Former Prime Minister of India - Shri Atal Bihari Vajpayee

PM's inaugural address at the Eighth meeting of Inter-State Council

~I welcome you to the Eighth meeting of the Inter-State Council.

All the previous meetings of the Inter-State Council have been held in Delhi. The distinction of hosting it outside the national capital for the first time goes to Jammu & Kashmir. On behalf of all the other States, and on my own behalf, I offer my hearty thanks to the people of Jammu & Kashmir, and to Mufti Sahab, for making it possible.

A meeting of the country’s apex forum of cooperative federalism taking place in Srinagar gives yet another clear message that the situation in this State is changing. It also demonstrates the firm commitment of the Centre and all other States to stand by our brethren in Jammu & Kashmir and Ladakh areas of the State.

The people of Jammu & Kashmir deserve our highest appreciation for showing their faith in democracy in the face of grave threats. The elections to the State Legislature in October last will go down as one of the finest victories for the ballot, in its battle against the bullet, in world history. Above everything else, it was a mandate for peace. It was a mandate against cross-border terrorism, which the people of this State have suffered for over a decade and paid a heavy price.

How heartening it is to know that the shikaras are once again sailing with tourists on the famous Dal Lake in front of this convention centre. How reassuring it is to know that the hope of normalcy is returning to the Kashmir Valley.

I assure the people and the government of Jammu & Kashmir that we will give them maximum help in consolidating the recent gains. We will further intensify our sincere efforts to advance the dialogue process. Our doors are open to all those who reject militancy and extreme positions and wish to play a constructive role in taking Jammu & Kashmir forward on the high road of peace and rapid development.

Over the last few years, we have sought to make the Inter-State Council an active forum for free and frank discussions on issues that have a bearing on the Centre-State and Inter-State relations. Such frequent interaction nurtures a strong, federal spirit. It also protects the powers of the States without sacrificing national unity, integrity and Constitutional imperatives. The Council strengthens the bond of partnership between the Union and the States, which is the mainstay of our democratic polity and also the main requirement for achieving India’s speedy, all-round development.

Since its inception in 1990, the Inter-State Council has concentrated on the recommendations of the Sarkaria Commission, which submitted its report in 1988. Previous meetings of the Council have covered a lot of ground in deliberating these recommendations and arriving at consensus decisions. Now, 17 recommendations from different Chapters of the Commission’s Report are for consideration before us. The Standing Committee has already considered these recommendations and its opinion has been incorporated in the agenda papers.

Without going into the specifics of the Commission’s recommendations, or what the Standing Committee has opined on them, I would like to urge all of you that, after 13 long years, let us bring the discussion on Sarkaria Commission’s recommendations to a final and consensual conclusion at the Srinagar meeting.

All of you will perhaps agree with me that the dynamics of social, economic and political forces in India has changed significantly since the Sarkaria Commission submitted its report. Centre-State relations have improved and a sense of partnership has emerged. The end of one-party rule at the Centre has inaugurated a new process of harmonisation of regional aspirations within an overarching national outlook. This has also helped political parties to somewhat alter their traditional positions on various issues.

Today all of us are united in our belief that we need to continually strengthen the consensus and cooperation between States and the Centre. The dream of a strong, prosperous, progressive and self-confident India – a dream which we have now begun to articulate as ~Making India a Developed Nation by 2020~ – can only be realised through a partnership between a strong Centre and strong States. In this vision of the founding fathers of our Constitution, the Centre is expected to provide the overall guidance to the nation and the State Governments are expected to provide a good administrative interface with the people.

Today’s agenda also includes consideration of the views of a Sub-Committee, which was set up by the Inter-State Council to examine issues on contract labour and contract appointments. The Union Ministry of Labour is taking appropriate action in the matter.

Tomorrow in the morning session, if time permits, we could discuss an ‘Action Plan on Good Governance’. The Union Government had set up a Group of Ministers to suggest reforms in the national security system. One of the recommendations made by this Group was to discuss an Action Plan for Good Governance in the forum of the Inter-State Council for adoption and implementation.

On account of the reform programmes of the Central and State Governments, the role of the Government has been changing from that of a controller and executor of socio-economic activities to that of a facilitator, motivator and guide. Our main emphasis now is to unleash the potential of private enterprise and to encourage the constructive participation of the institution of civil society.

The essential elements of ‘Good Governance’ are-

• a comprehensive legal framework,

• defended and enforced by an impartial and competent judicial system,

• an accountable, open and transparent executive decision-making apparatus,

• coupled with a capable, efficient and people-friendly bureaucracy,

• and, last but not the least, strong civil society participation.

One of the shortcomings in our government system is that the evaluation of our policies and programmes is often expenditure based and not sufficiently based on quantitative and qualitative outputs. This must change. All of us now realise that the people are demanding a higher level of performance by the governments they elect. Therefore, I would like the Inter-State Council Secretariat to focus on monitoring the implementation of the Action Plan on Good Governance both in quantitative and qualitative aspects.

At the last meeting of the Council, we had taken decision on 59 recommendations of Sarkaria Commission on Centre-State relations. I am happy to inform you that in pursuance of one of such decisions, instructions have been issued to the Union Ministries/Departments requesting them to consult the State Governments, excepting emergency cases, on any legislation with regard to matters enumerated in the Concurrent List of Seventh Schedule of the Constitution. It also provides that machinery of Inter-State Council Secretariat should be used for effective consultations with the States.

I urge the Union Ministries/Departments as well as the State Governments to ensure adherence with these instructions. I may remind you that the National Commission to Review the Working of the Constitution had also expressed serious concern about lack of Centre- State consultations in the area of legislation under the Concurrent List in spite of the existence of the Inter-State Council.

Another decision taken in the last meeting of the Council was to effect early revision of royalty rates on coal. These rates have been revised on 16^th August, 2002 as a result of which the royalty earnings of coal producing States are likely to go up by about Rs. 500 crore per annum. This is likely to go up further with increase in the coal production in coming years.

In recent meetings of the Council, I have been urging the members of the Council to increasingly utilise this forum by bringing up new issues for discussion and resolution. I would again call upon the Chief Ministers and the Union Ministers to place fresh issues and ideas for deliberations in this forum. In this direction, the task and reach of the Council needs to be widened with provision of adequate manpower and funds at its disposal.

The prepared speeches of Chief Ministers have already been circulated and would go on record. If you agree, we can straightaway commence discussion on today’s agenda, for which I declare the meet open.

Thank You~.