3. Creation of new units and alteration of boundaries of units: The Parliament of the Federation may by Act, with the consent of the Legislature of every Province and the Legislature of every Indian State affected thereby :
(a) create a new unit;
(b) increase the area of any unit;
(c) diminish the area of any unit;
(d) alter the boundaries of any unit;
and may with the like consent make such incidental and consequential provisions as it may deem necessary or proper.
[Note : This corresponds to s. 290 of the Act of 1935, but is wider in that it provides for the possibility of Indian State territory being included in a Province.]