M A I N   N E W S

No consensus on Article 356
Tribune News Service and PTI

NEW DELHI, April 4 — The standing committee of the Inter-State Council today once again failed to arrive at a consensus on Article 356 of the Constitution enabling imposition of President’s rule in states and decided to refer the matter for examination by a sub-committee headed by Defence Minister George Fernandes.

The sub-committee will also examine the recommendations of the Sarkaria Commission on Centre relations in this regard, an official spokesman said after the meeting.

The sub-committee was set up in 1998 to examine amendments in Article 356. Different views were expressed at the meeting on applications of sanction under Article 365 in the event of non-compliance of directions of the Centre at the today’s meeting which was held under the chairmanship of Union Home Minister L.K. Advani.

Mr Advani announced that the meeting of the Inter-State Council would be held here on May 20, at the end of the budget session of Parliament.

The recommendations of the Sarkaria Commission on administrative relations related to the powers of the union to give direction to the state governments under Articles 256 and 257 of the Constitution and applications of sanction under Article 365 came up for discussion and it was that the sub-committee would examine these too.

Regarding reservation of Bills, a consensus was reached that when a Bill passed by the State Legislature is referred to the Governor for his assent, the Governor should act on it within one month.

In case the Bill is reserved for consideration of the President, the same should be disposed of within a period of four months, a Home Ministry spokesman said after the meeting.

The committee felt that reasons for reserving any Bill for consideration of the President should be communicated to the state government.

Regarding Centre-State financial relations, Finance Minister Yashwant Sinha, mentioned that the Constitution amendment Bill to implement the alternative scheme of devolution of share in central taxes would be passed in the current session of Parliament. The scheme envisages revision in the rate of royalty, transfer of central-sponsored schemes along with funds to the states, issuance of tax-free municipal bonds by the states, overdraft facilities and raising of small term loans.

As regards industries, it was noted that the consensus formulated based on the Sarkaria Commission recommendations had largely been implemented under the new thrust of delicensing and liberalised industrial policy of the government. Apart from the Home Minister, the Ministers of Finance Defence, Commerce and Industry and Chemicals and Fertilisers and the Chief Ministers of Andhra Pradesh, Karnataka, Madhya Pradesh and Punjab attended the meeting.