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GOVERNMENT OF INDIA SECOND ADMINISTRATIVE REFORMS COMMISSION FIFTEENTH REPORT STATE AND DISTRICT ADMINISTRATION APRIL 2009 Government of India Ministry of Personnel, Public Grievances & Pensions Department of Administrative Reforms and Public Grievances Resolution New Delhi, the 31st August, 2005 No. K-11022/9/2004-RC. — The President is pleased to set up a Commission of Inquiry to be called the Second Administrative Reforms Commission (ARC) to prepare a detailed blueprint for revamping the public administration system. 2. The Commission will consist of the following : (i) Shri Veerappa Moily - Chairperson (ii) Shri V. Ramachandran - Member (iii) Dr. A.P. Mukherjee - Member (iv) Dr. A.H. Kalro - Member (v) Dr. Jayaprakash Narayan - Member (vi) Smt. Vineeta Rai - Member-Secretary 3. The Commission will suggest measures to achieve a proactive, responsive, accountable, sustainable and efficient administration for the country at all levels of the government. The Commission will, inter alia, consider the following : (i) Organisational structure of the Government of India (ii) Ethics in governance (iii) Refurbishing of Personnel Administration (iv) Strengthening of Financial Management Systems (v) Steps to ensure effective administration at the State level (vi) Steps to ensure effective District Administration (vii) Local Self-Government/Panchayati Raj Institutions (viii) Social Capital, Trust and Participative public service delivery (ix) Citizen-centric administration (x) Promoting e-governance (xi) Issues of Federal Polity (xii) Crisis Management (xiii) Public Order Some of the issues to be examined under each head are given in the Terms of Reference attached i as a Schedule to this Resolution. Organisation 4. The Commission may exclude from its purview the detailed examination of administration of Defence, Railways, External Affairs, Security and Intelligence, as also subjects such as Second Administrative Reforms Commission Centre-State relations, judicial reforms etc. which are already being examined by other bodies. The Commission will, however, be free to take the problems of these sectors into account in 1. Dr. M.Veerappa Moily, Chairman* recommending re-organisation of the machinery of the Government or of any of its service 2. Shri V. Ramachandran, Member** agencies. 3. Dr. A.P. Mukherjee, Member 4. Dr. A.H. Kalro, Member 5. The Commission will give due consideration to the need for consultation with the State 5. Dr. Jayaprakash Narayan, Member*** Governments. 6. Smt. Vineeta Rai, Member-Secretary 6. The Commission will devise its own procedures (including for consultations with the State Government as may be considered appropriate by the Commission), and may appoint Officers of the Commission committees, consultants/advisers to assist it. The Commission may take into account the existing material and reports available on the subject and consider building upon the same 1. Shri Anil Bhushan Prasad, Additional Secretary rather than attempting to address all the issues ab initio. 2. Shri P.S. Kharola, Joint Secretary# 3. Shri R.K. Singh, PS to Chairman# 7. The Ministries and Departments of the Government of India will furnish such information 4. Shri Sanjeev Kumar, Director and documents and provide other assistance as may be required by the Commission. The 5. Shri Shahi Sanjay Kumar, Deputy Secretary Government of India trusts that the State Governments and all others concerned will extend their fullest cooperation and assistance to the Commission. *Dr. M. Veerappa Moily – Chairman, resigned with effect from 1st April, 2009 (Resolution No.K-11022/26/2007-AR, dated 1st April, 2009) 8. The Commission will furnish its report(s) to the Ministry of Personnel, Public Grievances **Shri V. Ramachandran, was appointed Acting Chairman vide Resolution & Pensions, Government of India, within one year of its constitution. No. K-11022/26/2007-AR, dated 27th April, 2009 ***Dr. Jayaprakash Narayan – Member, resigned with effect from 1st September, 2007 (Resolution No.K- 11022/26/2007-AR, dated 17th August, 2007) Sd/- (P.I. Suvrathan) # Till 31.03.2009 Additional Secretary to Government of India ii iii CONTENTS Chapter 1 Introduction 1 Chapter 2 State Administration 5 2.1 Introduction 5 2.2 Relevant Recommendations of the Commission in its Earlier Reports 6 2.3 Restructuring State Governments 21 2.4 Refurbishing State Civil Services 35 2.5 State Public Service Commission 52 Chapter 3 District Administration 59 3.1 Introduction 59 3.2 The Institution of District Collector / Deputy Commissioner 60 3.3 Functional and Structural Reforms 86 Chapter 4 Administration of the Union Territories 93 4.1 Evolution of States and Union Territories 93 4.2 The National Capital Territory of Delhi 98 4.3 Chandigarh 140 4.4 Puducherry 145 4.5 Andaman and Nicobar Islands 151 4.6 Lakshadweep 160 4.7 Daman and Diu and Dadra & Nagar Haveli 164 Chapter 5 Governance Issues in the North-Eastern States 171 5.1 Introduction 171 5.2 Natural Resources and Constraints 177 5.3 Ethnic Conflicts in Places, Manifesting as Territorial 180 Conflict and Violance (Problem of Insurgency and Law and Order) 5.4 Provisions of the Sixth Schedule of the Constitution 184 with respect to Assam, Meghalaya, Tripura and Mizoram iv v 5.5 Adhoc Transfer of Subjects/Activities 188 Chapter 6 Managing State Finances 272 to the Autonomous Councils Conclusion 283 5.6 Predominance of non-elected Customary Heads/Bodies 190 at the Village Level; Issue of Village Self Governance in Summary of Recommendations 284 the Sixth Schedule Areas 5.7 Absence of linkage between the Sixth Schedule and 192 LIST OF TABLES the 73rd Amendment 5.8 Special powers of the Governors of Assam, Meghalaya, 193 Table No. Title Tripura and Mizoram with Respect to 2.1 Strength of the Legislative Assembly of various States 23 Schedule Sixth Areas 2.2 Composition of the Public Service Commissions 56 5.9 Special provisions in the Constitution under 207 Articles 371A, 371B, 371C, 371F, 371G & 371H 3.1 Functions of the District Collector/Deputy Commissioner 65 applicable to North-Eastern States 3.2 Function of the Revenue Department in Andhra Pradesh 73 5.10 Special Autonomous Councils created by State Enactments 209 4.1 State set-up at the Commencement of the Constitution 93 (in Assam and Manipur) 4.2 Statistical Details regarding the Union Territories 96 5.11 Issues of Tribal Areas lying outside the Sixth Schedule 209 5.12 Personnel Management and Capacity Building of 211 4.3 Statistical Details regarding the Union Territories 96 Administration 4.4 Recommendations of Various Committees on Governing Issues 107 5.13 Issues of Recruitment in the Sixth Schedule Areas 215 of the NCT of Delhi 5.14 Regional Institutes 216 4.5 Terms and Mode of Election of Mayors in Various States 112 5.15 State Specific Issues 218 4.6 Suggestion of the Balakrishnan Committee 115 5.15.1 Assam 219 4.7 Suggestion of the Virendra Prakash Committee 116 5.15.2 Arunachal Pradesh 232 4.8 Proposal of Delhi Government Regarding 117 5.15.3 Manipur 235 Splitting up of the MCD 5.15.4 Meghalaya 244 4.9 Demand No. 55 – Demand for Grants-Budget 2008-09 134 5.15.5 Mizoram 252 4.10 NCR Limits 136 5.15.6 Nagaland 258 4.11 Composition of the NCR Planning Board 136 5.15.7 Sikkim 264 4.12 Proposed Financial Delegation in respect of Chandigarh 143 5.15.8 Tripura 266 4.13 Proposed Financial Delegation in respect of 149 Puducherry Administration vi vii 4.14 Proposed Financial Delegation in Respect of Andaman and 158 5.18 Cadre strength of the All India Services in Sikkim 265 Nicobar Administration 5.19 Structure of TTADC 268 4.15 Proposed Financial Delegation in Respect of 163 6.1 Share of States in Combined Revenue Receipts and Expenditures 272 Lakshadweep Administration 4.16 Proposed Financial Delegation in Respect of Daman & Diu 168 LIST OF FIGURES and Dadra & Nagar Haveli Administration Figure No. Title 5.1 NER States: Various Development Indicators 175 5.1 Map of North-Eastern States 172 5.2 Special Powers of Governors in Respect of Sixth Schedule Areas 193 5.3 Additional Powers to the Governors of Assam, Tripura 196 LIST OF BOXES and Mizoram Box No. Title 5.4 Applicability of Union and State Laws to Tribal Areas of Assam, 200 Meghalaya and Mizoram 3.1 Role of District Collector in Health Sector 68 5.5 Representation of ST Candidates from North-Eastern Region 214 3.2 SCORE – eRegistration in Bihar (A case study of Muzaffarpur 84 in All India Services Registry office) 5.6 Percentage Share of ST Candidates from 214 3.3 Improved Health and Sanitation Practices, District Surguja, 85 the North-Eastern Region in Overall appointment Chhattisgarh from ST Category 4.1 Present composition of the DDA 126 5.7 Basic facts relating to Sixth Schedule Councils in Assam 220 4.2 Raising of Dhanikhari Dam : Case Study of a Drinking Water 158 5.8 Brief accounts of KAAC and NHAC 221 Supply Scheme 5.9 Powers and functions of KAAC and NHAC 221 5.1 Socio-economic and Cultural Features of the 176 5.10 Summary Information of Tribe Specific Autonomous Councils 229 North-Eastern Region in Assam 5.2 Purpose of Vision Statement – 2020 for the NER 179 5.11 Hill District Councils of Manipur 237 5.3 An Illustrative list of Regional Institutions in 217 5.12 Statistics related to the Autonomous Councils of Meghalaya 245 the North-Eastern Region 5.13 Brief account of the Autonomous Councils of Meghalaya 246 5.4 Naga and Kuki traditional system in Manipur 239 5.14 Powers and Functions of the Autonomous Councils of Meghalaya 247 5.5 Communitization of Primary Education; 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