Declaration of intention to constitute a municipal area.

Whenever the Governor is satisfied that any smaller or larger urban area or a transitional area, that is to say. an area in transition from a rural area to an urban area- (i) contains a population of not less than five lakhs in such larger urban area or not less than fifty thousand in such smaller urban area or less than fifty thousand in such transitional area ; (ii) has a density of population of not less than five hundred inhabitants per square kilometere of area ; (iii) has an occupational pattern in which more than one half of the adult population are chiefly engaged in pursuit other than agriculture, and if such area is constituted a Municipal area the revenue generated for local administration and other municipal income are likely to be adequate for discharge of municipal functions under this Act, he may, by notification declare the intention to constitute such areas as larger urban Municipal area, or, as the case may be, a smaller urban Municipal area or a transitional Municipal area; Provided that nowithstanding anything contained herein the Governor may by public notification especify a larger urban area, a smaller urban area or a transitional area having regard to the population, density of population of the area, revenue generated for local administration, percentage of employment in non-agricultural activities, the economic importance of the area and such other factors as he may deem fit.