Chief Minister Sheila Dikshit had been demanding to bring the MCD under the control of the Delhi government as the corporations was not answerable in the matter of improving civic amenities.
Home Ministry sources said a presentation on the proposal was made at the ministry last week and Delhi government has been asked to respond to the note.
The new proposal, which the Delhi government is supposed to respond to, covers almost all the sections of the MCD Act, including general maintenance.
Dikshit confirmed that her government had received the note but claimed she had not looked at it yet.
"(It is) Control so that co-ordination is better. I have not looked at the note yet. It was received by the department on Saturday. All of us will take a look at it together in the Delhi Cabinet meeting on Monday. It is not to take away the powers of any elected representative," she said.