Following up on his Independence Day announcement from Red Fort that the Planning Commission would "soon" be replaced by a "new institution", Modi was with Chief Ministers for nearly seven hours at his residence deliberating on what should be the future shape of the body.
Modi pushed for an effective structure, which strengthens "co-operative federalism" and the concept of 'Team India', and even cited his predecessor Manmohan Singh, saying he too had said on April 30 this year that the current structure has "no futuristic vision in the post-reform period".
Briefing the media, Jaitley later said there was a "larger consensus" that the "context" has changed and there is a "need to decentralise both power and planning".
Noting that "there cannot be a universal scheme that suits all states," he said "it is a fallacy that one size fits all in case of implementation of central schemes".
The strategy should be to empower the states to enable them to meet their own specific needs, he said.
However, there were indications that the shape of the new structure, which could also see the involvement of the private sector, may be firmed up by January 26 next year.
Congress Chief Ministers opposed disbanding of the Planning Commission and wanted a revamp of the existing body.
Congress Deputy Leader in Rajya Sabha Anand Sharma told reporters that dismantling the Planning Commission would be "unwarranted, shortsighted and dangerous" as it will have long-term adverse effect on Centre-state relations.
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