Urban Local Government: Municipalities and Constitutionalisation

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Urban Local Government is Constitutionalized by74th Constitutional Amendment Act 1992

Urban Local Government is dealt by three Ministries at Centre level

  • Ministry of Urban Development
  • Ministry of Defense
  • Ministry of Home Affairs

Eight Types of Urban Local Government

1) Municipal Corporation

2) Municipality

3) Notified Area Committee

4) Town Area Committee

5) Cantonment Board

6) Township

7) Port trust

8) Special Purpose Agency


  • Rajiv Gandhi Government was to introduced the bill in Lok Sabha in 1989: Bill Lapsed
  • National Front Government introduced Revised Nagarpalika Bill in Lok Sabha in 1990: Bill Lapsed
  • P V Narasimha Rao՚s Government introduced the modified bill in the Lok Sabha in 1991: Bill was passed and emerged as 74th Constitutional Amendment Act

74th Amendment Act

  • Added new Part IX-A to the constitution
  • Consists Article 243-P to 243-ZG
  • Added 12th Schedule which contains Eighteen Subjects like Town Planning , Construction of Buildings, Water Supply , Public Health , Urban Forestry , Slum improvement, etc.
  • This Act Constitutionalized Municipalities
  • This Act aims to strengthen Urban Government

Salient Features of the Act

  • Three Types of Municipalities
  • Composition
  • Ward Committees
  • Reservation of Seats
  • Duration of Municipalities
  • State Election Commission

Types of Urban Government

Municipal Corporation

  • They are created by States for the administration of metropolitan cities having population more than 1 Million/10,00, 000
  • It has three authorities: the Council, the Standing Committee and the Commissioner
  • The Council is Legislative Wing of the Corporation and headed by a Mayor
  • The Standing Committee facilitate working of the Council
  • The Municipal Commissioner is the Chief Executive Authority of the Corporation


  • They are established by the State for the administration of Towns and Smaller Cities having population 1,00, 000 to 10,00, 000
  • They have three authorities: the Council , the Standing Committee and the Chief Executive officer
  • The Council is headed by President or Chairman
  • The Standing Committee facilitate working of the council
  • The Chief Executive Officer is appointed by the State Government

Notified Area Committee

  • Created for the Administration of two types of areas - fast developing area and are which is yet not developed important
  • Established by a notification in Government Gazette
  • It is neither an elected body nor a statutory body

Town Area Committee

  • It is setup for Small Town
  • Entrusted with limited functions
  • Created by a Separate Act of State Legislature

Cantonment Board

  • Established for Civilian population in Cantonment Area
  • It works under Defense Ministry
  • Administered by Central Government
  • There are 62 Cantonment Boards in the Country which are grouped into four categories
  • It consists of partly elected and partly nominated members


  • Built by large public enterprise for its staff and workers
  • It appoints a town administrator
  • It has no elected members

Port Trust

  • Established in Port Areas
  • Created by Parliamentary Act

Special Purpose Agency

  • These are functions based bodies
  • Also known as Functional Local Bodies
  • They are Autonomous Bodies

Municipal Personnel

  • Separate personnel system
  • Unified personnel system
  • Integrated personnel system

Municipal Revenue

  • Tax Revenues
  • Non-Tax Revenues
  • Grant՚s
  • Devolution
  • Loans

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