India's financial capital Mumbai will not be listed in the last batch of Smart Cities, which will be unveiled by Urban Development Minister M Venkaiah Naidu on Friday. Mumbai is the second city to withdraw on political grounds, after New Town Kolkata, following West Bengal Chief Minister Mamata Banerjee's decision to create 'Green Cities'.

BMC Commissioner Ajoy Mehta informed M Venkaiah Naidu of Mumbai's decision to withdraw from the Smart Cities mission, while the latter was in Mumbai for a review of urban projects this June. Furthermore, a spokesperson from the Urban Development Ministry confirmed not receiving any proposal from Mumbai.

According to Indian Express, BMC's reservations regarding the Smart City mission's guidelines is believed to be the reason behind the withdrawal. The Shiv Sena-led civic body feels these guidelines may weaken the municipal body's hold on the mission.

A conditional proposal to allocate a majority of the funding for the mission to the business district of Lower Parel-Mahalaxmi was submitted by Mumbai in the competition's last round.