Step 1: Understanding the question.
The City Master Plan in India is a document that outlines the framework for urban planning and development in cities. It is formulated by the relevant authority responsible for urban planning.
Step 2: Analyzing the options.
(A) Ministry of Urban Development: This is incorrect because the Ministry of Urban Development plays a significant role in urban policies, but it is not the primary authority responsible for the City Master Plan.
(B) Ministry of Housing and Urban Poverty Alleviation: Correct — This is the correct authority responsible for the preparation of City Master Plans in India.
(C) State Town Planning Department: This department deals with the implementation of urban planning, but the creation of the master plan is led by the Ministry.
(D) Planning Commission of India: This is not correct as the Planning Commission does not directly deal with the creation of City Master Plans.
Step 3: Conclusion.
The correct answer is (B) Ministry of Housing and Urban Poverty Alleviation, as it is the primary authority responsible for preparing the City Master Plan in India.