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In line with Lal Bahadur Shastri's foresight, in 1969, and as a part of Gandhi Centenary Program, Mahatma Gandhi Institute of Medical Sciences (MGIMS) was proposed to be set up on the soil of Sevagram. After the approval of the Planning Commission and with the blessings of the President and the Prime Minister of the country the institute was formed. It was decided that the Government of India, Maharashtra Government and the Kasturba Health society would share the expenditure on it in the proportion of 50:25:25.

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