During the year 1979, State Development Authorities/ Town Improvement Trusts/ Special Area Development Authorities/ and M.P. Housing Board of the State jointly constituted an Association in the name of Madhya Pradesh Vikas Pradhikaran Sangh.  The main objective of this Association was aimed at providing assistance to the above agencies after realization of prescribed fee from the Member Organizations.

After 73rd and 74th amendment of Indian Constitution in the year 1994, after disorganization of all Town Improvement Trusts and most of the Special Area Development Authorities, there was an abrupt reduction in the sources of income of the Association which created difficulties in the conduct of business of this Association.  In order to dispel the difficult situation faced by the Association, the State Government made suitable arrangements to strengthen its financial status through grant of Funds of the Integrated Development of Small and Medium Towns (IDSMT) Scheme of Government of India and made Vikas Pradhikaran Sangh as a Nodal Agency to run this Scheme.  In the year 2005, the said Scheme was merged with Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) and its subsequent handing over to Urban Administration and Development Department, created further difficulties in its conduct of business which resulted to change its name and function as ‘State Institute for Town Planning’.

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