SECOND ADMINISTRATIVE REFORMS COMMISSION

1 GOVERNMENT OF INDIASECOND ADMINISTRATIVE REFORMS COMMISSIONFIFTEENTH REPORTSTATE AND DISTRICT ADMINISTRATION APRIL 2009iGovernment of IndiaMinistry of Personnel, Public Grievances & PensionsDepartment of ADMINISTRATIVE REFORMS and Public GrievancesResolutionNew Delhi, the 31st August, 2005No. 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 The COMMISSION will consist of the following : (i) Shri Veerappa Moily - Chairperson (ii) Shri V.

2 Ramachandran - Member (iii) Dr. Mukherjee - Member (iv) Dr. Kalro - Member (v) Dr. Jayaprakash Narayan - Member (vi) Smt. Vineeta Rai - Member-Secretary3. The COMMISSION will suggest measures to achieve a proactive, responsive, accountable, sustainable and efficient administration for the country at all levels of 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)

3 Issues of Federal Polity(xii) Crisis Management(xiii) Public OrderSome of the issues to be examined under each head are given in the Terms of Reference attached iiiiias a Schedule to this 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 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 recommending re-organisation of the machinery of the Government or of any of its service The COMMISSION will give due consideration to the need for consultation with the State The COMMISSION will devise its own procedures (including for consultations with the State Government as may be considered appropriate by the COMMISSION )

4 , and may appoint 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 rather than attempting to address all the issues ab The Ministries and Departments of the Government of India will furnish such information and documents and provide other assistance as may be required by the COMMISSION . The Government of India trusts that the State Governments and all others concerned will extend their fullest cooperation and assistance to the The COMMISSION will furnish its report(s) to the Ministry of Personnel, Public Grievances & Pensions, Government of India, within one year of its ( Suvrathan)Additional Secretary to Government of IndiaORGANISATIONS econd ADMINISTRATIVE REFORMS COMMISSION 1.

5 Dr. Moily, Chairman* 2. Shri V. Ramachandran, Member** 3. Dr. Mukherjee, Member 4. Dr. Kalro, Member 5. Dr. Jayaprakash Narayan, Member** 6. Smt. Vineeta Rai, Member-SecretaryOfficers of the COMMISSION 1. Shri Anil Bhushan Prasad, Additional Secretary 2. Shri Kharola, Joint Secretary# 3. Shri Singh, PS to Chairman# 4. Shri Sanjeev Kumar, Director 5. Shri Shahi Sanjay Kumar, Deputy Secretary*Dr. M. Veerappa Moily Chairman, resigned with effect from 1st April, 2009 (Resolution , dated 1st April, 2009)**Shri V.

6 Ramachandran, was appointed Acting Chairman vide Resolution No. K-11022/26/2007-AR, dated 27th April, 2009**Dr. Jayaprakash Narayan Member, resigned with effect from 1st September, 2007 (Resolution , dated 17th August, 2007)# Till 1 Introduction 1 Chapter 2 State Administration 5 Introduction 5 Relevant Recommendations of the COMMISSION in its Earlier Reports 6 Restructuring State Governments 21 Refurbishing State Civil Services 35 State Public Service COMMISSION 52 Chapter 3 District Administration 59 Introduction 59 The Institution of District Collector / Deputy Commissioner 60 Functional and Structural REFORMS 86 Chapter 4 Administration of the Union Territories 93 Evolution of States and

7 Union Territories 93 The National Capital Territory of Delhi 98 Chandigarh 140 Puducherry 145 Andaman and Nicobar Islands 151 Lakshadweep 160 Daman and Diu and Dadra & Nagar Haveli 164 Chapter 5 Governance Issues in the North-Eastern States 171 Introduction 171 Natural Resources and Constraints 177 Ethnic Conflicts in Places, Manifesting as Territorial 180 Conflict and Violance (Problem of Insurgency and Law and Order) Provisions of the Sixth Schedule of the Constitution 184 with respect to Assam, Meghalaya, Tripura and Mizoram vivii Adhoc Transfer of Subjects/Activities 188 to the Autonomous Councils Predominance of non-elected Customary Heads/Bodies 190 at the Village Level.

8 Issue of Village Self Governance in the Sixth Schedule Areas Absence of linkage between the Sixth Schedule and 192 the 73rd Amendment Special powers of the Governors of Assam, Meghalaya, 193 Tripura and Mizoram with Respect to Schedule Sixth Areas Special provisions in the Constitution under 207 Articles 371A, 371B, 371C, 371F, 371G & 371H applicable to North-Eastern States Special Autonomous Councils created by State Enactments 209 (in Assam and Manipur) Issues of Tribal Areas lying outside the Sixth Schedule 209 Personnel Management and Capacity Building of 211 Administration Issues of Recruitment in the Sixth Schedule Areas 215 Regional Institutes 216 State Specific Issues 218 Assam 219 Arunachal Pradesh 232 Manipur 235 Meghalaya 244 Mizoram 252 Nagaland 258 Sikkim 264 Tripura 266 Chapter 6 Managing State Finances 272 Conclusion 283 Summary of Recommendations 284 LIST OF TABLEST able No.

9 Strength of the Legislative Assembly of various States Composition of the Public Service Commissions Functions of the District Collector/Deputy Commissioner Function of the Revenue Department in Andhra Pradesh State set-up at the Commencement of the Constitution Statistical Details regarding the Union Territories Statistical Details regarding the Union Territories Recommendations of Various Committees on Governing Issues 107 of the NCT of Delhi Terms and Mode of Election of Mayors in Various States Suggestion of the Balakrishnan Committee Suggestion of the Virendra Prakash Committee Proposal of Delhi Government Regarding 117 Splitting up of the MCD Demand No.

10 55 Demand for Grants-Budget 2008-09 NCR Limits Composition of the NCR Planning Board Proposed Financial Delegation in respect of Chandigarh Proposed Financial Delegation in respect of 149 Puducherry Proposed Financial Delegation in Respect of Andaman and 158 Nicobar Proposed Financial Delegation in Respect of 163 Lakshadweep Proposed Financial Delegation in Respect of Daman & Diu 168 and Dadra & Nagar Haveli NER States: Various Development Indicators Special Powers of Governors in Respect of Sixth Schedule Areas Additional Powers to the Governors of Assam, Tripura 196 and Applicability of Union and State Laws to Tribal Areas of Assam, 20