Governor may, by notification, constitute such city transitional area or any specified part thereof as a municipal area under this Act.

The Governor may, for the purpose of application of the provisions of this Act, Classification of classify any municipal area on the basis of the population as ascertained at the Municipal areas. last preceding census of which the relevant figures have been published, as- a) aurban area of- Class 'A municipal area having population above 75,000 or Class 'B' municipal area having population above 30,000 but not exceeding 75,000 or Class 'C' municipal area having population above 20,000, but not exceeding 30,000 , and b) Nagar Panchayat having population not exceeding 20,000 : Provided that for the purpose of classification of municipal area in any hill area, pilgrim centre, tourist centre of mandi town, the Governor may, by notification, determine separate size of population for each class of such municipal areas’