It was established in 1973 under Madhya Pradesh Town and Country Planning Act, 1973.

The proposals related to development of residential schemes, new links in the present transportation network etc.

The provision for the physical connection of the scheme with the city, i.e. transportation facilities is taken into the account.

Provision of water supply, sewage lines and electricity plan for all is worked out in IDA.

If the private developers make plans for any institutional, residential or any other area, then they are required to be approved by IDA.