Panchayat union is formed by grouping of villages.

d) A is correct, R is correct explanation of A

(i) Urban local governments are Corporation, Municipality and Town Panchayat
(ii) The area where more than 10,000 people are living is called a Town Panchayat
(iii) Municipalities were constituted in India for the first time in Chennai in 1688
(iv) Municipal Corporation are established in big cities.

The salient features of the Tamil Nadu Panchayat Raj Act of 1994-
(i) A three tier system,
(ii) Gram Sabha
(iii) Establishment of Election Commission
(iv) Constitution of Finance Commission
(v) Reservation of Seats for SS/ST's proportionate to their population.
(vi) One third reservation of seats for women and
(vii) Constitution of District Planning Committees.

In Tamil Nadu there are 12 Corporations. They are,
a) Chennai
b) Kovai
c) Madurai
d) Trichy
e) Tirunelveli
f) Salem
g) Erode
h) Vellore
i) Tuticorin
j) Tirupur
k) Tanjore
l) Dindigul.

Problems and challenges facing the local self governments.
(i) Local self governments are the crucial basis for our democracy.
(ii) The Constitutional status of local self governments adds more significance to their functioning.
(iii) There are a few critical concerns in the working of local self governments in India.
(iv) Major problems and challenges may be mentioned as below.
1. Lack of clear demarcation of powers and functions of local bodies.
2. Allocation of funds and needs assessment are not matched.
3. Combined with accountability, the local self governments demand for more autonomy and economic freedom may be addressed.
4. Role of caste, class and religion in decision making at the local self governments.
5. Poor accountability of elected members and officials at the grassroots of democracy.