Understanding Federalism

Wikipedia
says it is is a political concept in which a group of members are bound together (Latin: foedus, covenant) with a governing representative head. The term federalism is also used to describe a system of the government in which sovereignty is constitutionally divided between a central governing authority and constituent political units (like states or provinces). Federalism is a system in which the power to govern is shared between national and central (state) governments, creating what is often called a federation. Proponents are often called federalists.

Federalism is the type of politics wherein a group of members create a sovereign constitution with central governing authority and political units.

Wiki uses the example of India as a unique form of Federalism... 28 states and 7 Union territories, but with exceptions based on caste and/or class of individuals or ethnic minorities.  Does this give rise to uncontrollable separatist movements? i.e too much freedom = no enough central control?  

US is given as another example where parts came together to create a functional whole.  Though, the debate continues to rage about state vs. central government control of things like speed limits and health care.

I'm curious about Nepal's process and their vision of the term.