The 74^th constitutional amendment act which came into effect in 1993 can be explained as its provisions as below. The state government can conduct the elections. It ensures a firm relation between state government and urban local bodies with regards to taxation powers and revenue sharing. 

• It provides adequate reservation facilities to SG, ST, Backward class and women. 
• The state government has power to legislate about reservation in urban local bodies. 
• The members should elect directly by the residents who are living in urban area. 
• The tenure of the urban local bodies in 5 years. 
• Elections shall be held within 6 months from the date of dissolution. 
• Members of parliament and assembly are the ex-officio members of urban local bodies. 
• The state government can nominate 5 members to the urban local bodies. 
• The state government has power to prepare plan for economic and social development. 
• State finance commission has been established to review the finances of urban local bodies.