In July 1992, Government appointed the MMRDA as a Special Planning Authority for the then Kalyan Complex Notified Area, after excluding the area within the Kalyan-Dombivali Municipal Corporation limits. In March 2001, Government changed the name of the Notified Area as “Ulhasnagar, Ambernath, Kulgaon-Badlapur and Surrounding Notified Area”. In February 2005, Government excluded the Ulhasnagar Muncipal Corporation Area from the Notified Area and changed the name of the Notified Area as “Ambernath, Kulgaon-Badlapur and Surrounding Notified Area”. The newly designated area admeasuring about 225 sq.km. includes two Municipal Councils namely, Ambarnath and Kulgaon-Badlapur and fifty six village settlements.

Owing to its proximity to Mumbai and large scale industrialization, this area has experienced rapid urban growth. Considering the need for improving transportation network in this area, the MMRDA carried out through an external Consultant a study on 'Traffic and Transportation Problems' of the area. Based on the existing land use survey and the aforesaid traffic and transportation study, the MMRDA has formulated proposals for the Development Plan of the area.

The draft Development Plan was published in 2001 for inviting public suggestions and objections. In all 3436 objections and suggestions on the draft Development Plan were received. As a part of the procedure for the preparation of Development Plan under the MR&TP Act 1966, the MMRD Authority under section 28(2) of the Act constituted a Planning Committee.

The Committee considered the representations made by the interested persons. Based on the evaluation of the factors, the Committee submitted to the MMRDA the report alongwith its recommendations for modifications to the Authority. After the approval of the Authority in 2003, the final report on the draft Development Plan with maps and the objections/suggestions received on the plan was submitted to the Government for approval. Now the Government by its Notification dated July 25, 2005 has approved the Development Plan.