The Sansthan was established in 15th October, 1970 as an autonomous organisation registered under the Societies Registration Act, 1860 (Act XXI of 1860) for the development and promotion of Sanskrit all over the country. It is fully funded by Government of India. It functions as an apex body for propagation and development of Sanskrit and assists the Ministry of Human Resource Development in formulating and implementing various plans and schemes for the development of Sanskrit studies. It has assumed the role of a nodal body for the effective implementation of various recommendations made by the Sanskrit Commission set up by the Government of India, Ministry of Education in 1956 to consider the propagation and development of Sanskrit language and education in all its aspects.

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