(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, be 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;
