• State legislatures can decide the composition of municipalities.

• State legislatures can decide whether they want committees at the ward level or other levels within a municipal area.

• The state legislatures will decide the power and authority they want to give municipalities.

• Seats will be reserved for scheduled castes, scheduled tribes and women.

• Tenure of municipalities will be five years.

• Power to impose taxes will be decided by the state legislatures.

• A finance commission will be constituted to review the financial position of the municipalities.

• Subjects to be looked after by municipalities include urban planning, land use regulations, urban forestry, urban poverty alleviation and slum improvement.

JPC recommendations

• State legislatures should decide all matters relating to the elections to municipalities.

• Power of the Parliament to extend the provisions of the bill to scheduled areas and tribal areas should be exercised only if the concerned state legislature passes a resolution to that effect.

• Where there is a rural-urban interface, a district planning committee with proportionate representation from municipalities and panchayats of the district should be formed.

• For the development of 23 metropolitan cities and their fringe areas, a committee for metropolitan planning should be formed. The powers of these urban bodies should be decided by state legislatures.

• The financial position of municipal bodies should be strengthened through efficient tax collection, restructuring of financial mechanisms and mobilisation of additional resources through new taxes.

• The subjects looked after by municipalities should include protection of the urban environment.