Union Territories & Panchayats
State law may endow Municipalities (and their Committees) with powers needed to function as genuine self-government institutions, including devolving responsibility for economic development/social justice planning and implementing schemes covering the 18 subjects listed in the Twelfth Schedule (like urban planning, water supply, public health, and slum improvement).
This mirrors Article 243G (Panchayat powers) for urban government: the invitation for states to devolve real governance functions - covering a broad list of urban-relevant subjects - down to the Municipality level, again phrased as something states "may" do rather than an automatic mandate.
In cities where this devolution has been meaningfully implemented, the Municipal Corporation has real authority over things like water supply, sanitation, and urban planning - core functions listed in the Twelfth Schedule this article references.