Alternative North-South Corridor Gets Green Signal to Ease Mumbai Region Traffic
The Maharashtra government has approved the long-awaited Bhayandar-Ghodbunder connectivity project, paving the way for a major transport corridor aimed at improving travel across the Mumbai Metropolitan Region. Estimated to cost ₹17,036.03 crore, the ambitious infrastructure project will feature an elevated creek bridge and a twin-tube underground tunnel connecting Bhayandar with Gaimukh via Fountain Hotel Junction.
The Mumbai Metropolitan Region Development Authority (MMRDA) will implement the 15.44-km project under a Build-Operate-Transfer (BOT) model through a Public-Private Partnership (PPP). The approval was formalised through a government resolution issued by the Urban Development Department on June 22, following clearance from the Cabinet Infrastructure Committee.
Bridge and Tunnel to Transform Regional Connectivity
The project has been designed to create a faster north-south transport route while reducing pressure on the heavily congested Western Express Highway.
According to the approved plan:
- A 9.58-km six-lane elevated creek bridge will connect Bhayandar to Fountain Hotel Junction.
- A 5.86-km twin-tube underground tunnel, featuring three lanes in each direction, will extend from Fountain Hotel Junction to Gaimukh.
Officials believe the new corridor will significantly improve connectivity between the western suburbs and the Thane region while cutting travel time for daily commuters.
Project Revived After Extended Legal Battle
The approval marks a fresh start for a project that had been stalled after MMRDA cancelled its earlier tender process nearly two years ago. Engineering giant Larsen & Toubro (L&T) challenged the cancellation before the Bombay High Court and later the Supreme Court.
Both courts upheld MMRDA’s decision, allowing the authority to move ahead with a fresh bidding process for the elevated road and twin tunnel project.
Earlier, MMRDA had reportedly sought additional documents from L&T to validate its financial bid after the company quoted a price substantially lower than the qualifying bidder. The required information was allegedly not submitted, prompting the authority to scrap the tender and restart the process.
Cost Rationalisation Efforts See Limited Impact
When the matter reached the Supreme Court in May last year, MMRDA informed the court that it planned to retender the project while exploring options to reduce the base cost by nearly ₹3,000 crore to ensure efficient utilisation of public funds.
However, the latest government approval pegs the project cost at ₹17,036.03 crore, broadly aligning with and, in some instances, exceeding estimates considered during the earlier tender process despite the cost-cutting exercise.
Funding Structure and Additional Expenses
The project will receive 40% viability gap funding (VGF), with the Central Government and Maharashtra Government contributing 20% each. The remaining investment will be arranged by the selected private concessionaire through private capital and debt financing.
In addition to the construction cost, approximately ₹713.94 crore has been earmarked for land acquisition, rehabilitation measures and environmental management. The Maharashtra government has already approved its VGF contribution of around ₹3,407 crore and authorised MMRDA to seek the Centre’s share of financial assistance.
Major Boost for Mumbai Metropolitan Infrastructure
Once completed, the Bhayandar-Ghodbunder connectivity project is expected to become a key transport link in the Mumbai Metropolitan Region, providing an alternative traffic corridor, easing congestion on existing highways and supporting future urban expansion across Mumbai, Thane and neighbouring areas.


