Section 7. The Governor may, for the purpose of application of the provisions of this Act,

classify any municipal area on the basis of the population as ascertained at the
last preceding census of which the relevant figures have been published, as-

a) a urban area of-
Class 'A municipal area having population above 75,000 or
Class 'B' municipal area having population above 30,000 but not
exceeding 75,000 or Class 'C' municipal area having population above
20,000, but not exceeding 30,000 , and
b) Nagar Panchayat having population not exceeding 20,000 :

Provided that for the purpose of classification of municipal area in any hill
area, pilgrim centr e, tourist centre of mandi town, the Govern or may, by
notification, determine separate size of population for each class of such
municipal areas'