national development council

8/10/2019 NATIONAL DEVELOPMENT COUNCIL

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ROLE OF NATIONAL DEVELOPMENT COUNCIL

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

THE DEGREE OF LL.M. ONE YEAR

CENTRE-STATE RELATIONS AND THE INDIAN CONSTITUTION

DECEMBER,2014

Submitted By:

VAINY GOEL

RAJIV GANDHI NATIONAL UNIVERSITY OF LAW, PUNJAB


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CONTENTS

1) INDRODUCTION ......................................................3

2) NATIONAL DEVELOPMENT COUNCIL ......................................................5

a) COMPOSITION OF NDC .....................................................6

b) COMMITTEES OF NDC ......................................................7

c) MEETINGS OF NDC .....................................................8

3) EVALUATION ......................................................9

4) PROBLEM .....................................................12

5) APPRAISAL .....................................................13

6) NEW ERA ....................................................16

7) CONCLUSION ....................................................17

8) BIBLIOGRAPHY .....................................................19


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INTRODUCTION

Every Constitution has its own unique character reflecting the history and disposition of

its people. It forms, as it were, the basic feature which do not change even with the

passage of time. Republicanism, rule of law, independent judiciary and guaranteedindividual rights are inter-alia, inherent characteristics of the Indian Constitution. An

issue which has been often raised by some of the commentators of the Indian Constitution

is the federal nature of the Indian Union. While, some of them says that it is quasi-federal

and others says that it is more of unitary in nature with many federal features. The Indian

political system, like the federal experiments elsewhere in the world, has passed through

many phases of federal polity. In the beginning it was viewed as quasi federal. With the

passage of time it acquired a new look in the eyes of the political scientists and it was

hailed as cooperative federalism and it was also dubbed as unfederal in character by

many writers. Thus, different opinions have been expressed by the political thinkers,

regarding the nature of Indian federal system, from time to time. 1 Viewing the scheme of

legislative, administrative and financial relations between the centre and States and

provisions relating to Emergency, some scholars are of view that Indian Federalism is

characterized by such a strong centre that the Indian political system can easily be labeled

as unitary, with certain features of federal. Dr. B.R.Ambedkar observed that :

"The federation will consist of the Union at the Centre and States at the periphery, each

endowed with the sovereign power, to be exercised in the field, assigned to them by the

Constitution. Yet the Constitution avoided the tight mould of federalism in which the

American Constitution was caught and could be both unitary as well as federal, according

to the requirements of time and circumstances."

The fact is that, Indian constitutional system stands on the foundation of Co -operative

Federalism. Morris Jones designates it as 'bargaining federalism'. 2

Though there is division of function between the centre and the units in a federation, yet

it would not be correct to assume that the various governments act in a water-tight

compartments. As these governments act side by side in the same country, inevitably

1 R.K. Choubey, Federalism, Autonomy and Centre-state Relations , Satyam Books Publication, 20072 W.H. Morris Jones , Government and Politics in India , London Huthinson, London,1964, p. 150.


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many types of relations arise amongst them and many instrumentalities to promote

intergovernmental co-operation came into existence. Apart from constitutional and legal

machineries, such as Inter-state council, River water dispute tribunal, University Grant

Commission, etc., there are various extra-Constitutional and informal devices for

consultations between the Centre and the States for securing the co-operation and co-

ordination among the states. The foremost of these are the Planning Commission and the

National Development Council. Besides, Planning Commission, National Development

Council and Inter-State Council, other Inter-governmental forums in India are the Chief

Minister's Conferences, Governor's Conferences, Inter-Governmental Ministerial

Conferences, Chief Secretaries Conferences, Zonal Councils, Inter-state Tribunals and

National Water Resources Council. 3

3 http://shodhganga.inflibnet.ac.in/handle/10603/3541


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NATIONAL DEVELOPMENT COUNCIL

The National Development Council (NDC) or the Rashtriya Vikas Parishad, an apex

body for decision making on development matters, was set up on 6 August 1952. it was

established to strengthen and mobilize the effort and resources of the nation in support ofthe Plan, to promote common economic policies in all vital spheres, and to ensure the

balanced and rapid development of all parts of the country. The Council comprises of the

Prime Minister, the Union Cabinet Ministers, Chief Ministers of all States or their

substitutes, representatives of the Union Territories and the members of the Planning

Commission. 4

It is an non-constitutional and non-statutory body. National Development Council came

into existence in August 1952 as a result of the resolution issued from the Cabinet

Secretariat. The main Functions of the NDC, as set out in the resolution are:

1. to review the working of the national plan from time to time

2. to consider important question of social and economic policy affecting national

development.

3. to recommend measures for the achievement of the aims and target set out in the

National Plan including measures to secure the active participation and

cooperation of the people, improve the efficiency of the administrative

services,ensure the fullest development of the less advanced regions and sections

of the community and through sacrifice, borne equal and build up resources for

national development. 5

The National Development Council has been evolved as an administrative agency

to achieve the fullest co-operation and co-ordination in planning between the

Central Government and State government and to bring about uniformity of

approach and unanimity in the working of the National Plans. The functions of NDC incllude inter alia, formulation of guidelines, consideration of the national

plan formulated by the Planning Commission, considerations of issues of social

4 http://interstatecouncil.nic.in/Ndc.html5 ibid
http://en.wikipedia.org/wiki/Cabinet_of_Indiahttp://en.wikipedia.org/wiki/Chief_Minister_(India)http://en.wikipedia.org/wiki/Planning_Commission_(India)http://en.wikipedia.org/wiki/Planning_Commission_(India)http://en.wikipedia.org/wiki/Planning_Commission_(India)http://en.wikipedia.org/wiki/Planning_Commission_(India)http://en.wikipedia.org/wiki/Chief_Minister_(India)http://en.wikipedia.org/wiki/Cabinet_of_India


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and economic policies relating to national development and review of the working

of the plan from time to time. 6

Composition of NDC:

The National Development Council comprises the Prime Minister of India, theChief Minister of all the States and the members of the Planning Commission.

The Prime Minister who is the Chairman of the Planning Commission acts as the

secretary of the Council. The Union Ministers and State Ministers in-charge of the

related subjects are also invited to participate in its deliberations. Some concerned

officers and outside experts may also be invited. The NDC meetings are held at

least twice a year: meetings are frequent when the Five year Plans are being

formulated. The Council is always kept informed about the progress of the plans. 7

The issue of reorganization of National Development Council was taken up by the

Administrative Reforms Commission in 1967. The Administrative Reforms

Commission in its Report on the Machinery for Planning (interim) had

recommended that the National Development Council should be reconstituted as :

1. The Prime Minister

2. The Deputy Prime Minister, if any

3. The Central Ministers of

Finance

Food and Agriculture

Industrial Development and Company Affairs

Commerce

6 Anil Kumar Jana, Administering Dictrict Plans in India, Concept Publishing Company, New Delhi, 2004, pg2687 S.A. Palekar, Development Administration, PHI Learning Private Limited, New Delhi, 2012, pg. 84


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The size of the NDC is quite big which reduces the utility of this body as a forum

for effective discussion. As a result, in 1954, the Council set up a smaller standing

committee. In 1993, there were six Committees of the NDC set up, following the

43rd National Development Council meeting held in 1992-93, to go into some of

the critical areas of development

a) Committee on austerity

b) Committee on population

c) Committee on employment

d) Committee on micro-level planning

e) Committee on literacy

f) Committee on medical education

Such committees place their reports before the NDC for final decision and

recommendation. These committees represent a marked improvement in

the role-effectiveness of the National Development Council. 10

Meetings of NDC:

The agenda of a particular meeting of the NDC consists of

a) Items suggested by the Planning Commission itself

b) Items suggested by the Central Ministers

c) Items suggested by the State Governments

The meetings of the NDC start with an address from the Prime Minister. The Secretary of

the council prepares a memorandum on each item of the agenda which is circulated

among the members in advance.

10 Ramesh.K.Arora, Rajni Goyal , Indian Public Administration : Institutions and Issues , Wishwa Prakashan,New Delhi, 2005


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EVALUATION

The National Development Council gives its advice at various stages of the formulation

of a plan, and it is only after its approval has been obtained that a plan is presented to the

Parliament for consideration. The council has been largely responsible for giving Indian plans a truly national character. Its functioning, since its inception, reveals that there is

hardly any matter of importance which it is not competent to discuss. Its pre-occupations

are many and varied, and a persual of its original terms of reference fails to provide a

total picture of its actual functioning. It has been quite successful in bringing and linking

the Union Government, the Planning Commission and the various State Governments. It

has served a good forum for discussions and free exchange of ideas, and has created a

sense of high responsibility on the part of the State Governments for making the plans a

success. It has developed a very earthy convention of not putting its resolutions to vote

and taking decisions almost unanimously. In addition, it concerns itself with important

questions of social and economis policy afeection national development. 11

It has laid stress on balanced development in different parts of the country and to this

end, it has favoured decentralised industrial production, setting up of suitable indicators

of general development as well as a continuous study of the problem of diminishing

regional disparities. 12 It has also favoured the introduction of Panchayati Raj system. In

the words of the formenr Vice-Chairman V.T. Krishnakaramchari, "It provides the forum

which the Union ministers and Chief ministers of States discuss the plans at important

stages in their formulation. Plans are also approved at its meetings after completion and

before they are presented to the parliament and the State legislature. in this way, national

character of the plans is emphasized. the council also considers socio and economic

policies affecting the country from the national point of view so that where necessary,

uniformity may be secured. in this way. it gives a lead to the country on broad issues of

policy and promotes collective thinking and joint action on matters of nationalimportance."

11 N.B. Gupta, J.L.Raina, H.M.Jauhari, B.N.Jaurhari, Nehru and Planning in India , Concept Publishing Co.,New Delhi 12 Jain M.P., Constitution of India, Eastern Publishing Company, Allahabad,2006


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On the other hand, divergent views have also been recorded which have made it doubtful

whether the NDC has fulfilled the desired purpose. Many have described it as a super

cabinet comprised of policy makers in power. It includes the heads of government of

different states and union Territories and most of the times the council has at times been

described as a mere rubber stamps on the decisions alredy taken by the center. the fact

that most of the State Governments, during the last 35 years, belonged to the same party

as ruled as the center was mainly responsible for this phenomenon. moreover, there is all

powerful headship of the prime Minister to browbeat the voice of any dissident Chief

Minister. 13 We may recall an incident of the post-1967 period when the marxist Home

Minister of the West Bengal (Jyoti Basu) tried to move this body in the direction desired

by the non-Congress chief ministers but was detested by the Congress Prime Minister.

With the turn of the single dominant party system, again under the towering leadership oflate Mrs. Indira Gandhi, the NDC was treated as hardly anything else than a bigger

platform where the State Chief Ministers assembled to put their formal seal of approval

on the lines laid down by their Prime Minister.

It can be said that the real effectiveness of the NDC is not very easy to assess, as matters

connected with it are all state secrets and not publically known. At least, it is true that the

NDC is not purely an advisory body. As matters stand, the Council is actively and

extensively associated with policy making. The council occupies an obviouslyoutstanding position in the Indian federation. Its advice naturaly recieves the highest

consideration by both Center and the States which otherwise lack any legal sanction. 14

Comparing the NDC with the Planning Commission, it has been pointed by some that the

NDC is superior to the Planning Commisiion in view of the fact that, while the latter is

just a policy-making body, the former is the decision-making authority. Brecher writes in

the biography of Pt. Nehru, "the NDC was established as a supreme administrative and

advisory body on planning..... It lays down directives invariably approved by the cabinet.Since the inception, the NDC and its Standing Committes have virtually relegated the

Planning Commission to the status of a research arm.

13 http://www.thehindu.com/news/national/ndc-scales-down-annual-growth-rate-to-8-pc/article4244847.ece?homepage=true14 R.K. Choubey, Federalism, Autonomy and Centre-state Relations , Satyam Books Publication, 2007


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The Administrative Reform Commission suggested to make the NDC a supreme political

body which give broad guidance in the often with regular sub-committees and should

both just rubber-stamp the plan formulation. the ARC also resommended the

reconstitution of the NDC and redifining of its function. The NDC should assist of the

Prime Mininster, the Deputy Prime Minister (if any), the Central Ministers of finance,

food and agriculture, industrial development and company affairs, commerce, railways,

transport and shipping, education, labor, employment and rehabilitation, home affairs and

irrigation ang power, the Chief Minister of States and the members of the Planning

Commission. The functions should be as follows:

To prescribe guidelines for the formation of the national plan

To consider the national plan as formulated by the Planning Commission.

To assess the resources required for implementing the plan and to suggest ways

and means for raising them.

To consider important questions of social and economic policy affecting

development

To review the working of the plan from time to time and to recommend such

measures as are necessary for achieving the aims and targets articulated in the

national plan.


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PROBLEM

As we know that it is a non-constitutional body. Instead of establishing it under Article

263 of the Constitution or under a parliamentary statute, it was set up a cabinet

resolution. By lacking a constitutional status, plans can be/are launched without the stampof its approval and its meetings are not held for years. For instance, the ninth plan

proposal prepared by the planning commission in 1997 was belatedly approved by the

NDC only in 1999 after a delay of two years. Since 1952, till date, it has met 54 times.

During the 37 years of congress dominance and Janata Party phase, the NDC had 40

meetings with an average of 1:1 per year. In the 16 years of multi-party

coalition/minority governments since Nov. Dec. 1989. It had fourteen meetings with an

average of 0.8 meetings per year. It may appear paradoxical that the frequency of

meetings has declined between the two phases in terms of average. One would have

expected a greater frequency during the later phase given the greater federalization of the

Indian polity as indicated by a more differentiated set of parties ruling at the union and in

the state since 1989. 15 This anomaly can however be explained by referring to two

factors. Firstly coalition and minority governments have been very unstable resulting in

delays in launching of the plans. Second, different sets of parties including in this federal

ones ruling in the states have been partners in this federal coalition governments. This has

allowed then direct access and opportunity for representation of their views in the Union

Cabinet. Therefore, they have not been very keen and insistent on the activation of the

NDC an inter governmental forum. The Sarkaria Commission Report also underlined the

importance of strengthening inter governmental forums like the NDC and ISC by giving

them constitutional status.

15 Jain M.P., Constitution of India, Eastern Publishing Company, Allahabad,2006


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Some states have often complained that they donot find adequate time for presenting their

own problems and difficulties before the NDC. They argue that regional factors in the

socio-economic development of various states and union-territories are generally under-

emphasized in the overall process of formulation of economic plans. A reason behind this

limitation is that in the Indian Planning process, uniformity and commonality, rather than

diversity and divergence, have been valued much more.

Little wonder, Sarkaria Commission opined that the NDC have not been able to act as an

effective instrument for developing consensus and commitment to the national policies.

Yet, it has been observed that the NDC has acted as a forum of informal consultation

between the central and the state governments on a number of critical and economic

issues. however, decisions containing resource allocation between the two have been

dominated by the viewpoint of the centre and, this has strained, to a certain extent, the

centre-state relations as regard planning. 17

The NDC also provides opportunities to the opposition Chief Ministers to air their

dissenting views concerning the national plan. In a meeting of the NDC held in 1969,

certain states, for the first time officially disapproved of the draft of the Fourth Plan. The

chief minister of West Bengal and Kerala observed that they had been invited to discuss

the planned draft, while there was hardly any scope for their modification. A few of the

southern states, including Tamil Nadu, had complained that although ostensibly, there

was a federal approach to a planning, regarding the allocation of financial resources,

however, the approach, paradoxically enough, had been unilateral in its operation. After

the Janata Government came into power in 1997, there was a vigorous demand from

certain Chief ministers, that there should be reprisal of the centre-state financial relations,

Jyoti Basu, the Chief Minister of West Bengal, had remarked that unless financial

position of states improved, it was not possible to achieve the target of planning. the

Chief Minister of 16 states demanded that not only there was need for a greater share for

the states in taxes and in plan assistance, there was need for market loans as well as the

institutional finances.

17 Anil Kumar Jana, Administering Dictrict Plans in India, Concept Publishing Company, New Delhi, 2004


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In October 1990, the NDC introduced a new formula for determining the central

assistance to states, replacing the old Gadgil formula. Although there were doubts

concerning the feasibility of the revised formula, the consensus among the states was

clearly in favor of increasing the central assistance in view of the enhanced

responsibilities of the States. K. Santhanam had once remarked that the NDC was like a

'super cabinet'. He made this observation in view of the NDC comprising the members of

the Union Cabinet and the Chief Ministers of the state. It was argued that the decisions of

the NDC were generally adopt without any modification by the Union and the State

governments. Ashok Chanda had also observed that the overlapping of the Planning

Commission, the NDC and the cabinet had distorted the constitutional position. 18

Moreover, certain observers feel that the NDC has been unable to go deeply into the

intricacies of the dynamics of planning and its outcomes at the cross-state levels. It has been observed that the meetings of the NDC beer an imprint of the partitionship. The

Chief Minister of states belonging to the party in power at the centre generally toe the of

the union Government don't come out forthrightly on the shortcomings of the approach to

an implementation of planning. Conversely, the Chief Ministers belonging to the

opposition parties are generally critical of the draft plan designed by the planning

commission and are generally reluctant to notice and record the positive side of the action

taken by the central government.

Another important limitation of the NDC is that it does not evaluate the implication of

five-year and annual plans on a continuing basis. One might argue that this function is

being looked after by the planning commission but it also needs to be stressed that the

task of evaluation also happens to be the first firmly defined function of the NDC.

However, since it meets only in frequently and rarely, and that too for a short period, it

has neither the time nor the infrastructure to examine the performance of the planning

system on a continual periodical basis. For this, it has to depend mainly on the data presented by the planning commission and does not have any other sources of

information on which it can base its appraisal.

18 Jain M.P., Constitution of India, Eastern Publishing Company, Allahabad,2006


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NEW ROLE

In an environment reflecting lack of consensus, sometimes the broader national goals of

socio-economic reconstruction are lost over. Hence the need remains of revolving a

'national agenda' for a holistic growth of the country, to which the NDC can contributesignificantly. In the absence of such a "national agenda", no concerted approach to

planning can take place. The Sarkaria Commission has recommended that the NDC

should be made more effective, so that it emerge as the supreme institutional, at the

political level for the Center-State planning relations. It has also recommended that NDC

should be renamed and constituted as "National economic and Development Council"

(NEDC) - under provisions of Article 263 of the constitution. The Sarkaria Commission

went on to recommend the creation of a standing committee of the NEDC, consisting of

the prime Minister, Finance Minister, Deputy Chairman of the Planning Commission,

Governor of the RBI and six Chief Ministers, one from each zone, selected by rotation of

consensus.

In case, however, the status of the NDC is transformed so as to make it a powerful and

expanded constitutional authority, it will have a telling impact on the whole politico

administrative system. Until the desirability or otherwise of such a drastic structure

redesigning is thrashed out, the need would persist of increasing the effectiveness of the

role of the NDC as well as the planning Commission.


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CONCLUSION

Overtime regrettably, the various Inter-governmental forums (like Planning Commission,

NDC, Chief Ministers Conference etc.) have degenerated into the mechanical affairs

where bored CMs listen to the long written speeches of their colleagues with nointeraction between themselves and at the end triumphantly adopt either a five year plan

or its Medium term Review. The structure of the meeting fosters any worthwhile dialogue

among the participants. 19 CMs troops out to get photographed, which are published

prominently in regional newspapers, suggesting huge achievements by the state!

Everybody goes back to sleep till the next meeting is held. Clearly, they are hardly

fulfilling their mandate "of considering issues of economic and social policies affecting

national development". India has out grow either there institutions or at least the way in

which they are run. We have repeated ad-nauseum that the next generation of reforms lie

in the domain of states. The consensus on agriculture, health, education and emerging

fiscal issues need their active consent and support on implementation. It is a time to

reinvent the NDC.

With regard to the National Development Council, state has submitted as follows:

"NDC has to be developed as an effective instrument for Centre-State coordination on all

financial and development issues. Frequent meetings of NDC are required to be held (at

least two meetings in a year) for detailed consultations with the States. It has been noticed

that at present the Members and Experts of the Planning Commission are all nominated

by the Union Government. The representation needs to be given to each State/Union

territory in the Planning Commission so that interests of all States are watched properly.

Moreover, there is no provision of Planning Commission in Constitution of India. This

provision needs to be made by way of amendment to the Constitution." 20

Planning Commission runs the NDC while the Home Ministry runs the other two. The

Prime Minister would need to synthesize their approaches to impart greater purpose and

content in the dialogue with the states. The heterogeneity of regional parties, their

19 Jain M.P., Constitution of India, Eastern Publishing Company, Allahabad,2006 20 Report of M.M.Punchhi Commission on Centre-State Relations, Volume 2, pg. 137


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ideological nuances and the coalition structure of the central governmental create fresh

challenges in forging a national approach. Only an innovative approach can promote

meaningful dialogue. The need for a new centre state compact makes this inescapable.

The centre state divide needs a revisit. Both procedures and institutions need

restructuring to meet the new developmental challenges. We do not have the luxury of

time; archaic approach and institutions are inconsistent with ambitious growth targets. A

wake up call is overdue. 21

Rekha Saxena 22 pointed out that Indias experience with its two Inter -Governmental

Agencies- National Development Council and Inter- State Council have not been as

successful as Canadas First Ministers Conference(FMC). This can be taken as an

indicator of the fact that the Indian political system in its working is less federal than the

Indian polity. Neither the National Development Council and Inter State Council can

match the FMC as an Inter Governmental Forum of federal provisional bargain and the

decision making for the last more than a decade, the Inter-State Council has been

discussing the Sarkaria Commission Recommendations adnauseam without any result by

way of implementation. The Inter- State Council is thus proving itself to be a mere

talking shop. On the other hand National Development Council by lacking a

constitutional status, plans can be/are launched without the stamp of its approval and its

meetings are not held for years.

21 http://www.thehindu.com/news/national/ndc-scales-down-annual-growth-rate-to-8-pc/article4244847.ece?homepage=true22 Rekha Saxena, The Federal Get -together Mainstream , No.8, Delhi, February, 09, 2002.


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BIBLIOGRAPHY

BOOKS

Choubey, R.K., Federalism, Autonomy and Centre-state Relations , Satyam Books

Publication, 2007

Saxena, Rekha, The Federal Get -together Mainstream , No.8, Delhi, February,

09, 2002.

Jain, M.P., Constitution of India , Eastern Publishing Company, Allahabad,2006 Report of M.M.Punchhi Commission on Centre-State Relations , Volume 2 Gupta,N.B., Raina,J.L., Jauhari,H.M., Jaurhari,B.N., Nehru and Planning in

India , Concept Publishing Co., New Delhi

Jones, Morris W.H., Government and Politics in India , London Huthinson,

London,1964

Jana, Anil Kumar, Administering Dictrict Plans in India, Concept Publishing

Company, New Delhi, 2004, pg 268

Palekar,S.A., Development Administration, PHI Learning Private Limited, New

Delhi, 2012, pg. 84

Arora,Ramesh.K., Goyal,Rajni, Indian Public Administration : Institutions and

Issues , Wishwa Prakashan, New Delhi, 2005

WEBSITE

http://shodhganga.inflibnet.ac.in/ http://interstatecouncil.nic.in/ http://www.thehindu.com/

national development council

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