In this article we will discuss the Types of Urban Local Government and its various important aspects in simple and easy language; Earlier we have discussed the history of Municipal Corporations in India, Constitutional Provisions, Current Scenario etc.

So read this article till the end and also read all related articles of local self-government to understand the whole concept very well. join our social media handle for latest articles and audio-media visuals.

Types of Urban Local Government

Types of Urban Local Government

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Types of Urban Local Government

A city is a city where 75 or more population groups (male) are engaged in non-agricultural activities. The rapidly growing cities after independence increased the need for urban self-government, but there was no uniformity in urban local governance for nearly 45 years, because there was no concrete central law in relation to it.

That is why by the 74th Constitutional Amendment in 1992, the urban local government was given constitutional status and protection. This amendment act brought uniformity in this area and the third layer of government was formed in India. (Central and state government are the first and second level of government respectively)

Today there are many types of urban local government, such as

Municipal Corporation,
Municipal Council,
Notified Area Committee
Urban area committee
Cantonment Board,
Port trust and
Special purpose agency , etc.

Types of Urban Local Government as per 74th Constitutional Amendment Act

According to the 74th Constitutional Amendment Act, under Article 243Q, the following three types of composition of municipalities have been provided: 

1. Nagar Panchayat – for the converted area, that is, the area which is changed from rural area to urban area.  

2. Municipal Council – for small urban areas 

3. Municipal Corporation – for large urban areas.

Types of Urban Local Government as per Census 2011

Similarly, as per the 2011 Census, the major urbanized areas were classified as-

[1] Statutory city : All administrative units, defined in legal terminology such as Municipal Corporation, Municipality, Cantonment Board, Notified Town Area Committee, Nagar Panchayat, are known as Statutory Cities. . As per the 2011 Census of India, there were 4041 Statutory Urban Local Bodies (ULBs) in the country.

[2] Census town : All administrative units that together satisfy the following three criteria: (i) a minimum population of 5,000 persons; (ii) 75 percent and above of the main working (male) population engaged in non-agricultural activities; and (iii) a population density of at least 400 persons per square kilometer. It is called census town. As of 2011 India census, there were 3,784 census towns in the country.

Talking about Statutory city here, there are many types, but broadly it can be divided into four parts.

1. Municipal corporation
2. Municipal council, municipal board, municipal committee
3. Town area committee
4. Notified area council or Nagar Panchayat

1. Municipal corporation

Municipal Corporation in India also known as Mahanagar Palika; There are departments formed by the state government which work for the development of metropolitan city, where the population is more than 1 million (10 lakh).

Municipal corporations are created for big cities like Delhi, Mumbai, Kolkata, Hyderabad, Bangalore and other cities. It is established in the States by the law of the respective State Legislature and in the Union Territories by an Act of the Parliament of India.

There are three authorities in the Municipal Corporation , which include the Council , the Standing Committee and the Commissioner .

The council is the ideological and legislative branch of the corporation, it consists of a directly elected councilor by the public and some nominated persons who have high knowledge and experience in city administration. In short, the composition of the council is governed by the 74th Constitutional Act including the reservation of scheduled castes, scheduled tribes and women.

The head of the council is the mayor. He is assisted by the Deputy Mayor. In most states, he is elected for a renewable term of one year. In fact, he is a figurative person and is the formal head of the corporation. His main function is to preside over the meetings of the council.

The standing committee is constituted to facilitate the work of the council which is very large in size. She looks after public affairs, education, health, tax assessment, finance and others. She makes decisions in her fields.

The Municipal Corporation Commissioner is responsible for implementing the decisions taken by the Council and the Standing Committee. That is, he is the chief executive officer of the municipality. He is appointed by the state government and is usually an officer of the rank of IAS.

2. Municipal council, municipal board, municipal committee

In India, a municipality, nagar parishad or nagar palika parishad is an urban local body that administers a city with a population of less than one million but 100,000 or more. However, there are exceptions, because previously municipalities were formed in urban centers with a population of more than 20,000, so all urban bodies were previously classified as municipalities, even if they had a population of less than 100,000.

Municipalities are established to administer towns and small towns. Like corporations, it is also constituted by the state legislature in the state and by the parliament of India in the union territories.

It is also known by other names such as municipal council, municipal committee, municipal board, suburban municipality, urban municipality and others. Like the Municipal Corporation, the municipality also has a council, a standing committee and an officer called the chief executive officer.

The head of the council is the chairman. Unlike the Mayor of the Municipal Corporation, he has an important role in the city administration. Apart from presiding over the meetings of the Council, it also exercises executive powers. The Vice President is his advisor.

The Standing Committee is constituted to facilitate the working of the Council. She looks after public affairs, education, health, tax assessment, finance and others.

The Chief Executive Officer is responsible for the day-to-day administration of the municipality. He is appointed by the state government.

3. Town area committee

Town Regional Committee is constituted for administration in small towns. It is a sub-municipal official unit and is entrusted with limited civic services such as drainage, roads, street lighting and protection.

It is constituted by a separate Act of the State Legislature. Its constitution, functions and other matters are determined by the Act. It can be elected or nominated in whole or in part by the state government.

4. Notified area council or Nagar Panchayat

A Nagar Panchayat or Notified Area Committee in India means an area that is transitioning from a rural area to an urban area. An urban center with more than 11,000 and less than 25,000 inhabitants is classified as a nagar panchayat. The composition and functions of the Nagar Panchayat are determined by the State Government.

Each Nagar Panchayat consists of a committee consisting of a chairman with ward members. The members shall consist of a minimum of ten elected ward members and three nominated members. The members of the Nagar Panchayat are elected from several wards of the Nagar Panchayat on the basis of adult franchise for five years. Seats are reserved for Scheduled Castes, Scheduled Tribes, Backward Classes and Women. The councilors or ward members are elected by direct election from the electoral wards in the Nagar Panchayat.

Apart from this, there are some other urban local governments, let us understand that too.

Some other types of urban local government

Cantonment council

Cantonment council is established for the administration of the civil population in the military area . It has been constituted under the provisions of the Cantonments Act of 2006, it functions under the administrative control of the Ministry of Defence, Central Government. Therefore, unlike the local urban units mentioned above which are administered and constituted by the state, the Cantonment Board is constituted and administered by the central government.

At present there are 64 Cantonment Boards in India which are divided into four categories on the basis of population, i.e.

Category I – Population more than fifty thousand
Category II – Population more than ten thousand but less than fifty thousand
Category III – More than two thousand five hundred Over population but less than ten thousand
Category IV – Population not exceeding two thousand five hundred

A Cantonment Board consists of partially elected or nominated members. The elected member is for a period of 3 years, while the nominated member stays at that place for a longer period of time. The army officer in whose effect the station is headed, presides over the council and presides over the assembly. The Vice-Chairman of the Council is elected by the same elected members for a term of three years.

A cantonment board consists of eight elected members, three nominated military members, three ex-officio members (station commander, garrison engineer and senior executive medical officer) and a representative of the district magistrate.

The First Class Cantonment Board consists of the following members: 1. Military Officer heading the Center 2. An Executive Engineer working in the Cantonment 3. A Health Officer working in the Cantonment 4. A First Class Magistrate to be nominated by the District Magistrate 5. Head of the Center Three military officers to be nominated by the military officer in charge. 6. Eight members elected by the people of the Cantonment area 7. Chief Executive Officer of the Cantonment Board.

The executive officer of the Cantonment Board is appointed by the President of India. It implements all the resolutions and decisions of the Council and its committee and is attached to the central cadre constituted for the purpose.

The functions performed by the Cantonment Board are similar to that of the Municipality. It is legally categorized into essential functions and ideological functions. The sources of income include both tax and non-tax revenue.

Trust port

Trust ports are established in port areas such as Mumbai, Kolkata, Chennai and others mainly for two purposes: 1. Security and maintenance of ports 2. Providing civic amenities.

The Trust Port has been constituted by an Act of Parliament. It includes both elected and non-elected members. It has an official chairman. Its civic functions are largely similar to those of a municipality.

Special purpose agency

It is a program based agency and not sector based. That is, it is constituted by the state to control specific functions. They are also known as a single purpose or broad purpose or special purpose unit. Some such units are as follows:

1. Urban Improvement Trust 2. Urban Reform Authority 3. Water Supply and Goods Clearance Board 4. Housing Board 5. Pollution Control Board 6. Electricity Supply Board 7. Urban Transport Board.

It functions as an autonomous unit and performs the functions assigned by the local urban administration independently. Therefore, it is not subordinate to the local municipal unit.

Here are the types of urban local government, let us understand some other aspects of it.

Important Facts

Municipal personnel

There are three types of municipal personnel in India. Personnel working in city governments may be related to any one or all three of the following:

1. Separate Personnel System: In this system each local body appoints, administers and controls its own personnel. These personnel cannot be transferable to other local bodies.

2. Integrated Personnel System: In this system the state government appoints, administers and controls the municipal personnel. In these, the personnel are transferred to different local bodies. This system is applicable in Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Rajasthan, Madhya Pradesh etc.

3. Integrated Personnel System: In this system the municipal personnel are the members of the state services. They can be transferred not only to local bodies but also to various departments of the state government. This system is applicable in Odisha, Bihar, Karnataka, Punjab, Haryana and other states.

Source of income

Urban local bodies have five sources of income. Those tools are as follows:

1. Tax Revenue: Revenue from local taxes includes tax, entertainment tax, advertisement tax, occupation tax, water tax, cattle tax, light tax, pilgrimage tax, market tax, road tax on new bridges, octroi and other taxes.  Octroi which is a tax imposed on goods coming into the local area, which is also levied on their use and sale. These octroi have been removed in many states.

2. Non-tax revenue: This source includes corporate property, fees, fines, royalty profits, dividends, interest, usage fees, fines and other payments. Public utility charges, such as water, sanitation, sewerage fees, etc.

3. Grants: This includes various grants made by the central and state governments to the municipal bodies for carrying out various development projects, structure projects, urban reforms, process and other schemes.

4. Transfer: It refers to the transfer of funds from the State Government to the Urban Local Bodies. This transfer is based on the recommendations of the State Finance Commission.

5. Loans: Urban local bodies also take loans from the state government and financial institutions for their expenditure. But they can take loans from financial institutions or other institutions only with the permission of the state government.


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