The president is empowered to establish an Inter-state Council, if at any time if appears to him that public interest would be served by it Art. 263. The functions envisaged by the constitution for such a council are: to inquire into and advise upon disputes which may have arisen between states, investigate and discuss subjects of common interest between the union and states or between two or more states.

The president’s power to establish an Inter-state Council can be used both for advising upon disputes as well as to investigate and discuss subjects of common interest. In exercise of this power, The Central Council for health, The Central Council of Indian Medicine, The Central Council of Homeopathy, The Central Council of Local self-Government have already been constituted by president.

On the basis of Sarkaria Commission’s recommendations, a permanent Inter-state Council has been created in April, 1990, consisting of 6 Union Cabinet Ministers and the Chief Ministers of the states. The functions of this council are to inquire into and advice upon disputes which may have arisen between states, investigate and discuss subjects of common interest between the union and states or between two or more states. The prime minister is the president of this council. The first meeting of this council was in October, 1990. In its 8th meeting in 2003, the imposition of president’s rule (Art. 356) have been largely discussed.