It interacts directly with the state government, though it is administratively part of the district it is located in.
Generally, smaller district cities and bigger towns have a Nagar Palika.
Nagar Palikas are also a form of local self-government entrusted with some duties and responsibilities, as enshrined in the Constitutional (74th Amendment) Act, 1993.
The 74th amendment made the provisions relating to urban local governments (nagar palikas).
The specific population thresholds are defined by the respective state governments through their municipal acts or legislation.