The party said the steps to dismantle the plan panel was "unwarranted, shortsighted and dangerous" even as it cautioned the government against "diluting" the Commission's functions.
"Congress party opposes and condemns the efforts being made by the BJP government in a devious manner characterised by typical subterfuge and doublespeak to dismantle the Planning Commission," AICC Communication Department Chairman Ajay Maken said in a statement.
"Any move to rename or restructure is unwarranted in the national interest and must be opposed... It (Congress) cautions the government against diluting the Commission's functions that ensure that socio-economic justice and robust federalism, in the name of reforms aimed at benefiting vested interests and corrupt practices in project implementation," he said.
Senior party leader Anand Sharma said the move has "undermined the federal structure" of the country.
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"There may have been shortcomings in the Planning Commission but it also has inherent strains. What the Planning Commission needs is reorientation and not renaming or a political burial," Sharma said.
"Instead of apologising for the undemocratic and the arbitrary action of the Prime Minister in not consulting the states, or the Chief Ministers, it is astonishing that the Finance Minister is claiming that something great is being achieved.
"It is not constructive federalism but insulting the federal spirit of the Constitution. It reconfirms that the Prime Minister not only lacks vision but it is a master of repackaging and renaming," Sharma said.