The North Eastern Council was constituted for performing the following functions :-
*To discuss any matter in which some or all of the States represented in the Council have common interest and advise the Central Government and the Governments of the States concerned as to the action to be taken on any such matter, particularly with regard to
(i) any matter of common interest in the field of economic and social planning;
(ii) any matter concerning inter-State Transport and Communications;
(iii) any matter relating to Power or Flood-control projects of common interest.
*To formulate and forward proposals for securing the balanced development of the North Eastern Areas particularly with regard to
(i) a unified and coordinated Regional Plan, which will be in addition to the State Plan, in regard to matters of common importance to that area;
(ii) prioritizing the projects and schemes included in the Regional Plan and recommend stages in which the Regional Plan may be implemented; and
(iii) regarding location of the projects and schemes included in the Regional Plan to the Central Government for its consideration.
Where a project or a scheme is intended to benefit two or more States, to recommend the manner in which such project or scheme may be executed/implemented and managed, the benefits therefrom may be shared, and the expenditure thereon may be incurred.
*To review, from time to time, the implementation of the projects and schemes included in the Regional Plan and recommend measures for effecting coordination among the Governments of the concerned States in the matter of implementations.
*To review progress of expenditure and recommend to the Central Government the quantum of financial assistance to be given to the States entrusted with implementation of any project included in the Regional Plan.
*To recommend to the Governments of the States concerned or to the Central Government the undertaking of necessary Surveys and Investigations of projects to facilitate inclusion of new projects in the Regional Plan for consideration.
*To review, from time to time, the measures taken by the States represented in the Council for the maintenance of security and public order and recommend to the concerned State Governments further measures necessary in this regard.