Apart from the issues where States are asking for more autonomy from the Centre, there are also instances when there is a dispute between two States or among more than two States. 

Border Dispute

• States have certain claims over territories belonging to neighbouring States
• Though language is the basis of defining boundaries of the States, border areas mostly have populations with more languages. So, based on the linguistic majority, it is not easy to resolve this dispute
• Some longstanding border disputes:
  1. Belgaum dispute between Maharashtra and Karnataka
  2. Manipur and Nagaland also have a long-standing border dispute
  3. Dispute on Chandigarh City between Haryana and Punjab: In 1985, the then Prime Minister Rajiv Gandhi reached an understanding with the leadership of Punjab in which Chandigarh was to be handed over to Punjab. But this has not happened yet

Water Dispute 

• Disputes over river waters test the patience and cooperative spirit of the States as rivers are a major resource
• Cauvery water dispute: Between Tamil Nadu and Karnataka this is a crucial issue
• Narmada water dispute: It is among Gujarat, Madhya Pradesh, and Maharashtra

Extraordinary features of a federal government

One of the most extraordinary features of the federal arrangement created in India is that many States get a differential treatment. Under the Constitution of India, some States have special provisions because of their peculiar social and historical circumstances.

Special Provisions:

• Though the Constitution provides a division of powers that is common to all the States, it has some special provisions for some States given their peculiar social and historical circumstances
• Most of the special provisions in northeastern states (Assam, Nagaland, Mizoram, etc.) are largely due to their sizable indigenous tribal population with a distinct history and culture
• For uneven States like Himachal Pradesh and some different States like Andhra Pradesh, Goa, Gujarat, Maharashtra, Sikkim, and Telangana, extraordinary provisions exist

Jammu and Kashmir:  It had a special status under Article 370 of the Indian Constitution.

History of Jammu and Kashmir:

• It was one of the large princely States which had the option of joining India or Pakistan or staying autonomous
• In October 1947, Pakistan sent ancestral infiltrators from its side to capture Kashmir which constrained the Maharaja Hari Singh to request Indian assistance and consented to the Indian Union

Given greater autonomy: 

J&K was an exception as most Muslim majority areas in the Western and Eastern parts joined Pakistan. 

• According to Article 370, the central government had only limited powers and other powers listed in the Union List and the Concurrent list could be used only with the consent of the State
• Earlier, there was a constitutional provision that allowed the President, with the concurrence of the State government, to specify which parts of the Union list should apply to the State
• With the agreement of the government of J&K, the President had issued two Constitutional orders making large parts of the Constitutapplylies to the State. As a result, though J&K had a separate Constitution and a flag, the Parliament’s power to make laws on subjects in the Union List was fully accepted
• Further dissimilarities between the other States and the State of J&K:
  1. No emergency due to internal disturbances could be declared in J&K without the concurrence of the State
  2. The Union government could not impose a financial emergency in the State and the Directive Principles did not apply in J&K
  3. Amendments to the Indian Constitution (under Article 368) could apply in concurrence with the government of J&K

At present, the special status given under Article 370 no longer exists. 

• The state has been divided into two Union territories by the Jammu and Kashmir Reorganisation Act 2019, viz., (i) Jammu and Kashmir, and (ii) Ladakh
• The amendment has come into effect from 31 October 2019

Water Dispute Water Tribunals

Inter-State River Water Disputes (ISRWD) Act, 1956 is enacted to adjudicate disputes relating to  inter-State rivers and river valley’s water. When a request under this Act is made by a State Government on any water dispute, and the Central Government deems it fit that the dispute cannot be settled by negotiations, a Water Disputes Tribunal is constituted for the adjudication. At present, five Water Disputes Tribunals are active, which are:

• Ravi & Beas Water Tribunal
• Krishna Water Disputes Tribunal -II
• Vansadhara Water Disputes Tribunal
• Mahadayi Water Disputes Tribunal, and 
• Mahanadi Water Disputes Tribunal

Conclusion

A responsive and sensitive government towards diverse needs and demands for autonomy of States can alone be the basis of a cooperative federation.