Article 3 Formation of new states and alteration of areas, boundaries or names of existing States-
Parliament may by law -

Form a new state by internal re-adjustment;
Increase the size of any state
Diminish the area of any state
Alter the boundaries of any state
Alter the name of any state

Basically, Article 3 deals with internal re-adjustment. Article 3 empowers the Parliament to form a new state or change the boundaries of any state or change the state's name. Nevertheless, Parliament has to follow specific procedures in this regard.
Sources:
1. Indian Polity by M Laxmikanth
2. Indian Constitution at Work NCERT
3. Introduction to the Constitution of India DD Basu
4. The Hindu Newspaper

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