Formulation of new States and alteration of areas, names or boundaries of existing States was provided in Article 3 of the Constitution of India. The expression “States” in Article 3 meant Part- A, B & C States before the 1956 Constitution (Seventh Amendment) Act, 1956. The concept of “Union Territories” was introduced through the Seventh Amendment, however, Article 3 was not amended to include in terms “Union Territories”.
It was proposed to amend Article 3 to make it clear that "State" in clauses (a) to (e) (but not in the proviso) includes "Union territories". Also, to make it clear that power under clause (a) includes the power to form a new State or Union territory by uniting a part of a State or Union territory to another State or Union territory. This Bill was introduced to achieve the above-mentioned objects.
The Amendment included: -
The inclusion of the term “Union Territories” in the expression “State” in Article 3 of the Constitution of India facilitated the re-organisation of States and Union Territories by Parliament as and when necessary. The Amendment undertook to facilitate the re-organisation of the State of Punjab and the Union Territory of Himachal Pradesh.