3. Declaration of intention to constitute a municipal area.
(1)The State Government may, after making such inquiry as it may deem fit, and having regard to the population of any urban area, density of population there in, the revenue generated for the local administration of such area, the percentage of employment in non-agriculture activities in such area, the economic importance of such area, and such other factors as may be prescribed, by notification, declare its intention to specify such area to be a larger urban area, or a medium urban area, or a transitional area:Provided that no such declaration shall be made unless the population(a)in the case of a larger urban area, is two lacs or more,(b)in the case of medium urban area, is forty thousand or more but is less than two lacs, and(c)in the case of a transitional area, that is a small town, is twelve thousand and more but not more than forty thousand:"Provided further that the total population of main cultivator workers and marginal cultivator workers shall be below fifty percent of total population of workers in such area in all cases" (Inserted by THE BIHAR MUNICIPAL (AMENDMENT) ACT, 2020)Explanation. - "Revenue generated for the local administration" shall not include-(a)taxes, if any, distributed to the Municipality by the State Government,(b)loans and grants from the State Government, and(c)loans and grants from the Central Government or institution or other source.(2)The State Government shall, by notification, declare an area specified as-(i)a larger urban area to be a city,(ii)a medium urban area to be a town, and(iii)a small town or transitional area to be a Nagar Panchayat or urban growth centre(3)Notwithstanding anything contained in sub-section (1), the State Government may, by notification, determine separate conditions, to constitute any hill area, pilgrim centre, tourist centre or mandi as a municipal area.
