In March 1971, CIDCO was named the New Town Development Authority for the project. In October the same year, CIDCO undertook to prepare and publish a development plan as required by the Maharashtra Regional and Town Planning Act, 1966. The corporation started functioning as a company fully owned by the state government with initial subscribed capital of Rs. 3.95 crores from the government. It was entrusted with developing necessary social and physical infrastructure and was also entitled to recover all costs of development from the sale of land and constructed properties.