The Cabinet Mission Plan : In the absence of any agreed solution, the Cabinet Mission announced its own recommendations on 16 May, 1946. These recommendation are known as the Cabinet Mission Plan which included : A Union of India, embracing both British India and the Princely States, would deal with three subjects namely, defence, foreign affairs and communication and would have the powers necessary to raise the finance required for the above subjects. 

All subjects other than the union subjects and all residuary powers would rest with the provinces of British India. 

The Princely States would also retain all subjects other than those ceded to the Union. 

Provinces would be free to form groups and each group would be free to decide the provincial subjects to be held in common. 

The three groups proposed were : 

• Madras, Bombay, United Provinces, Bihar, Central Province and Orissa. 

• Punjab, North-West Frontier Province and Sindh. 

• Bengal and Assam. 

A province could opt out of the group if the majority of the members of its legislature so decided. 

The new constitution was also to contain a provision that any province might call for the amendment or reconsideration of the Constitution after the initial period of ten years and a ten year interval thereafter. 

It provided for Constituent Assembly to draw up the future constitution of the country. The Constituent Assembly was to consist of 389 members, 292 from British India and 93 from Princely States and 4 members represented the Chief Commissioners’ Provinces. 

To carry on the country’s administration while the Constitution making was proceeding, an interim Government having the support of the major political parties would be set up.