Article 263 of the Constitution of India( [size:1.44MB] ) provides for the establishment of an Inter-State Council. The text of the Article reads as under:  

"263. Provisions with respect to an inter-State Council If at any time it appears to the President that the public interests would be served by the establishment of a Council charged with the duty of –  

  1. (a) inquiring into and advising upon disputes which may have arisen between States;
  2. (b) investigating and discussing subjects in which some or all of the States, or the Union and one or more of the States, have a common interest; or
  3. (c) making recommendations upon any such subject and, in particular, recommendations for the better co-ordination of policy and action with respect to that subject,

it shall be lawful for the President by order to establish such a Council, and to define the nature of the duties to be performed by it and its organization and procedure.”

The Commission on Centre-State Relations under the Chairmanship of Justice R. S. Sarkaria in its report in January 1988 recommended that:

  1. “(a) A permanent Inter-State Council called the Inter-Governmental Council (IGC) should be set up under Article 263.
  2. (b) The IGC should be charged with the duties set out in clauses (b) and (c) of Article 263, other than socio-economic planning and development.” (para 9.10.01 of the Report)

Government of India accepted the recommendation of the Sarkaria Commission to set-up an Inter-State Council and notified the establishment of the Inter-State Council vide Presidential Order dated 28.05.1990.( [size:1MB] )