the Note.

(A.N.P. Sinha)

Secretary (PR)

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Consti tuti onal Appendices

Constitutional

Appendix

Proposed Constitutional Amendments Ref.para Page no.

1 Amendment in the Sixth Schedule 8.1, 8.2,8.4

17

2 Amendments in Part IX

(Exempted Areas in Article 243M)

8.3 27

3 Amendments in Other Articles

(Article 275)

8.4.3 28

Themati c Appendices

1A Recommendations of the Administrative Reforms

Commission

1.1 30

1B State wise Recommendations of Ramachandran Committee 1.2 35

1C Recommendations of Dr Mungekar Committee 3 38

2. Status of North-Eastern States with regard to Self-Governing

Institutions

3 39

2A The Broader North Eastern Perspective 4 45

3. Administration of Tribal Areas under the Sixth Schedule 2.2 47

4. Raising the level of Administration of Scheduled and Tribal

Areas

6.5 49

5. Governance at the Village level-1: Council Areas 6.1.1 51

5A. Governance at the Village level-2: General and Scheduled

Areas

2.7 54

6. Tribe specific Councils in Assam and new Councils in

Arunachal

7.1.3 65

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7. Urban Bodies in Tribal Areas 6.2 67

8. District Council, State Government and the Governor 6.7.1 70

9. Forest Rights Act 7.3 73

10. Reduced hierarchy & simpler system 7.2.1 74

11. Inter-relationship amongst National and Regional bodies in

NER

9.6 75

Annexures

1 PESA 2.5 83

2 Relevant Constitutional Provisions 2.1, 2.6 87

3 The Fifth Schedule 2.1 95

4 Abstract of the Sixth Schedule 2.2 98

5 Legislative Jurisdiction in Seventh Schedule 2.7 101

6 Autonomous District/Regional Councils 2.2 102

7 Role of Governor under Sixth Schedule 6.7 106

8 Efficient & simple Financial Management System and

online transfer and tracking of funds

7.2.3 107

9A Status of responses received from Ministries / State

Governments

9 110

9B Summary of responses received and MoPRs comments 9 111

9C Comments of Ministries on revised draft note for CoS on

Decentralised Governance in North Eastern States

9 117

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Constitutional Appendix 1

Amendments in the Sixth Schedule

1. A new Paragraph 1A may be added in the 6th Schedule defining the basic villagelevel institutions on the same lines as in PESA for the Scheduled Areas

1A Definitions

In this Schedule, unless the context otherwise requires,--

(a) Gram Sabha: Gram Sabha means a body consisting of persons whose names are inc luded

in the electoral rolls of the village within the area of the Village Council.

(b) Intermediate Council: Intermediate Council means an institution of self government

constituted below the district level as per para 2 of the Schedule.

(c) Municipality: Municipality means an institution of self government in urban areas

constituted as per para 2 of the Schedule.

(d) Village: Village means a habitation or a group of habitations or a hamlet or a group of

hamlets comprising a community and managing its affairs in accordance with its traditions

and customs.

(e) Village Council (by whatever name called amongst different communities): Village

Council means an institution elected by villagers on the basis of adult suffrage or in

accordance with the prevailing customary practices and usages as provided for in para 2 of

the Schedule.

2. Paragraph 2 shall be amended as follows:

(a) After the sub-para (2) of para 2 the following sub-para 2(i) shall be substituted,

namely:

(i) The rural area of an Autonomous District or Region shall be constituted into Village

Councils for a village or a group of villages.

(ii) All seats in the Village Council shall be filled by persons chosen by direct election.

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Provided that the Gram Sabha, if it so decides with a two thirds majority of the total electors in

the village, may elect the Village Council in accordance with its prevailing customary

practices.

(iii) The Governor, in consultation with the Autonomous District/ Regional Council,shall notify an area as an urban area of appropriate category as envisaged in Article243Q.

(iv) There shall be constituted in all urban areas Municipalities as envisaged in Article243Q.

(v) Intermediate Councils may be constituted in a State having a population exceeding20 lakh by the Governor in consultation with the District or Regional Council as the

case may be.

(vi) All seats in Intermediate Councils, if constituted, shall be filled by direct election. (b) The following 2 (6) (i) may be added to Para2 (6).

The Governor, in consultation with the District or Regional Council, as the case may be, shall

make rules to provide for

(i) the number of Village Councils to be constituted;(ii) the composition of the Village and Intermediate Councils and Municipalities and

the allocation of seats therein;

Provided that seats shall be reserved for communities as indicated in Part IX &IXA of the

Constitution as nearly as may be in proportion to their population where the proportion of

population of the reserved community is not less than 5%;

Provided further that the reservation for the Scheduled Tribes shall not be less than one-half of

the total number of seats;

And provided further that not less than one half seats in the Village and Intermediate Councils

and Municipalities shall be reserved for women.

(iii) the manner of election of chairpersons to the Village, and Intermediate Councils

and Municipalities.

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Provided that not less than one half of offices of chairpersons in Village and Intermediate

Councils and Municipalities shall be reserved for women by rotation.

Provided further that all offices of chairpersons of Village and Intermediate Councils and

Municipalities where the proportion of Scheduled Tribes is 5% or more, shall be reserved forthe Scheduled Tribes.

(iv) The District or Regional Council as the case may be shall make rules as to thedelimitation of territorial constituencies for the purpose of election to Village

and Intermediate Councils and Municipalities.

Provided that the ratio between the population of the territorial area of the Village and

Intermediate Councils and Municipalities and the number of seats in the Village and

Intermediate Councils and Municipalities to be filled by election shall, so far as practicable, bethe same throughout the autonomous districts/regions.

(v) The District or Regional Council, as the case may be, shall make rules withrespect to any other matter related elections and nominations to Village and

Inter-mediate Councils and Municipalities not specified in this Schedule.

(c) In paragraph 2, for sub-paragraph 6(A) the following sub-paragraph shall be

substituted, namely:-

(i) Every Council constituted under this Schedule, including a District, Regional,

Village and Intermediate Council and a Municipality, unless sooner dissolved under

any law for the time being in force, shall continue for five years from the date appointed

for its meeting and no longer;

(ii) No amendment of any law for the time being in force shall have the effect ofcausing dissolution of any Council which is functioning immediately before such

amendment, till the expiration of its duration under the law prevailing before this

amendment;

(iii) An election to constitute any Council viz., District, Regional, Village andIntermediate Council and Municipality shall be completed

a) before the expiry of its duration specified in clause (i) above;b) before the expiry of the period of six months from the date of its dissolution.

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(v) All Councils, Village, Intermediate, Regional and District, and Municipalitiesconstituted upon the dissolution of a Council before the expiration of its duration

shall continue only for the remainder of the period for which the dissolved

Council would have continued under clause (i) had it not been dissolved.

(d) In paragraph 2 after sub-paragraph (6A), the following shall be inserted:6(B) Subject to the provisions of this Schedule, the superintendence, direction and

control of the preparation of electoral rolls for the conduct of all elections to all the

Councils and Municipalities shall be vested in the State Election Commission of the

State constituted as envisaged in Article 243 K of the Constitution.

(e) In paragraph 2, point (a) of sub-paragraph (7) shall be deleted and the following sub-

paragraph 7 (A) shall be substituted namely:-

7A i) Each Village and Intermediate Council and Municipality shall after its first

constitution makes rules, with the approval of the District/Regional Council

concerned, with regard to the matters relating to its procedure and conduct of

business.

ii) The said rules shall be submitted to the concerned District/Regional Council by

the Village/Intermediate Council or Municipality for approval, which may be

accepted or returned by the concerned District / Regional Council with

comments, and suggested modifications, if any, within 30 days, subsequent towhich the concerned Village/Intermediate Council and Municipality shall

reframe its rules and resubmit to the District/Regional Council. In case no

comments are made by the District/Regional Council within 30 days, the rules

shall be deemed to have been accepted.

(f) In paragraph 2 after sub-paragraph (7), the following sub-paragraph shall be

inserted:-

2(8) The criteria for disqualification of a person from being elected to any Council orMunicipality shall be the same as those identified for Panchayats in Article 243F and

for Municipalities in Article 243V.

3. Paragraph 3 shall be amended as follows:

(a). The references in sub-paragraph (1) of Paragraph 3 pertaining to items in the following

shall be deleted:

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(i) Village Council in sub-clause (e),(ii) village administration and village police in sub-clause (f), and(iii)The entire sub-clause (g) dealing with succession and appointment of Chiefs andHeadmen.

(b) Paragraph 3A shall be amended as follows:

The clause the Chakma District Autonomous Council, the Mara District Autonomous Council

and the Lai District Autonomous Councilshall be added after the clause the North Kachar

Hills Autonomous Council and the Karbi Anglong Autonomous Council in Paragraph 3A of

the Sixth Schedule wherever the later Clause appears in the said Paragraph.

(c) Two new paragraphs 3C and 3D shall be added as follows:

3C. District Council to function as District Planning Committee: The District Council or a

committee constituted by the District Council shall assume the role of District Planning

Committee (DPC) with powers and functions as envisaged in Article 243ZD in case the

Council covers a whole district. In case a Council covers more than one district, the DPCs

of the districts concerned shall function under the guidance of the District Council. In

case a Council covers less than one district, representation of the area of that Council shall

be ensured in the DPC in consultation with the Council.

3D. Powers of Gram Sabha: The Gram Sabha shall have powers given in Annexure andsuch other powers as the Governor, in consultation with the District / Regional Council,

may deem necessary for effective self- governance at the village level. Provided that the

Gram Sabha may delegate such powers as may be deemed necessary to the Village

Council and the Council shall be accountable to the Gram Sabha.

4. Paragraph 6 shall be amended as follows:

(a) In paragraph 6 after sub-paragraph (2) the following sub-paragraph shall be inserted:

(i) Subject to provisions of this Constitution, the Legislature of a State shall, by law,

endow the Councils at the appropriate level and Municipalities with such powers and

authority, in addition to the powers specified in this Schedule, as may be necessary to

enable them to function as institutions of self government in respect of all functions

which can be performed at the local level including subjects listed in the Eleventh and

Twelfth Schedule.

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5. Paragraph 7 shall be amended as follows:

(a) After paragraph 7, the following paragraph 7A shall be inserted:-

All Councils and Municipalities shall prepare their own budgets following the principlesof financial prudence. The Governor shall have the power to approve the budget of

Autonomous Councils and the budgets of Village and Intermediate Councils and

Municipalities shall be approved by the District / Regional Councils.

(b) In paragraph 7 after sub-paragraph (2) following sub-paragraph shall be inserted:-

2(A) State Government shall release plan and non-plan funds by evolving criteria on the

basis of population, area and socio economic indicators for developmental activities and

to run the administration.

(c) In paragraph 7, after (4), the following sub-paragraph 4(A) shall be added namely:

4(A) Village and Intermediate Councils and Municipalities shall follow the guidelines

of the Comptroller and Auditor General of India with respect to accounts. The auditing

of the accounts of these Councils shall be as per guidelines issued by the C&AG.

6. After paragraph 8, the following paragraph 8(A) shall be inserted:

8A the Governor of a State shall, as soon as may be, in any case within one year from

the commencement of the Sixth Schedule to the Constitution (Amendment) Act, 2009

and thereafter at the expiration of every fifth year, constitute a State Finance

Commission as envisaged in of Article 243H and 243I.

Provided that if the State Government has already constituted a State Finance Commission for

the State, the same State Finance Commission may look after the work of the Sixth Schedule

areas.

7. A new Para 12Z be added as in the following:

12Z. Administration of urban areas:

(1) The Autonomous District/Regional Council shall have an Urban Affairs Committee to

oversee the process of urbanisation and ensure equitable development in the

District/Region.

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(2) There shall be a Standing Committee for Tribal Affairs in each Municipality for ensuring

that due care is taken of tribal interests in the master plan and regulations and laws about

the same.

(3) The District/Regional Council, shall periodically identify -(i)Special Growth Centers(SGC) marking the beginning of urbanization, and (ii) Zone of Urban Influence(ZUI) in

the periphery of all urban centers with the objective of ensuring development with equity.

8. A new Paragraph 12A may be added regarding Governors Report to the Presidentabout tribal areas as follows:

12A. Report by the Governor to the President regarding the administration of tribal

areas.The Governor of each State having tribal areas therein shall annually, or

whenever so required by the President, make a report to the President regarding theadministration of the tribal area in that State and the executive power of the Union shall

extend to the giving of directions to the State as to the administration of the said areas.

9. Paragraph 16 shall be amended as follows:

(a) In sub clause (b) of clause (1) of paragraph 16, the word twelve shall be

replaced by six in the fifth line.

(b) In the third and second lines respectively of first and second provisions to sub

clause (b) of clause (1), the word paragraph shall be substituted by sub-paragraph(c) Sub paragraph (2) and (3) of paragraph 16 shall be deleted.

10. The following shall be added after para 20(C):

20(D) Notwithstanding anything in this Schedule

a) The validity of any law/rule relating to the delimitation of the constituenciesor the allotment of seats to such constituencies made or purporting to be

made under paragraph 2 of this Schedule shall not be called in question inany court.

b)No election to any Council or Municipality shall be called in question exceptby an election petition presented to such authority and in such manner as is

provided for by or under any law made by the Legislature of a State.

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Annexure in Sixth Schedule / Schedule 13

[Paragraph 3D]

[Powers and functions of Gram Sabha]

1. Competence to resolve disputes in respect of all matters that are included in thisSchedule and other matters that may be specified under Nyaya Panchayat Act.2. Competence to safeguard and preserve the community resources including land, water,

forest and minerals

3. Ownership over minor forest produce4. planning and management of minor water bodies.5. Control over Village Panchayat6. Developmental Programmes : The powers to

(i) control over local plans and resources for such plans;

(ii) approve the plans, programmes and projects for social and economic developmentbefore such plans, programmes and projects are taken up for implementation by the

Village Panchayat;

(iii) identify and select persons as beneficiaries under the poverty alleviation and other

programmes:

(iv) conduct regular social audit at least once in two months to assess the progress of

any work or other activities taken up in the village by any agency what so ever,

expenditure incurred, quality, quantity and rates of materials purchased, wages

disbursed and such like as.

(v) certify utilisation of funds by Gram Panchayat on the basis of social audit.

7. Other Matters

(i) Regulation or restriction on the sale and consumption of any intoxicant;(ii) Managing village markets by whatever name called;(iii) Control over money lending;(iv) Control over institutions and functionaries in all social sectors;

8 Consultation with Gram SabhaConsultation with Gram Sabhas concerned before--

(i) making acquisition of land for development projects and before re-settling or rehabilitating

persons affected by such projects;

(ii) granting prospecting license or mining lease for minor minerals;

(iii) granting concessions for the exploitation of minor minerals by auction.

Explanation: The term concerned shall include all Gram Sabhas in the zone of influence

of proposed project- industr ial, mining, township and such l ike.

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Constitutional Appendix 2

Amendment in Part IX

Article 243AGram SabhaAdd the following provision in Article 243A

Provided notwithstanding anything in the Constitution, the Gram Sabhas in NE States shall hav

all the powers conferred on Gram Sabhas as per Schedule 13.

Article 243MPart not to apply to certain areas:

.

.

(4) Notwithstanding anything in this Constitution,

..

(b)Parliament may, by law, may extend the provisions in this Part to the Scheduled Areas and th

Tribal Areas referred to in clause (1) and hi ll areas in the State of M anipurreferred to in sub

clause (b) of clause (2) subject to such exceptions and modifications as may be specified is suc

law, and no such law shall be deemed to be an amendment of this Constitution for the purposes o

article 368.

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Constitutional Appendix 3

Amendments inOther Constitutional Provisions

1. Article 339

Control of the Union over the administration of Scheduled Areas, Tr ibal Areasand the

welfare of Scheduled Tribes:

(1) The President may at any time and shall, at the expiration of ten years from the

commencement of this Constitution by order appoint a Commission to report on the

administration of the Scheduled Areas, Tri bal Areasand the welfare of the Scheduled Tribes

in the States. The order may define the composition, powers and procedure of the Commission

and may contain such incidental or ancillary provisions as the President may considernecessary or desirable.

2. Article 275(1)

Grants from Union to certain States

(Second Proviso)Provided further that there shall be paid out of the Consolidated Fund of India

as grants-in-aid of the revenues of the State of Assamand other NE Statessums, capital and

recurring, equivalent to

(b) the costs of such schemes of development as may be undertaken by that State with the

approval of the Government of India for the purpose of raising the level of administration of the

said areas to that of the administration of the NE States.

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Thematic Appendices

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Thematic Appendix 1A

Recommendations of the Administrative Reforms Commission about Capacity Building

in Local Governance Institutions in the North East

1. Left Extremism

1eTraining and reorientation including sensitising the police and paramilitary personnel to the

root causes of the disturbances that they are seeking to curb, are necessary.

1h. For effective implementation of the Scheduled Tribes and other traditional Forest Dwellers

(Recognition of Rights) Act, 2006, multidisciplinary Oversight Committees may be

constituted to ensure that the implementation of this ameliorative legislation does not

adversely affect the local ecosystems.

1i. Special efforts are needed to monitor the implementation of constitutional and statutory

safeguards, development schemes and land reforms initiatives for containing discontent among

sections vulnerable to the propaganda of violent left extremism.

1k. Performance of the States in amending their Panchayati Raj Acts and other regulations to

bring them in line with the provisions of the Panchayats (Extension to the Scheduled Areas)

Act, 1996 (PESA) and in implementing these provisions may be monitored and incentivised

by the Union Ministry of Panchayati Raj.

5. Issues Related to Scheduled Tribes

5h. There should be convergence of regulatory and development programmes in the tribal

areas. For the purpose, a decadal development plan should be prepared and implemented in a

mission mode with appropriate mechanism for resolution of conflicts and adjustments.

10 Capacity Building in Administration in the North East

10a. A composite criteria for identifying backward areas (with the Block as a unit) based on

indicators of human development including poverty, literacy and infant mortality rates, along

with indices of social and economic infrastructure, should be developed by the Planning

Commission for the 12th Five Year Plan.

10c. Regional training institutions for various branches of administration, including the

technical services may be operated by the North Eastern Council.

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10e. NEC and the Ministry of Home Affairs may, in collaboration with the States, draw up an

agenda for administrative reforms for the region with its implementation being monitored

systematically. Satisfactory performance in implementation of this charter may qualify the

States to additional funding including special economic packages.

12 Sixth Schedule Councils

12a. To avoid complaints of less favourable treatment to Scheduled Areas in certain respects,

suitable amendment may be made in the Sixth Schedule of the Constitution to enable the

Autonomous Councils to benefit from the recommendations of State Finance Commissions

and the State Election Commissions provided respectively under Articles 243I and 243K of the

Constitution of India.

12b. The Union Government, Government of Meghalaya and the Autonomous Councils in that

State may review the existing pattern of relationship between the Councils and the State

Government to evolve a satisfactory mechanism to resolve conflicts between the Councils and

the State Government.

12c. Ministry of Home Affairs may, in consultation with the concerned State Governments and

the Autonomous Councils, identify powers under the Sixth Schedule that Governors may

exercise at their discretion without having to act on the aid and advice of the Council of

Ministers as envisaged in Article 163 (1) of the Constitution.

12d. Paragraph 14 of the Sixth Schedule may be suitably amended to enable the Union

Government to appoint a common Commission for all autonomous districts for assessing their

state of administration and making other recommendations envisaged in that paragraph. A

periodicity may also be provided for the Commission.

12e. Government of Assam should review the existing arrangements of determining budgetary

allocations and release of funds to the original Autonomous Councils with a view, as far as

practicable, to bringing them at par with the arrangements for the Bodoland TerritorialCouncil.

13. Village Level Self-governance in the Tribal North East

13a. Measures should be taken to ensure that all the Autonomous Councils pass suitable

legislation for establishing of village level bodies with well defined powers and a transparent

system of allocation of resources.

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13b. Stipulation may be made in the rules relating to release of grants to the Autonomous

Councils to the effect that passage of appropriate legislation for elected village level bodies

and its implementation, will entitle the Councils to additional funding.

13c. To enable the Autonomous Councils to discharge their responsibilities satisfactorily, it is

imperative that the requirement of funds by these bodies is worked out normatively with

reference to the minimum standards of service to be provided and capacity to raise local

resources. Such exercise could be undertaken by the State Finance Commission.

13d. Nagaland has made commendable efforts to usher in a paradigm of decentralised village

self-governance, which combines the elective element with traditional power centers. The

Ministry of Rural Development should formally recognise this arrangement for

implementation of various development and poverty alleviation initiatives.

13e. Government of Meghalaya may take steps for extension of the experiment of elected

village committees in the Garo Hills for implementation of the National Employment

Guarantee Act throughout the State for implementation of all rural development programmes.

13f. It is imperative that in all States where village bodies administer justice under customary

laws by virtue of the Sixth Schedule or other laws, such laws are duly codified.

14. Tribe Specific Councils in Assam and other Issues

14a. Government of Assam may apportion functions between the tribe specific

Councils/village Councils and the Panchayati Raj Institutions in a manner that schemes

involving individual tribal beneficiaries may be assigned to the Tribe Specific Councils

while area development schemes are left to the latter.

14b. State Governments may initiate a system of meeting at least the establishment costs of the

Councils from sources outside the tribal sub plan and build in these requirements in their

projections to the next Finance Commission.

14c. State Governments may take steps to identify innovative initiatives which could be

entrusted to the Tribe Specific Councils without affecting area development concerns.

14d. Suitable guidelines may be prepared for preparation of District and sub-District plans in

the relevant areas through joint efforts of the Tribe Specific Councils and the Panchayati Raj

Institutions.

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14e. While continuous and vigorous measures are needed to bring about a consensus between

various sections of society in Manipur about revival of the Hill Districts Councils, steps may

be urgently taken to bring in suitable legislation to introduce elected village level bodies in the

hill areas of that State.

15. Capacity Building in Regional Institutions in the North EastNEC and DONER

15d. The Planning Commission needs to lay down a framework for preparation of integrated

regional plans, with priorities and not as an assortment of schemes by the NEC. The regional

plan should focus on areas with a bearing on intra-regional, inter-State priorities which have

the potential of avoiding conflicts and promoting regional integration.

15e. Planning Commission should ensure the association of the NEC in the State planformulation exercise by suitably amending their guidelines.

15h. The Ministry for Development of North Eastern Region (DONER) may be abolished and

the responsibility for the development of the region, including the infrastructure sectors, and

utilisation of the non-lapsable fund should be restored to the subject matter Ministries, with the

MHA acting as the nodal Ministry.

16. Capacity Building in 0ther Regional Institutions in the North-East

16e. NEC and the Ministry of Home Affairs may, in collaboration with the States, draw up an

agenda for administrative reforms for the region with its implementation being monitored

systematically. Satisfactory performance in implementation of this charter may qualify the

States to additional funding including special economic packages.

18. Capacity Building in the North EastMiscellaneous Issues

18a. The recommendations of the High Level Commission contained in its Report

Transforming the North East - and the report of the Task Force on Development Initiativesprepared by the North Eastern Council should be implemented to fill the gaps in infrastructure

in the region.

18g. There is need for setting up of centers of excellence for professional and higher education

in the North East. In addition, a large-scale expansion of facilities for technical education, such

as ITIs, should be carried out to create a pool of skilled work force and generate

entrepreneurial capacity as well as employment.

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18h. There is a need to make an in-depth study of the customary judicial system in order to

achieve better understanding and dissemination of the prevailing norms and practices.

21. Civil Society and Conflict Resolution

21a. While social capital formation needs encouragement to improve delivery of services and

build community self reliance, it is imperative that such 2initiatives also attempt to involve

communities in in-house conflict resolution.

22. Institutional Arrangements for Conflict ManagementThe Inter-State Council22a. The conflict resolution role envisaged for the Inter-State Council under Article 263 (a) of

the Constitution should be effectively utilised to find solutions to disputes among States or

between all or some of the States and the Union.

23. Institutional Arrangements for Conflict ManagementThe National Commissionfor Scheduled Tribes

23a. The National Commissions for Scheduled Castes and Scheduled Tribes have an important

mandate to guide review and monitor the implementation of safeguards provided for SC/STs

in various fields, including in the2matter of their service conditions. It is imperative that the

focus of the two Commissions remains on policy and larger issues of implementation rather

than on cases of an individual nature which can be looked into by the administrative

Ministries/appropriate forum with the Commissions playing a critical oversight role.

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Thematic Appendix 1B

Important State-wise Suggestions by Ramachandran Committee not covered by

the points of action by the Union Government

1. Assam

1. Transfer of Subjects to the Councils as provided in the Sixth Schedule to be completed.

2. Representative bodies at the sub-district level: Legislation to be enacted by the Councils.

(a) Village CouncilsNagaland pattern may be adopted.

(b) Intermediate level arrangements Strengthening of Block Level Coordination

Committee in Bodoland Territorial Council (BTC) Areas.

3. Fiscal Decentralization:

(a) Annual Plan AllocationsPresent arrangement to continue .

(b) The Single Window System adopted for Bodoland Territorial Council (BTC) Areas toextended to other Autonomous Councils.

(c) Delegation of Financial Powers to Councils Such as signature of Utilization

Certificates (UCs).

(d) Central Sector Projects and Schemes relating to devolved activities to be handled by the

Councils.

4. Planning and Project Formulation

(a)Preparation of Annual and Five Year Plans by Councils.(b) Arrangements at the District Level Committee under Chairperson of District

Autonomous Council to prepare and consolidate the district plans.(c)Representatives of the Councils to be included in the State Planning Board(d)Flexibility of fund usageAutonomy in implementation of select schemes.(e)Strengthening project formulation capabilitiesHiring of Professionals and Experts.

5. Monitoring and Evaluation Setting up of Directorate of Economics, Statistics and

Monitoring and Evaluation in each Council to institutionalize monitoring and evaluation.

6. Employment Opportunities and Capacity Building Funds to be earmarked for skill

development.

2. Meghalaya1. District Councils to undertake reforms

Maximise participation of village people, women and the marginalized.

Setting up of village employment councils all over Meghalaya as development agencies.

The village Dorbar to continue with traditional powers may be given additional

regulatory powers.

2. Demarcation of jurisdiction between the State Government and District Council.

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3. Women may be represented in the Hill Councils.

4. Proposed bill for community level planning should be approved by the State Government.

5. Need for an intermediate institution between the village council and the district council.

3. Tripura1.Village Level Planning already done by Village Councils under the Gramodaya and

Nagarodaya initiatives to be continued,

2. As all districts comprise of both TTAADC and Panchayat areas, DPCs can be constituted in

all districts with due representation to representatives of TTAADC. District Collector may

be the Member-Secretary

3. TTAADC to nominate its members to the DPC. It should also be represented in the State

Planning Board and invited to State plan discussions in the Planning Commission.

4. System of sub zones and zones at the intermediate level to be harmonised with blocks, so

that there is only one common intermediate level.

4 Manipur

1. Constitution of District Councils- Immediate constitution of elected councils pending

decision of inclusion in Sixth Schedule.

2. Devolution of Subjects to the Councils District Councils be transferred departments of

health, animal husbandry, agriculture, public works, forests and small town administration.

3. Representative bodies at the sub-district level. Village Councils- Village Development

Bodies be constituted -Provisions of Hill Village Authority Act 1956 be operationalized in

consultation with the traditional tribal chief or NREGA arrangement be adopted.4. Harmonization between Traditional Councils and Village Development Bodies

5. Annual Plan Allocations to be communicated to the district and villages.

6. Centrally Sponsored Scheme allocations to districts and village levels be publicized

7. District planning guidelines to be issued immediately on the pattern of Planning

Commission guidelines.

8. Strengthening project formulation capabilities- technical advisory committees be constituted

by the District Planning Body.

5. Mizoram1. Operationalising devolution of subjects to the District Councils Activity Mapping of the

roles of the State Government, District Council, the Village Council and the District

Administration required.

2. Issuing guidelines on decentralized planning patterned on Planning Commission Guideline.

3. Ensuring transparency of Annual Plan allocations- .

4. Release of Annual Plan Allocations regular Fund transfers from State to District

Councils- Monthly/ quarterly basis. Transfers in respect of funds for CSS to be monitored

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for one year. In case of delay, direct funding of Councils be considered. Releases to village

councils to be communicated to each village council. Data base of bank accounts of village

councils to be compiled.

5. Administrative reform of the District Council Administration: The Governor may constitute

a group to come out with a blue print for reform.6. Strengthening project formulation capabilities: Project consultants be hired by the district

councils.

7. Coordination and Monitoring Committee be constituted either within the State Planning

Board or under the Chief Secretary with the CEMs of all the three Councils and Deputy

Commissioners as members, NGOs, associations of women and the youth and selected

chairpersons of the village council

6. Nagaland.

1 Village Level Planning-Nagaland has a time tested system of village councils and villagedevelopment boards. System of assessment of VDBs is under consideration. VDBs could be

classified into performing, average and non-performing to work out a basket of incentives.

Rural Department officials assist the VDBs in planning. Experts may be empanelled to

assist VDBs.

2. Arrangements at the District Level-Guidelines for the District Planning Board be reworked

to align the process of planning with the Eleventh Plan and preparation of a consolidated

District Plan including the State Sector plans and the VDB plans.

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Thematic Appendix 1C

Select Recommendations of Mungekar Committee

on Standards of Administration and Governance in the Scheduled Areas

3 (ii) (c) Issue of Guidelines about the role, responsibilities and functioning of Gram Sabhs

honouring their competence

3(iv) Guidelines for ensuring that the Gram Sabha should become fully functional in the image

of village republic within this year6(iii) PR Institutions as decision making bodies,

implementation the exclusive domain of administration

7(i) Raising the level of administration as envisaged in Article 275(1).

9(vi) Urban Centers as pulsating centers of holistic development.

12 The issues of implementation of Forest Rights Act.

5.11 (vi) Separate budget head and Demand for TSP.

5.11.2 Principle of supplementation: The principle of supplemental was crucial. The earlier

practice of matching grants was discontinued. All partners must contribute to the best of

their capacity while the nodal authority was committed to supplement to the desiredextent. The supplemental outlay was non-lapsableThe spirit of supplementation could not persist for long. Now the State Governments often

are not willing to make a claim for central funds on the ground of their own constraints for

bringing their own share.

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Thematic Appendix 2

Part 1: Status of North-Eastern States with regard to Self-Governing Institutions under

Part IX and Part IXA of the Constitution and Special Constitutional Provisions

*The relevant points in these Articles are given in the page that follows.

State/Autonomous

Councils

Areas Covered by Areas ExemptedSpecial

Const.

ProvisionsPart IXPart

IXA

as 6th

Schedule

Areas Otherwise

Part IX IX A

1. Arunachal Pradesh

No ADC Nil

2. Assam

Three ADCs

Other Areas

371B*

3. Manipur

(i) Hill areas

(ii) Valley

371C

(243M )(2)(b)

4. Meghalaya

Three ADCs(No other areas)

Nil

5. Mizoram

Three ADCs

Other areas

371G

(243M(2)(a)

6. Nagaland

Tuensang RegionalCouncil under 371A

(243M)(2)(a)

371A

7. Sikkim

No special area

371F

8. Tripura

One ADC

General areas

Nil

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Part 2: Special Constitutional Provisions:

Article 371-A: This Article enacted after Naga Hills-Tuensang Area became a separate State

has extensive special provisions. In particular it envisages that

(i) no Act of the Parliament on subjects specified therein will apply to the State without theapproval of State Assembly;(ii) the Governor shall have special responsibility about law and order in the State; and(iii) a Regional Council shall be established for Tuensang with Deputy Commissioner in

chair. It functions under guidance of the Governor. No Act of Nagaland Assembly shall

apply to Tuensang unless authorised by the Governor, on the recommendations of the

Regional Council.

Article 371B: The Article envisages establishment of a committee of the Legislative

Assembly elected from tribal areas.

Article 371C: The hill areas in the state of Manipur largely inhabited by tribal communities

are not covered by the 6th Schedule. The special provision envisages constitution of Hill Areas

Committee of State legislature. The Governor is mandated to report to the President regarding

the administration of hill areas.

Article 371F: According to this Article

(i) Governor has special responsibility for peace and making, in his discretion, equitablearrangement for ensuring the social and economic advancement for different sections of the

population of Sikkim;

(ii) President can extend any enactment of any State with such restrictions or modifications to

Sikkim as he may deem necessary as also remove other difficulties; and

(iii) Parliament may, for the purpose of protecting the rights and interests of the different

sections of the population of Sikkim may make provision for the number of seats in the

Legislative Assembly of the State of Sikkim, which may be filled by candidates belonging tosuch sections.

Article 371G:The Article envisages that no Act of Parliament with regard to matters specified

there in, including customary law and transfer of land, can apply to Mizoram unless the State

Legislative Assembly by a resolution so decides.

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Article 371H: The administration of the then North East Frontier Agency, now the State of

Arunachal Pradesh, was a special responsibility of the Governor of Assam. The special

provision for Arunachal Pradesh in this Article envisages special responsibility of the

Governor in respect of law and order. Accordingly, the tribal state of Arunachal Pradesh is

doubly ignored. It has no special provision for administration as envisaged for tribal areas inNorth East under the 6th Schedule or even Schedule Areas in other States.

Part 3: The Legal Frame of Self-Governance in NER and its Implications:

3.1 In sum, the States in NER broadly comprise three legal typologies as follows-

(a)Sixth Schedule Frame: The Council areas, that is, entire Meghalaya, parts of Assam,Mizoram and Tripura are governed by the provisions of Sixth Schedule. Parts IX and

IXA of the Constitution have not been extended to these areas so far.(b)State Legislation Frame: Part IX does not cover (i) Nagaland and (ii) non-Council

Areas in Mizoram. In their case the State laws continue as they are.

(c)National Frame: The national self-governance frame in Part IX (Panchayats) and PartIXA (Municipalities) covers (i) Arunachal Pradesh, (ii) Sikkim, (iii) Manipur excluding

hill areas and (iii) non-Council areas in Assam and Tripura.

Note: The hill areas of Manipur have been excluded from the purview of Part IX but without

any provision for an alternative creating vacuum in the legal frame for this area.

3.2 The States in Frame (a) are dependent on Parliament under Article 243M (4) (b) for

extension, if any, of the national Panchayat Raj (PR) frame to the tribal areas. The tribal States

in Frame (b) can incorporate, on their own, the provisions of Part IX under Article 243M (4)

(a), in their State laws. But these provisions have covered in routine the States in Frame (c)

including Arunachal Pradesh, a predominantly tribal State. Consequently the special benefit of

PESA for Scheduled Areas is not available to Arunachal Pradesh.

3.3 Part IXA covers entire NER except Council Areas in Frame (a) with no indicationabout their future. Therefore, the provision about District Planning Committees (DPC), centralin decentralized planning, is presently not available to Council Areas in NER and also

Scheduled Areas elsewhere.

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Part 4: Comparison of Nagaland Act and PESA

Nagaland Village Council Act 1978 PESA

A. Constitution of VC / VPVillage council (VC) chosen as per

customary practice

Hereditary chief, Gaonbura and Angs

members of VC

VC to choose chairperson

Village Panchayat (VP) elected as in Part IX

Reservation for STs and women BCs as per State

law.

VP Chairperson directly or indirectly elected as

per Part IX

B. VDB / Gram SabhaVillage Development Board (VDB): all

permanent residents of village.

DC / ADC chair person of VDB.

Management Committee of VDB chosenby VC. Women members not less than one

fourth.

Decisions of the Management Committee

taken in meetings open to the public.

Disputes of VDB Management Committee

first settled by VC, subsequently

DC/ADC/; then State Government.

Gram Sabha (GS): All persons in village.

Gram Sabha meetings organized as designated in

State Acts (usually chaired by VP Chairperson)

C. Powers of VC / VPVC has powers to

i) formulate development schemes andassist government in developmentworks

ii) Borrow money, receive grants andsubsidies, lend to villagers

iii) Supervise maintenance of publicassets, education and welfare

activities

iv) Maintenance of law and orderv) Consent of VC needed for transfer

of immovable propertyThough VC does not have judicial powers

by law, in actual fact exercises them.

Powers devolved to VPs as per State laws.

Following mandatory in PESA areas:Gram sabha or panchayats at appropriate level:

(i) Be consulted for land acquisition & RR(ii) Recommend grant of prospecting licence,

mining lease and concession for exploitation

(minor minerals)

(iii) Prohibit / regulate intoxicants(iv) Ownership of minor forest produce(v) Prevent alienation of land

(vi) Manage village markets(vii)

Control over money lending(viii)Control over social sector institutions andfunctionaries

(ix)Control over local plans and resourcesD. Powers of VDB / GS

(i) Subject to directives of VillageCouncil, VDB to exercise financial and

developmental functions

(ii) Management Committee of VDB

In addition to above:

(i) GS competent to safeguard and preserve thetraditions and culture of people, their cultural

identity, community resources and

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entrusted with management and funds

of VDB.

(iii) VDB to place accounts before theVillage Council, Village Council may

cause VDB accounts to be audited.

customary mode of dispute resolution.

(ii) GS to approve plans, etc for development.iii) Responsible for selection of beneficiaries.

(iv) VP to obtain certification of utilization offunds from GS

E. Intermediate Institutions Role of S/GNo intermediate institutions

State Level Advisory Board headed by

Minister to review functioning of Village

Councils and advise about allotment of

funds

Intermediate and District Panchayats as

prescribed under Part IX.

State Legislatures to endeavour to follow pattern

of Sixth Schedule at district level.

State Legislation to be in consonance with

customary law, social and religious practices and

traditional management practices of community

resources

State Panchayat Acts articulate powers of StateGovernments.

F. Parallel Bodies State Government to constitute

Boards or Committees or declare

any local authorities and

Delegate powers w.r.t. education,water supply, roads, forests, power

sanitation, health and other welfare

and development Schemes.

Persons authorized by S/G havepower to inspect. S/G may declare an authority

incompetent

Panchayats and Gram Sabha are to exercise

control over institutions and functionaries in all

social sectors.

Conclusions

Nagaland Village Councils lack elements of democracy, while Panchayats in PESA aredemocratic

Community subordinate to VCs in Nagaland while PESA makes Village Panchayataccountable to community

State Government enjoys wide powers in Nagaland, in PESA State legislation to be inconsonance of practices of community

PESA like provisions or PETA to be promoted

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Thematic Appendix 2A

The Broader North Eastern Perspective

Some important special features of NER are:

(i) NER is a sensitive region. There is compelling need to balance security, tribal identity and

institutions, economic development and Natural Resource Management.

(ii) Various attempts for achieving needed balance became infructuous because of the complex

structures, overlapping jurisdictions, ad hoc decisions and non-implementation of

agreements even when embodied in the Constitution.

(iii) The Constitutional innovation of Councils in NE has become ineffective over time, mainly

because of non-resolution of the contradiction between traditional institutions enjoying the

strength of custom and usage and formal institutions having legal powers on paper.

(iv) The District Councils in most cases have not constituted Village Councils. And where

constituted, they have remained ineffective in the face of strong traditional Councils.

(v) The establishment of formal courts, as brought out in NEHU study, has made no significant

contribution in the administration of justice so far. The dispute resolution in Council areas

is largely dealt by the traditional system.

(vi) The role of Councils is not appreciated in Meghalaya and Mizoram. There is impasse in

Manipur, due to non-recognition of hill areas as tribal area. The formal position of

Councils is better in Assam due to its long experience. Five new Councils have been

formed under State law and a few more are under consideration.

(vii) The establishment of some Councils and even States in NER is rooted in accords between

Government and concerned tribes. This has led to variation in Councils powers. For

example, Bodo Territorial Council and Karbi Anglong Council in Assam have been given

extensive powers that is causing discontentment amongst others especially North Cachar

Hills Council.

(viii) The District level self-governing institutions in NE are quite varied. There are District

Panchayats in Part IX areas and District Councils in tribal areas. Nagaland has no district

level body. State deals directly with Village Councils.

(ix) Part IXA does not cover Council areas. The urban bodies in Council areas, albeitrare, are

functioning under Council laws and regulations enacted under the Sixth Schedule.(x) The States are reluctant to devolve funds to Councils. There is no devolution of funds

from National Finance Commission or State Finance Commissions even where they are

established.

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Thematic Appendix 3

Administration of Tribal Areas under the Sixth Schedule

Tribal Affairs is not formally included in any of the Lists of the Seventh Schedule. Butthere are substantial provisions in various Articles in the Constitution. Part X concerns the

Scheduled and Tribal Areas. The provisions of the Sixth Schedule apply, under Article 244(2),

to the administrationof tribal areas in the States of Assam, Meghalaya, Tripura and

Mizoram. The provisions of the Fifth Schedule apply, under Article 244(1), apply to the

admin istration and control of the Scheduled Areas and the Scheduled Tribes in any State

except the four covered by the Sixth Schedule.

Article 339 concerns the Control of the Union over the administration of the Scheduled

Areas and the welfare of S