NCERT Solutions Exploring Society: India and Beyond Chapter 12 Types of urban local body, and how they are funded — LET’S EXPLORE

Book page 179 Updated on2026-09-05

Q1.
Select a few cities, from your State and from a few neighbouring States. These may include the city you live in or the city nearest to your town or village. How will you find out if they have a Nagar Panchayat, Municipal Council or Municipal Corporation? Draw a table with the names of the cities and the type of urban local body each of them has.
Answer

First fix the rule, then go and check. The rule is given on page 179 and depends only on population.

Population of the city or townHighest urban local bodyAlso called
Above 10 lakhsMunicipal Corporation‘Mahanagar Nigam’ / Nagar Nigam
Between 1 and 10 lakhsMunicipal Council‘Nagar Palika’ / City Council
Smaller populations (below about 1 lakh)Nagar PanchayatTown Panchayat in some States

How will you find out? Five honest ways, best first:

  1. Look at the name on the office itself. Every urban body has a board — “___ Municipal Corporation”, “___ Nagar Palika Parishad”, “___ Nagar Panchayat”. So does the water bill, the property tax receipt and the birth or marriage certificate issued in that town.
  2. Look at the dustbins, water tankers and street-light poles. They usually carry the body’s name and its logo.
  3. Ask at the ward office, or ask your ward councillor, or ask an adult who pays property tax there.
  4. Check the official website of the city and of your State’s Urban Development / Local Self-Government department. Most States publish a full list of their corporations, councils and nagar panchayats.
  5. Use the population as a cross-check, not as the answer. Look up the town’s population and see whether the body you found matches the rule above.

Model table — draw it like this and fill in your own cities. The last column is the one that makes you think.

City or townStateType of urban local bodyHow I found out
The city I live in / nearest to meMy StateName board on the municipal office
My State’s capitalMy StateMunicipal Corporation (in almost every State)Property tax receipt seen at home
A big town in my districtMy StateState department website
A small town near the district borderMy StateAsked at the ward office
A city in a neighbouring StateNeighbouring StateIts official city website
A hill town or a new town in a neighbouring StateNeighbouring StateName printed on its water tanker
Two things you will probably discover, and both are correct:
1. Some towns whose population has crossed a mark still have the older, smaller kind of body — because the change has to be notified by the State Government, and that takes time.
2. The exact population figures differ from State to State. The Constitution lets each State decide, taking into account population, density, revenue and how many people work outside farming. So treat the 1-lakh and 10-lakh marks as the general rule the chapter gives, and be ready for a local exception.
Why the type matters: a Municipal Corporation has more wards, a bigger budget, more powers and its own Municipal Commissioner. A Nagar Panchayat runs a small town with a much smaller staff. So knowing which body governs a place tells you roughly how much it can do on its own — and whom you should approach with a complaint.
Q2.
How do urban local bodies fund their activities? (Hint: Look carefully at the pictures of the functions performed by Indore Municipal Corporation in Figure 12.4 on page 178.) Are some of them paid services?
Answer

Start where the hint points. Look at the very first row of Fig. 12.4 on page 178 — PROPERTY TAX, WATER CHARGES, and BUSINESS, HOARDINGS, TRADE LICENSES. Those three panels are not services the Corporation gives; they are money the Corporation takes in. And page 176 says the same thing in words: urban local bodies are responsible for “collecting local taxes and fines”.

Where the money comes from — four streams:

StreamExamplesSeen in Fig. 12.4?
1. Its own taxesProperty tax on houses, shops and land — usually the largest single source; tax on advertisements and hoardings; in some States a tax on vehicles or entertainmentYes — “PROPERTY TAX” and “BUSINESS, HOARDINGS, TRADE LICENSES”
2. User charges and feesWater charges; sewerage and solid-waste user fees; trade and shop licence fees; building permission fees; market and parking fees; fees for a marriage or birth certificate; rent from municipal shops, halls and land; fines for littering or illegal constructionYes — “WATER CHARGES”, the licence panels, and the “CRM — SERVICES ON REQUEST” row
3. Money from the State GovernmentGrants, and a share of State taxes, worked out on the advice of the State Finance Commission that each State sets up every five yearsNo — this does not show up in a picture of services
4. Money from the Central Government and schemesGrants recommended by the Central Finance Commission; and scheme funds such as the Swachh Bharat Mission (Urban), AMRUT for water and sewerage, PMAY (Urban) for housing and the Smart Cities Mission. Bigger corporations may also borrow, sometimes by issuing municipal bondsIndirectly — Swachh Survekshan on page 179 belongs to this stream

Are some of them paid services? Yes — many are. Read Fig. 12.4 again with that question in mind:

Service in Fig. 12.4Usually paid or free?
Water supplyPaid — the panel is literally called “WATER CHARGES”
Business, hoardings and trade licences; various licencesPaid — a fee is charged for issuing and renewing each licence
Marriage certificate and other recordsPaid — usually a small fixed fee
Water tanker, septic tanker, debris clearancePaid — booked on request at a fixed rate
Auditorium (the municipal hall)Paid — rented out for functions
Tree cutting and tree transportationPaid, and permission is needed first
Solid waste collectionOften a small monthly user charge, on top of property tax
Fire services, ambulance, funeral van, mobile toilet, grievance redressalUsually free or heavily subsidised, because they are emergencies or basic dignity — though a few cities charge a nominal amount for some of them
Why a city charges for some things and not for others: a charge does two jobs at once — it raises money, and it discourages waste. If water were completely free, a leaking tap would cost the household nothing, and the whole city would pay. But nobody should have to hesitate before calling a fire engine or an ambulance, so those are kept free. That is the line most municipal bodies draw. Emergencies free; conveniences paid.
Check it yourself: ask at home to see a property tax receipt or a water bill. Look for the name of the urban local body printed on it, the period it covers, and what the amount is calculated on. You are looking at your own family’s share in the running of your city.
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