Union Territories & Panchayats
(1) Parliament may by law create, for the Union territory of Puducherry, an elected/partly-nominated body to function as a Legislature, a Council of Ministers, or both, with whatever powers the law specifies. (2) Such a law is not deemed a constitutional amendment for Article 368 purposes, even if it effectively amends the Constitution.
This lets Parliament give a specific Union Territory (Puducherry) something closer to state-like self-government - its own elected Legislature and Council of Ministers - through an ordinary law, without needing the more elaborate constitutional amendment process.
This is why Puducherry, unlike most other Union Territories, has its own elected Legislative Assembly and Chief Minister-led government, giving it a degree of self-governance closer to a small state than a typical centrally-administered territory.