Polity
Local Government: 73rd and 74th Amendments
The 74th Amendment: Urban Local Bodies
Part IXA (Articles 243P–243ZG) and the Twelfth Schedule: types of municipalities, wards committees, DPC and MPC, kinds of urban bodies, municipal finance and reforms.
Prerequisites
- The 73rd Amendment: Panchayati Raj Institutions: Part IXA copies most of its design, so learn Part IX first
- Evolution of Local Government in India: Madras 1688, Mayo 1870, Ripon 1882
- Population of Chhattisgarh: urbanisation figures that make city government a live issue in the state
The Hook: Who Picks Up the Garbage?
Connect
In Ambikapur, women from self-help groups go door to door collecting waste already separated into wet and dry, and sort it further at local centres. The town’s decentralised model has been studied by other cities across India.
Garbage is not a “state” or “central” job. It belongs to the municipality (नगर पालिका), under item 6 of the Twelfth Schedule: “public health, sanitation, conservancy and solid waste management”. What did the 74th Amendment guarantee to towns and cities, and why are Indian cities still so short of money and power?
Why it matters: Prelims tests the article numbers (243Q, 243S, 243ZD, 243ZE), thresholds (3 lakh for wards committees, 10 lakh for a metropolitan area) and the Twelfth Schedule. Mains asks about urban governance, municipal finance and the mayor’s weakness.
The 74th Constitutional Amendment Act, 1992 at a Glance
| Feature | Detail |
|---|---|
| Added | Part IXA, “The Municipalities”, Articles 243P to 243ZG |
| Added | Twelfth Schedule, 18 subjects |
| Amended | Article 280(3)(c): Union Finance Commission to suggest measures to augment state funds for municipalities, on the basis of SFC recommendations |
| In force | 1 June 1993 |
Part IXA Article by Article
| Article | Subject | Key content |
|---|---|---|
| 243P | Definitions | Includes “Metropolitan area”: population 10 lakh or more, in one or more districts, with two or more municipalities or panchayats, specified by the Governor |
| 243Q | Constitution of municipalities | Three types: Nagar Panchayat (नगर पंचायत) for a transitional area (rural to urban); Municipal Council (नगर पालिका परिषद) for a smaller urban area; Municipal Corporation (नगर निगम) for a larger urban area. The Governor classifies, considering population, density, revenue, share of non-agricultural employment and economic importance |
| 243Q proviso | Industrial township | No municipality need be formed in an area the Governor specifies as an industrial township, where an industrial establishment provides the municipal services |
| 243R | Composition | Seats filled by direct election from wards. State may add non-voting experts, MPs, MLAs, MLCs and committee chairpersons. How the chairperson (mayor or president) is elected is left to the state |
| 243S | Wards Committees (वार्ड समिति) | Compulsory in municipalities with population of 3 lakh or more |
| 243T | Reservation | SC/ST by population; at least one-third for women; chairpersons’ posts as state law provides; backward classes optional |
| 243U | Duration | Five years; election within six months of dissolution; remainder-term rule as for panchayats |
| 243V | Disqualification | As for state legislature, minimum age 21 |
| 243W | Powers and functions | Self-government; Twelfth Schedule subjects as state law provides |
| 243X | Finances | State may authorise taxes, duties, tolls, fees; assign state taxes; grants-in-aid |
| 243Y | Finance Commission | The same SFC under Art 243I reviews municipal finances |
| 243Z | Audit | By state law |
| 243ZA | Elections | The same SEC under Art 243K conducts municipal elections |
| 243ZB | Union Territories | As the President directs |
| 243ZC | Exempted areas | Not applicable to Scheduled Areas and tribal areas (Art 244); Darjeeling Gorkha Hill Council saved; Parliament may extend (no such law yet, as of 2026) |
| 243ZD | District Planning Committee (ज़िला योजना समिति) | In every district; consolidates panchayat and municipal plans into a draft district development plan. At least four-fifths of members elected by and from the elected members of the district panchayat and municipalities, in proportion to rural–urban population |
| 243ZE | Metropolitan Planning Committee (महानगर योजना समिति) | In every metropolitan area; draft development plan for the whole area. At least two-thirds of members elected by elected municipal members and panchayat chairpersons of the area, in proportion to their populations |
| 243ZF | Existing laws | Continue for up to one year unless amended earlier |
| 243ZG | Courts barred | Elections challengeable only by election petition |
One DPC for both Parts
The District Planning Committee was inserted by the 74th Amendment (Art 243ZD), yet it plans for both rural and urban areas of the district. An MCQ asking “DPC is provided under which Part / Amendment?” expects Part IXA / 74th.
The Twelfth Schedule (18 Subjects)
| # | Subject | # | Subject |
|---|---|---|---|
| 1 | Urban planning, including town planning | 10 | Slum improvement and upgradation |
| 2 | Regulation of land use and construction of buildings | 11 | Urban poverty alleviation |
| 3 | Planning for economic and social development | 12 | Urban amenities: parks, gardens, playgrounds |
| 4 | Roads and bridges | 13 | Cultural, educational and aesthetic aspects |
| 5 | Water supply (domestic, industrial, commercial) | 14 | Burials, burial grounds, cremations, cremation grounds, electric crematoriums |
| 6 | Public health, sanitation, conservancy, solid waste management | 15 | Cattle pounds; prevention of cruelty to animals |
| 7 | Fire services | 16 | Vital statistics, including registration of births and deaths |
| 8 | Urban forestry, environment, ecology | 17 | Public amenities: street lighting, parking, bus stops, public conveniences |
| 9 | Safeguarding weaker sections, including persons with disabilities | 18 | Regulation of slaughter houses and tanneries |
Types of Urban Local Bodies in India
Part IXA mentions only three kinds of municipality. In practice, India has eight kinds of urban governing bodies:
| Type | Created by | Key features |
|---|---|---|
| Municipal Corporation | State Act (Act of Parliament for UTs) | Big cities. Council (deliberative, headed by the Mayor) + Standing committees + Municipal Commissioner (executive, usually an IAS officer appointed by the state) |
| Municipality (Municipal Council / Board) | State Act | Smaller towns; council headed by a president/chairperson; executive officer appointed by the state |
| Notified Area Committee | Notification by state government | Fast-growing or new industrial towns not yet meeting municipal criteria. All members nominated by the state |
| Town Area Committee | Separate state Act | Small towns; limited civic functions; elected wholly or partly |
| Cantonment Board | Cantonments Act, 2006 (replaced the 1924 Act) | Civil administration in military cantonments; under the Ministry of Defence. Partly elected, partly nominated; the Station Commander is the ex-officio president |
| Township | Set up by a large public enterprise | Civic services for staff colonies near a plant; town administrator appointed by the enterprise; no elected members |
| Port Trust | Act of Parliament | Manages and protects ports; also provides civic amenities in the port area |
| Special Purpose Agency | State Act or executive order | Function-specific bodies: urban development authorities, water and sewerage boards, housing boards, pollution boards. Not local governments, but they often take over municipal functions |
Statutory towns vs census towns (Census 2011)
| Statutory town | Census town | |
|---|---|---|
| Definition | Any place with a municipality, corporation, cantonment board or notified area committee | No urban local body, but meets all three: population at least 5,000; density at least 400 per sq km; at least 75% of male main workers in non-agricultural work |
| Number (Census 2011) | 4,041 | About 3,900 |
| Governed by | An urban local body | Usually a gram panchayat, which is not designed for urban services |
India’s urban population was 31.16% (37.7 crore) in Census 2011. The gap between census towns and their rural governance is a much-discussed problem of “hidden urbanisation”.
Analysis for Mains: Why Cities Remain Weak
Structural problems
- Weak mayor, strong commissioner: in most states the Municipal Commissioner, appointed by the state, holds executive power. The mayor is often a ceremonial head with a short term (one year in some cities, five in others), whether elected directly or indirectly.
- Parastatals: development authorities, water boards and smart-city companies (SPVs) take over planning and big projects, bypassing the elected council.
- Incomplete devolution: urban planning (item 1), the most important function, often stays with state development authorities.
- DPCs and MPCs: many are not constituted or meet rarely; spatial plans and budgets are not integrated.
- Ward committees and area sabhas exist on paper in many cities; citizens have few ways to participate between elections.
Money: municipal finance
- Own revenue is low. Property tax, the main own source, is under-assessed and poorly collected. The GST (2017) subsumed octroi and entry tax, removing an older municipal revenue source.
- Dependence on transfers: state and Union grants and scheme funds dominate. The RBI’s 2022 report on municipal finances flagged stagnant own revenue and high dependence on transfers.
- Delayed SFCs in many states weaken state-to-city transfers.
- Municipal bonds: Pune raised money through a municipal bond in 2017 under SEBI’s 2015 regulations, reviving the market; few cities can borrow on their own credit.
- Finance Commission grants: the 16th Finance Commission (2026–31) recommended about ₹3.56 lakh crore for urban local bodies, a much larger urban share than earlier commissions.
Union schemes (as context, not substitutes for devolution)
| Scheme | Launched | Focus |
|---|---|---|
| Smart Cities Mission | 25 June 2015 | Area-based development in 100 cities through SPVs |
| AMRUT | 25 June 2015 (AMRUT 2.0 in 2021) | Water supply, sewerage, green spaces |
| Swachh Bharat Mission (Urban) | 2 October 2014 | Sanitation and solid waste management |
Way forward
- Empowered, directly elected mayors with a five-year term and real executive authority (recommended in various forms by the Second Administrative Reforms Commission, 6th Report “Local Governance”, 2007).
- Transfer urban planning to elected bodies; functional DPCs and MPCs.
- Property tax reform using GIS mapping; user charges; access to bond markets.
- A municipal cadre of trained staff; ward-level participation.
- Convert large census towns into statutory towns with proper urban local bodies.
Chhattisgarh angle
Chhattisgarh has 14 municipal corporations (as of 2025) under laws inherited from Madhya Pradesh. Under Art 243R’s freedom, the state moved mayor elections from direct to indirect in 2019 and back to direct for the February 2025 polls. Ambikapur’s decentralised waste management model is a good Mains example of a city using its Twelfth Schedule function well. Details: Urban Local Bodies in Chhattisgarh.
Memory Tricks
Thresholds: '3 for Wards, 10 for Metros, 18 for Cities'
- 3 lakh population: Wards Committees compulsory (Art 243S)
- 10 lakh population: metropolitan area, so an MPC (Arts 243P, 243ZE)
- 18 subjects: Twelfth Schedule
- DPC 4/5 elected; MPC 2/3 elected: “District gets the bigger fraction because it covers both villages and towns”
Eight urban bodies: 'My Mother Never Takes Cold Tea, Prefers Sugar'
Municipal Corporation · Municipality · Notified Area Committee · Town Area Committee · Cantonment Board · Township · Port Trust · Special Purpose Agency
Don’t Confuse
| This | vs | That |
|---|---|---|
| Nagar Panchayat — urban body for a transitional area (Part IXA) | vs | Gram Panchayat — rural body (Part IX) |
| Art 243S — Wards Committees, 3 lakh+ | vs | Art 243ZE — Metropolitan Planning Committee, 10 lakh+ |
| DPC — Art 243ZD, at least 4/5 elected | vs | MPC — Art 243ZE, at least 2/3 elected |
| Notified Area Committee — all members nominated | vs | Town Area Committee — wholly or partly elected |
| Cantonment Board — Ministry of Defence, Cantonments Act 2006 | vs | Township — run by a public enterprise, no elected members |
| Eleventh Schedule — has “minor forest produce”, “PDS” | vs | Twelfth Schedule — has “fire services”, “vital statistics”, “slum improvement” |
Common Mistakes
MCQ traps
- “The Constitution requires the mayor to be directly elected.” False. Art 243R leaves the chairperson’s election to state law.
- “Wards Committees are compulsory in every municipality.” False. Only where population is 3 lakh or more.
- “The District Planning Committee was created by the 73rd Amendment.” False. 74th (Art 243ZD), though it covers rural areas too.
- “Part IXA has been extended to Scheduled Areas like PESA.” False. No law extending Part IXA to Scheduled Areas has been enacted (as of 2026).
- “Municipal elections are held by the Election Commission of India.” False. By the State Election Commission (Art 243ZA).
- “Notified Area Committees are elected bodies.” False. All members are nominated by the state government.
Practice
All questions below are original practice questions written in CGPSC style. They are not previous-year questions.
Level 1: Foundation
- Part IXA of the Constitution was added by the ______ Amendment and covers Articles ______ to ______.
- A metropolitan area under Article 243P has a population of ______ or more.
- Which body classifies an area as a transitional, smaller or larger urban area?
Answers
- 74th; 243P to 243ZG.
- 10 lakh.
- The Governor (Art 243Q).
Level 2: Prelims MCQs
Q1. Consider the following statements regarding Part IXA of the Constitution:
- Wards Committees must be constituted in every municipality irrespective of its population.
- The manner of election of the chairperson of a municipality is left to the state legislature.
- At least two-thirds of the members of a Metropolitan Planning Committee are to be elected.
Which of the statements given above is/are correct?
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 3 only
- (d) 1, 2 and 3
Answer and explanation
(b) 2 and 3 only. Wards Committees are compulsory only where population is 3 lakh or more (Art 243S). Art 243R lets the state decide how the chairperson is elected. Art 243ZE requires at least two-thirds of MPC members to be elected.
Q2. Match List I (Urban body) with List II (Feature):
| List I | List II |
|---|---|
| A. Notified Area Committee | 1. Administered under the Ministry of Defence |
| B. Cantonment Board | 2. All members nominated by the state government |
| C. Township | 3. Classified by the Governor for a transitional area |
| D. Nagar Panchayat | 4. Run by a public enterprise for its staff colony |
- (a) A-2, B-1, C-4, D-3
- (b) A-1, B-2, C-4, D-3
- (c) A-2, B-1, C-3, D-4
- (d) A-4, B-1, C-2, D-3
Answer and explanation
(a) A-2, B-1, C-4, D-3. Notified Area Committees are fully nominated; Cantonment Boards fall under the Ministry of Defence (Cantonments Act, 2006); townships are run by public enterprises; Nagar Panchayats serve transitional areas under Art 243Q.
Q3. Which of the following subjects is listed in the Twelfth Schedule but not in the Eleventh Schedule?
- (a) Drinking water
- (b) Fire services
- (c) Poverty alleviation programme
- (d) Cultural activities
Answer and explanation
(b) Fire services. It is item 7 of the Twelfth Schedule and has no counterpart in the Eleventh. Drinking water, poverty alleviation and cultural activities appear in the Eleventh Schedule, and the Twelfth has its own versions (water supply, urban poverty alleviation, cultural aspects), which is why options (a), (c) and (d) are traps.
Q4. Under Census 2011, which of the following is not one of the criteria for a census town?
- (a) A minimum population of 5,000
- (b) A density of at least 400 persons per sq km
- (c) At least 75% of male main workers in non-agricultural work
- (d) The presence of a notified urban local body
Answer and explanation
(d). A place with an urban local body is a statutory town. A census town has no urban local body but meets the three demographic criteria in (a), (b) and (c).
Level 3: Mains Answer Writing
Q1. (60 words) Distinguish between the District Planning Committee and the Metropolitan Planning Committee.
Model answer outline
- DPC (Art 243ZD): every district; consolidates panchayat and municipal plans into a draft district plan; at least four-fifths elected from district panchayat and municipal members by rural–urban population ratio.
- MPC (Art 243ZE): every metropolitan area (10 lakh+); draft plan for the metro region; at least two-thirds elected.
- Common: both added by the 74th Amendment; both send plans to the state government.
Q2. (150–200 words) “Urban local bodies in India are ‘governments’ only in name.” Critically examine with reference to the 74th Amendment.
Model answer outline
- Intro: the 74th Amendment (in force 1 June 1993) added Part IXA and the Twelfth Schedule, giving municipalities constitutional status.
- What it achieved: regular elections under SECs; reservation for SC/ST and women; SFCs; wards committees, DPCs and MPCs on paper; Finance Commission grants (16th FC: about ₹3.56 lakh crore for 2026–31).
- Why “in name only”:
- Weak mayors and state-appointed commissioners.
- Parastatals and SPVs take over planning and projects.
- Low own revenue; property tax under-assessed; octroi gone after GST.
- DPCs and MPCs dormant; little citizen participation.
- Census towns without urban governance.
- Way forward: empowered mayors (2nd ARC, 2007), property tax reform, municipal cadres, functional MPCs, bond-market access.
- Chhattisgarh angle: 14 municipal corporations; mayor election switched from direct to indirect (2019) and back (2025); Ambikapur waste model.
- Conclusion: constitutional status is necessary but not sufficient; cities need funds, functions and functionaries to govern.
Quick Revision Table
| Fact | Detail |
|---|---|
| Part / Articles | Part IXA, Arts 243P–243ZG |
| Schedule | Twelfth, 18 subjects |
| In force | 1 June 1993 |
| Three types (243Q) | Nagar Panchayat (transitional), Municipal Council (smaller), Municipal Corporation (larger) |
| Classified by | Governor |
| Industrial township | 243Q proviso; no municipality needed |
| Wards Committees | 243S; population 3 lakh+ |
| Reservation | 243T; SC/ST, women at least 1/3, BC optional |
| SFC / SEC | 243Y / 243ZA (same bodies as 243I / 243K) |
| Exempt areas | 243ZC; Scheduled and tribal areas |
| DPC | 243ZD; at least 4/5 elected |
| MPC | 243ZE; metro area 10 lakh+; at least 2/3 elected |
| Union FC link | Art 280(3)(c) |
| Eight urban bodies | Corporation, municipality, NAC, TAC, cantonment, township, port trust, SPA |
| Census 2011 | 31.16% urban; 4,041 statutory towns |
Key Takeaways
Key Takeaways
- Part IXA (Arts 243P–243ZG) and the Twelfth Schedule (18 subjects) came into force on 1 June 1993.
- Three types of municipality are classified by the Governor; the mayor’s mode of election is a state choice.
- Thresholds: 3 lakh for Wards Committees, 10 lakh for a metropolitan area.
- DPC (243ZD) and MPC (243ZE) come from the 74th Amendment.
- For Mains: weak mayors, parastatals and thin municipal finances explain the gap between constitutional status and real power.
What’s Next
- PESA, 1996 and Tribal Self-Rule: how Scheduled Areas are governed
- Urban Local Bodies in Chhattisgarh: 14 corporations and the mayor switches
- Welfare Programmes and Schemes: urban missions in the wider welfare picture
- Local Government in India — Quick Revision: the whole chapter on one page
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