Local Self-Government

 Local Self-Government is the third level of governance alongside the State and Central
Government. Rooted in Gandhian philosophy, the concept of Panchayati Raj envisions Village
Panchayats as self-governing units.
 Panchayati Raj Institutions (PRIs) serve as instruments for empowering people, and fostering
tangible progress in their socio-economic lives through direct participation in routine
administration.
The evolution of Panchayati Raj Institutions
 The evolution of Panchayati Raj Institutions is guided by Article 40 of the Indian Constitution,
which mandates the state to organize Village Panchayats and endow them with powers to function
as units of self-government.
 Traditionally, Panchayats, led by five elderly wise men, played a crucial role in local
administration, utilizing their acumen.
 During the colonial period, influential British authorities like Lord Mayo and Lord
Riponemphasized the role of Panchayats in efficient local administration.
 They made efforts to delegate certain functions to Panchayats, earning Lord Ripon the title of
the Father of Local Self-Government.
Committee Recommendations
 Key recommendations from prominent committees are outlined below:
Balwant Rai Mehta Committee
 In 1957, the Government of India formed a committee, chaired by Balwant Rai G Mehta, to
assess the Community Development Programme (1952) and theNational Extension
Service (1953) and propose enhancements.
 The committee’s November 1957 report introduced the concept of democratic decentralization,
known as the Panchayati Raj.
 It suggested a three-tier Panchayati Raj System—Gram Panchayat at the village
level, Panchayat Samiti at the block level, and Zila Parishad at the district level—linked through
indirect elections.
 Direct elections were recommended for Panchayat members at each level, with planning and
developmental responsibilities entrusted to these bodies.
 The Panchayat Samiti was designated as the executive body, and the Zila Parishad as the
advisory and supervisory body.
 The District Collector was proposed as the Zila Parishad Chairman, emphasizing a genuine
transfer of power to these democratic bodies.
 The National Development Council (NDC) accepted these recommendations in January 1958,
leaving it to states to adapt them to local conditions.
 Rajasthan pioneered the implementation of Panchayati Raj in Nagaur districts on October 2,
1959, followed by Andhra Pradesh.
K Santhanam Committee
 In 1963, the K Santhanam Committee focused on PRI finance issues, addressing the sanctioning
of grants, financial relations between the three tiers of PRIs, and revenue allocation.
Ashok Mehta Committee
 Appointed by the Janata Government in December 1977, the Ashok Mehta Committee submitted
its report in August 1978.
 It recommended revitalizing the declining Panchayati Raj System by transitioning from a three-
tier to a two-tier system—Zila Parishad at the district level and below it, the Mandal Panchayat
for villages with a population up to 20,000.
 The district became the primary decentralization point under popular supervision. The Zila
Parishad assumed executive responsibilities for district-level planning, and Panchayati Raj
Institutions gained compulsory taxation powers for financial autonomy.
 The committee advocated for regular social audits at the district level and oversight by a
legislative committee to ensure funds allocated for vulnerable groups were properly utilized.
 The State Government was discouraged from superseding Panchayati Raj Institutions, with
elections mandated within six months in case of supersession.
  Nyaya Panchayats, focusing on justice, were recommended to operate separately and be presided
over by a qualified judge.
 Transferring development functions to the Zila Parishad, with all development staff operating
under its control and supervision, is a crucial step. Voluntary agencies must actively engage in
garnering support for the Panchayati Raj.
 To ensure focused attention on Panchayati Raj affairs, a dedicated Minister should be appointed
within the State Council of Ministers. The reservation of seats for Scheduled Castes (SCs) and
Scheduled Tribes (STs) should be based on their population.
 Unfortunately, due to the premature collapse of the Janata Government, the recommendations of
the Ashok Mehta Committee at the Central level could not be implemented.
Nevertheless, Karnataka, West Bengal, and Andhra Pradesh took initiatives to revitalize the
Panchayati Raj, considering some of the Ashok Mehta Committee’s suggestions.
Dantawala Committee:
 Established in 1977, the Dantawala Committee proposed a framework for block-level planning.
 According to its recommendations, block-level planning should be the appropriate sub-state
planning level for a comprehensive understanding of the actual needs of the people.
Hanumantha Rao Committee:
 Formed in 1984, the Hanumantha Rao Committee advocated for separate district planning bodies,
either under the District Collector or a Minister.
GVK Rao Committee:
 Constituted in 1985 by the Planning Commission, the GVK Rao Committee identified the
bureaucratization and detachment of the development process from the Panchayati Raj.
 It recommended elevating Zila Parishad as the key body for democratic decentralization, assigning
specific roles to district and lower levels, and creating the position of District Development
Commissioner as the Chief Executive Officer of the Zila Parishad.
LM Singhvi Committee:
 Appointed in 1986 by the Rajiv Gandhi Government, the LM Singhvi Committee proposed
constitutional recognition, protection, and preservation of Panchayati Raj Institutions.
 It suggested adding a new chapter to the Constitution and establishing Nyaya Panchayats for
clusters of villages.
 The importance of Gram Sabha as the embodiment of direct democracy was emphasized, along
with the need for more financial resources for Village Panchayats.
 Judicial tribunals were recommended to address controversies about Panchayat elections.
Thungon Committee:
 Established in 1988 under the leadership ofPK Thungon, the Thungon Committee investigated
the political and administrative organization in the district and district planning.
 It urged the strengthening and constitutional validation of the Panchayati Raj System.

Gadgil Committee:
 Established in 1989 under the leadership of VN Gadgil, the committee focused on formulating
policies and programs for Panchayats. It delved into strategies to enhance the effectiveness of
Panchayati Raj Institutions, presenting key recommendations:
 Panchayati Raj Institutions should have afixed five-year term.
 Members of the Panchayats at all three levels should be directly elected.
 The responsibility for preparing and executing socio-economic development plans should rest
with Panchayati Raj authorities, with a designated list of subjects in the Constitution.
 Taxation and duties should be administered, collected, and managed by Panchayat Raj entities.
 The establishment of a State Finance Commission to oversee fund distribution to the Panchayats.
 The formation of a State Election Commission to supervise the conduct of Panchayat elections.
Constitutionalization of Panchayati Raj Institutions:
  The Rajiv Gandhi Government introduced the 64th Constitutional Amendment Bill in July 1989 to
constitutionalize Panchayati Raj Institutions, making them more potent and inclusive. However, it
did not pass Parliament. A second attempt by the VP Singh Government in November 1989
lapsed with the fall of the government.
 The Narasimha Rao Governmentintroduced the Constitutional Amendment Bill in September
1991.
 The bill passed in the Lok Sabha on December 22, 1992, and in the Rajya Sabha on December 23,
emerging as the 73rd Constitutional Amendment Act, 1992, enforced from April 24, 1993.
Salient Features of the Act:
 Corresponding to Part IX of the Constitution of India, the Act introduced the Eleventh
Schedule, encompassing 29 functional items for Panchayats.
 Granting Constitutional Status to Panchayati Raj Institutions.
 State Governments are constitutionally obligated to adopt the new Panchayati Raj System in line
with the Act.
 Panchayat formation and regular elections are not contingent on the will of the State Government.
 The Act’s provisions can be categorized into compulsory, required in State Laws (timely
elections, reservations, etc.), and voluntary, at the discretion of states (devolution of powers, taxes,
etc.).
Provisions of the Act
 The Act encompasses several provisions:
Gram Sabha:
 By Article 243A, the Gram Sabha constitutes individuals registered in the electoral rolls of the
village within the Panchayat’s jurisdiction at the village level.
 It functions as a Village Assemblycomprising all registered voters in the Panchayat area, wielding
powers and performing functions as determined by the State Legislature.
 Gram Sabha convenes at least twice annually, with a quorum set at one-tenth of the total members.
Three-tier System:
 As stipulated in Article 243B, the Act establishes a three-tier system of Panchayats at the village,
intermediate block, and district levels, except in states with a population below 20 lakhs.
Election of Members and Chairpersons:
 Article 243C mandates the direct election of all Panchayat members at the village, intermediate,
and district levels by the people.
 Chairpersons at the intermediate and district levels are indirectly elected from among the elected
members.
 The election of a village-level Panchayat Chairperson is determined by the State Legislature.
Reservation of Seats:
 In line with Article 243D, the Act provides for the reservation of seats for Scheduled Castes and
Scheduled Tribes in every Panchayat, proportionate to their population in the Panchayat area.
 The Act mandates the reservation of not less than one-third of the total seats for women, including
those reserved for women from SCs and STs.
 The Legislature of a State is authorized to reserve seats in any Panchayat or Chairperson offices at
any level in favor of backward
Duration of Panchayats:
 As per Article 243E, Panchayats at all levels have a standard tenure of five years. However, they
can be dissolved before completing their term.
 Fresh elections to constitute a Panchayat must be completed before the expiry of its five-year term
or, in case of dissolution, within six months from the date of dissolution.
Disqualifications:
 Article 243F outlines disqualifications for Panchayat membership, disqualifying individuals as
follows:
 Under any current election laws for the state legislature.
  Under any laws enacted by the State Legislature.
 No person shall face disqualification on the grounds of being less than 25 years of age if they have
attained the age of 21 years. Disqualification matters are referred to the authority determined by
the State Legislature.
Powers and Functions:
 Article 243G empowers the State Legislature to grant Panchayats the necessary powers and
authority to function as self-government institutions.
 This scheme may include provisions for devolving powers and responsibilities to Panchayats at
the appropriate level, particularly in the preparation of plans for economic development and social
justice.
 Panchayats are entrusted with the implementation of schemes for economic development and
social justice, including those related to the 29 matters listed in the Eleventh Schedule.
Financial Arrangements
 Articles 243 Hand 243 L empower the State Legislature to enact laws enabling a Panchayat to
impose, collect, and utilize taxes, duties, tolls, and fees.
 The State Legislature can assign to a Panchayat the taxes, duties, tolls, and fees imposed and
collected by the State Government.
 It can also allocate grant-in-aid to the Panchayats from the State Consolidated Fund and establish
funds to cover their financial needs.
State Finance Commission
 According to Article 243 1, the Governor of a State must establish a Finance Commission to
assess the financial status of the Panchayats every five years. The commission provides
recommendations to the Governor on:
 Principles governing the distribution of net proceeds of state-imposed taxes, duties, tolls, and fees
between the States and Panchayats.
 Principles for determining taxes, duties, tolls, and fees assigned to the Panchayats.
 Principles for grants-in-aid to the Panchayats from the State Consolidated Fund, along with
measures to enhance their financial position.
 The Central Finance Commission also proposes measures to augment the State Consolidated
Fund to support Panchayats’ resources. The Governor presents the State Finance Commission’s
recommendations to the State Legislature.
Audit of Panchayat Accounts
 As per Article 243 J, the State Legislature may establish provisions regarding the maintenance
and auditing of Panchayat accounts.
State Election Commission
 According to Article 243K, the State Election Commission is entrusted with the supervision,
direction, and control of electoral roll preparation and Panchayat election conduct.
 It comprises a State Election Commissioner appointed by the Governor.
 The Commissioner’s conditions of service and tenure are determined by the Governor.
 The Commissioner can only be removed following the prescribed procedure and grounds for
removing a State High Court Judge.
 The Commissioner’s conditions of service cannot be altered to their detriment after appointment.
The Eleventh Schedule
 Under Article 243 G, the Eleventh Schedule outlines 29 functional items within Panchayats’
jurisdiction:
 Agriculture, including agricultural extension
 Land improvement, implementation of land reforms, land consolidation, and soil
conservation
 Minor irrigation, water management, and watershed development
 Animal husbandry, dairying, and poultry
  Fisheries
 Social forestry and farm forestry
 Minor forest produce
 Small-scale industries, including food processing industries
 Khadi, village, and cottage industries
 Rural housing
 Drinking water
 Fuel and fodder
 Roads, culverts, bridges, ferries, waterways, and other means of communication
 Rural electrification, including electricity distribution
 Non-conventional energy sources
 Poverty alleviation programs
 Education, including primary and secondary schools
 Technical training and vocational education
 Adult and non-formal education
 Libraries
 Cultural activities
 Markets and fairs
 Health and sanitation, including hospitals, primary health centers, and dispensaries
 Family welfare
 Women and child development
 Social welfare, including the welfare of the handicapped and mentally retarded 27
 Welfare of the weaker sections and, in particular, the Scheduled Castes and Scheduled
Tribes
 Public distribution system
 Maintenance of community assets
Mandatory Provisions
 Establishment of Gram Sabha in every village and the creation of a three-tier Panchayati
Raj System at the District, Block, and Village levels.
 Direct elections to fill almost all posts at all levels, with the Chairperson positions at the Zila
Parishad and block levels filled through indirect election.
 The minimum age for contesting Panchayat elections is set at 21 years.
 Reservation of seats for Scheduled Castes/Scheduled Tribes in Panchayatsproportionate to their
population, and one-third of seats reserved for women.
 Creation of a State Election Commission in each State to conduct Panchayat elections.
 The tenure of Panchayats at all levels is five years, and if dissolved earlier, fresh elections must be
held within six months.
 Establishment of a State Finance Commission in each state every five years.
Voluntary Provisions
 Representation of Members of Parliament and State Legislature in Panchayats within their
constituencies.
 Reservation of seats (both members and chairpersons) for backward classes in Panchayats at any
level.
 Devolution of powers and responsibilities to Panchayats for economic development and social
justice under the 11th Schedule.
  Assignment of taxes, duties, tolls, and fees levied and collected by the State Government to
Panchayats.
 Grants-in-aid to Panchayats from theConsolidated Fund of the State.
Panchayats Extension to Scheduled Areas Act, 1996 (PESA)
 The 73rd Amendment Act, 1992 did not apply to Five Schedule and six areas. Consequently,
the PESA Act, 1996 was enacted based on the Bhuria Committee’s report and came into
operation on December 24, 1996.
 The Ministry of Panchayati Raj is the nodal ministry for implementing its provisions in states.
 This Act extends Panchayats to the tribal areas of nine states, namely, Andhra Pradesh,
Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Maharashtra, Madhya Pradesh, Odisha, and
Rajasthan. It aims to provide self-rule to the tribal people and allow them to govern themselves
and their resources.
 All State Governments have enacted their State Legislations in line with the PESA Act, 1996. The
Act grants significant governance powers to the tribal community and recognizes its traditional
community rights over local natural resources.
 It not only acknowledges the validity of customary law, social and religious practices, and
traditional management practices of community resources but also prohibits the State Government
from making any law inconsistent with these.
Features of the PESA Act
 Customary law, social and religious values, and traditional community resource management
practices must be considered while drafting State Legislation governing Panchayats in Scheduled
Areas.
 Every village must have a Gram Sabha responsible for defending and preserving the people’s
customs, practices, cultural identity, local resources, and conventional dispute resolution
techniques.
 Gram Sabha approves plans, programs, and projects for social-economic development.
 Each Village Panchayat needs a Gram Sabha certificate confirming fund usage for designated
plans, activities, and projects.
 The number of seats reserved for Scheduled Areas in each Panchayat must be equivalent to the
population of the communities, with a minimum of 50% of available seats reserved.
 Chairperson positions at all levels will be reserved for members of Scheduled Tribes.
 Consultation with the Gram Sabha or Panchayats at the relevant level is mandatory before
acquiring land in Scheduled Areas.
 The State Government may nominate Scheduled Tribes candidates for election to the intermediate
or district-level Panchayat without representation. However, the total number of nominees for
Panchayat’s election cannot exceed one-tenth.
 The Gram Sabha or Panchayats at the appropriate level must make recommendations for granting
a prospecting license or mining lease for minor minerals in the Scheduled Areas.
 Gram Sabha is specifically endowed with the following powers:
 The power to enforce prohibition or regulate/restrict the sale and consumption of any intoxicant.
 Ownership of minor forest produce.
 The power to prevent alienation of land in the scheduled areas and take appropriate action to
destroy any unlawfully alienated land of a Scheduled Tribes.
 The power to manage village markets by any name.
 The power to exercise control over money lending to the Scheduled Tribes.
 The power to exercise control over institutions and functionaries in all social sectors; control over
local plans and resources for such plans, including tribal sub-plans.
 State legislations must include safeguards to prevent higher-level Panchayats from assuming
powers and authority of lower-level Panchayats or Gram Sabha.
  When establishing the administrative framework for district-level Panchayats in Scheduled Areas,
the State Legislature shall endeavor to adhere to the pattern of the Constitution’s Sixth Schedule.
 Any provision of any law (relating to Panchayats in Scheduled Areas) inconsistent with the Act
shall cease to be in force one year from the date on which this Act receives the President’s assent.
Urban Government
 In urban areas, local self-government units are known as municipalities. The term urban local
government in India refers to the process by which people, through elected officials, govern an
urban region.
 The system of urban government was constitutionalized through the 74th Constitutional
Amendment Act of 1992. Urban local governments can only regulate specific urban areas
designated by the State Government.
 Urban local government is overseen by the following three ministries:
 Ministry of Housing and Urban Affairs (States).
 Ministry of Defence (Cantonment Boards).
 Ministry of Home Affairs (Union Territories).
Evolution of Urban Local Bodies in India
 Municipal organizations have a long history in India.
 The first Municipal Corporation was established in the former Presidency Town of Madras in
1688. Similarly, corporations were later established in Bombay and Calcutta in 1726.
 The establishment of local self-government institutions was envisioned in Lord Mayo’s
Resolution on financial decentralization in 1870, also known as the Magna Carta of Urban Self-
Governance.
 The first urban local government in India was the Municipal Corporation in Madras, established
by a charter granted in 1687.
 The Royal Commission on Decentralization was appointed in 1907 and submitted its report in
1909, with Hobhouse serving as its Chairman.
 According to the Government of India Act, of 1919, under the monarchical system, local self-
government was transferred to the purview of an Indian Minister with the appropriate authority.
 The protection of democracy in Parliament and States is explicitly outlined in the Indian
Constitution. However, the Constitution did not explicitly mandate local self-government in
metropolitan areas.
74th Constitutional Amendment Act, 1992
 Constitutional status for municipalities was established through the 74th Constitutional
Amendment Act of 1992,which became effective on June 1, 1993.
 This Act introduced Part-IX (A) to the Constitution of India and added the Twelfth Schedule to
the Constitution. The Act encompasses 18 functional items for municipalities, spanning
from Articles 243P to 243ZG, bringing them under the justifiable part of the Constitution.
 The Act aims to establish a uniform framework for urban local bodies and enhance their capacity
to function as effective democratic units of self-government.
Constitution of Municipalities
 According to Article 243Q, the following shall be constituted in every state:
 A Nagar Panchayat for a transitional area, transitioning from a rural to an urban area.
 A Municipal Council for a smaller urban area.
 A Municipal Corporation for a larger urban area by the provisions of this part.
Composition of Municipalities
 As per Article 243R, all seats in a municipality shall be filled by persons chosen by direct election
from territorial constituencies in the municipal area.
 Each municipal area shall be divided into territorial constituencies known as Wards.
 The Legislature of a State may, by law, provide for the representation in a municipality of persons
with special knowledge or experience in municipal administration, members of the House of the
 People, members of the Legislative Assembly, members of the Council of States, members of the
Legislative Council of the State, and Chairpersons of Committees constituted under Clause (5) of
Article 243S.
Wards Committees
 Article 243S provides for Wards Committees, constituted within the territorial area of a
municipality having a population of 3 lakhs or more.
 The Legislature of a State may make provisions regarding the composition and territorial area of a
Wards Committee, as well as how seats in a Wards Committee shall be filled.
Reservation of Seats
 Article 243T provides for the reservation of seats for Scheduled Castes and Scheduled Tribes in
every municipality in proportion to their population in the municipal area.
 It also mandates the reservation of not less than one-third of the total number of seats for women,
including those reserved for women belonging to SCs and STs. The State Legislature may make
provisions for the reservation of seats for the offices of chairpersons in municipalities for SCs,
STs, and women.
Duration of Municipalities
 Article 243U stipulates that every municipality has a five-year tenure, and before dissolution, it is
provided a fair opportunity to be heard. If a municipality is dissolved earlier than the required five
years, elections must be held within six months to constitute the municipality.
 A municipality formed upon the dissolution of another municipality before the completion of its
tenure shall only continue for the remaining period that the dissolved municipality would have
served had it not been dissolved.
Disqualification of Members
 According to Article 243V, a person shall be disqualified from being chosen as a member of a
municipality if disqualified under any currently effective law for State Legislature elections.
 It also specifies that a person under 25 years of age, who has attained the age of 21, shall not be
disqualified unless a State law passed by the State Legislature imposes such disqualification.
 If there is uncertainty regarding a member’s disqualification, the matter shall be referred to the
authority designated by the State Legislature for judgment.
State Election Commission
 The State Election Commission is entrusted with the superintendence, direction, and control of the
preparation of electoral rolls and the conduct of all municipality elections. The State Legislature
may legislate on all matters related to municipality elections.
Powers and Functions of Municipalities
 Article 243W empowers municipalities with the necessary powers and authorities for self-
governance. The law also outlines the devolution of powers and responsibilities to municipalities,
including the preparation of plans for economic development and social justice, and the
implementation of schemes listed in the Twelfth Schedule.
 Committees are endowed with powers necessary to fulfill their responsibilities, including those
related to the matters listed in the Twelfth Schedule.
Financial Provisions
 Article 243X grants the State Legislature the authority to authorize a municipality to levy, collect,
and appropriate taxes, duties, tolls, and fees within specified procedures and limits.
 The State Legislature may assign such taxes, duties, tolls, and fees collected by the State
Government to municipalities, subject to conditions and limits.
 The State Legislature may also provide grants-in-aid to municipalities from the Consolidated Fund
of the State. It can establish funds for crediting all received monies by or on behalf of the
municipalities and specify the withdrawal procedures.
Finance Commission
 Article 243Y dictates that the Finance Commission, responsible for Panchayats, shall also review
the financial position of municipalities every five years.
 It recommends principles governing the distribution of net proceeds of state-imposed taxes, duties,
tolls, and fees between states and municipalities. It also suggests principles for determining taxes,
 duties, tolls, and fees assigned to municipalities, as well as principles for grants-in-aid from the
Consolidated Fund of the State.
 The State Legislature may legislate on the composition, qualifications, and selection procedures of
the Commission.
 The Governor presents the Commission’s recommendations, along with the action taken report,
before the State Legislature.
 The Central Finance Commission will also propose measures to enhance the Consolidated Fund of
the State, supplementing the resources of municipalities in the states based on recommendations
made by the State Finance Commission.
Audit of Accounts
 According to Article 243Z, the State Legislature may establish provisions regarding the
maintenance of accounts by municipalities and the auditing of such accounts.
Application to Union Territories
 As per Article 243ZA, the provisions of this part apply to Union Territories. However, the
President may direct their application to a Union Territory with exceptions and modifications as
specified.
Exempted Areas
 Under Article 243ZB, the Act does not apply to scheduled areas and tribal areas in the states.
 It also does not impact the functions and powers of the Darjeeling Gorkha Hill Council of West
Bengal. Nevertheless, Parliament may extend the provisions of this part to the Scheduled Areas
and Tribal Areas with specified exceptions and modifications.
 The 74th Amendment Act provided for Compulsory and Voluntary Provisions for Municipalities
as follows:
Compulsory Provisions
 Establishment of Nagar Panchayats, Municipal Councils, and Municipal Corporations in urban
areas.
 Reservation of seats (both members and chairpersons) for SCs, STs, and OBCs in Municipalities
at all three levels.
 Reservation of one-third seats (both members and chairpersons) for women in Municipalities at all
three levels.
 Fixing a tenure of five years for Municipalities at all levels and holding fresh elections within six
months in the event of supersession of any Municipality.
 Establishment of a State Election Commission for conducting elections to the Municipalities.
 Constitution of a State Finance Commission every five years to review the financial position of
the Municipalities.
Voluntary Provisions
 Representation of members of Parliament and State Legislature in Municipalities at different
levels within their constituencies.
 Reservation of seats (both members and chairpersons) for backward classes in Municipalities at
any level.
 Devolution of powers and responsibilities upon Municipalities to prepare plans for economic
development and social justice, and to perform some or all functions listed in the Twelfth
Schedule of the Constitution.
 Granting financial powers to Municipalities, authorizing them to levy, collect, and appropriate
taxes, duties, tolls, and fees.
Committee for District Planning
 As per Article 243ZC, there shall be constituted a District Planning Committee in every state at
the district level to consolidate plans prepared by Panchayats and Municipalities in the district and
to prepare a Draft Development plan for the district as a whole.
 The Legislature of a State may make provisions regarding the composition of District Planning
Committees, specifying that four-fifths of the total members of such a committee shall be elected
 by the elected members of the District Panchayat and Municipalities in the district, functions
related to district planning assigned to such committees, and the manner in which the
Chairpersons of such committees shall be chosen.
 Each District Planning Committeeformulates a preliminary development plan addressing
common interests shared between Panchayats and Municipalities. This plan encompasses spatial
planning, equitable distribution of water and other natural resources, as well as the integrated
development of infrastructure and environmental conservation.
 The committee tailors the draft development plan based on the available resources, whether
financial or otherwise, and seeks input from institutions and organizations specified by the
Governor through an official order.
 Subsequently, the Chairperson of each District Planning Committee forwards the recommended
development plan to the State Government.
Committee for Metropolitan Planning
 Article 243ZE mandates the establishment of a Metropolitan Planning Committee in each
metropolitan area to formulate a comprehensive development plan for the entire metropolitan
region.
 The State Legislature is empowered to make provisions regarding:
 The composition of Metropolitan Planning Committees, including the method for filling the seats.
It stipulates that at least two-thirds of the committee members must be elected representatives
from Municipalities in the metropolitan area.
 The representation of the Government of India, the State Government, and designated
organizations in these committees.
 Defining the functions related to planning and coordination for the metropolitan area, including
the selection process for the Chairpersons of such committees.
 Every Metropolitan Planning Committee, during the preparation of the draft development plan,
is required to consider plans developed by Municipalities and Panchayats in the metropolitan area.
 This includes coordinated spatial planning, resource sharing, integrated infrastructure
development, and environmental conservation, focusing on matters of common interest between
Municipalities and Panchayats.
 The committee also takes into account the overall objectives and priorities set by the Government
of India and the State, as well as the anticipated investments in the metropolitan area by
government agencies.
 The Metropolitan Planning Commission consults institutions and organizations specified by the
Governor.
 The Chairperson of each Metropolitan Planning Committee then forwards the recommended
development plan to the State Government.
Continuance of Existing Laws and Municipalities
 According to Article 243ZF, all state laws about Municipalities will remain effective until one
year from the commencement of this Act.
 Existing Municipalities at the outset of this Act will persist until the conclusion of their term
unless dissolved by the State Legislature.