Centre and Maharashtra Approve ₹17,036 Crore Bhayandar - Ghodbunder Mega Link Project to Cut Mumbai Traffic

Elevated Bridge and Twin Tunnel Project Set to Transform North - South Travel Across Mumbai Region

In a major push to improve transport infrastructure and reduce traffic congestion across the Mumbai Metropolitan Region (MMR), the Central and Maharashtra governments have approved the ambitious ₹17,036 crore Bhayandar - Ghodbunder Connectivity Project.

The large-scale infrastructure project will feature a long elevated creek bridge along with twin underground tunnels to create a faster and smoother travel route between Bhayandar and Ghodbunder. Officials expect the project to ease pressure on the heavily crowded Western Express Highway and strengthen north - south movement across the region.

15.44 KM Connectivity Corridor to Improve Daily Commute

The approved corridor will stretch approximately 15.44 kilometers and will be developed by the Mumbai Metropolitan Region Development Authority (MMRDA).

The route includes:

• A 9.58 km six-lane elevated bridge connecting Bhayandar to Fountain Hotel Junction
• A 5.86 km twin-tube underground tunnel connecting Fountain Hotel Junction to Gaimukh
• Three traffic lanes in each direction to support higher vehicle capacity

The project is expected to create an alternative transport route and reduce travel delays for commuters moving through Mumbai’s western and northern zones.

Project to Be Developed Under Public-Private Partnership Model

The Bhayandar - Ghodbunder project will be executed through a Build-Operate-Transfer (BOT) model under a Public-Private Partnership (PPP) framework.

Following approval from the Cabinet Infrastructure Committee, Maharashtra’s Urban Development Department issued the official government resolution on June 22.

Under this structure, private developers will help finance, build, operate, and maintain the corridor, while public authorities will provide strategic funding support.

Approval Comes After Previous Tender Dispute

The project approval arrives nearly two years after MMRDA cancelled an earlier tender process that became the subject of legal proceedings.

Engineering company Larsen & Toubro (L&T) challenged the earlier bidding process before both the Bombay High Court and later the Supreme Court. However, both courts supported MMRDA’s decision.

According to earlier reports, MMRDA had requested additional documents related to L&T’s financial proposal after the company submitted a bid that was significantly lower than the qualifying bidder. After the required information was reportedly not submitted, the authority cancelled the tender and moved toward a fresh bidding process.

Cost Optimization Attempt, But Final Budget Remains Strong

Last year, MMRDA informed the Supreme Court that it planned to invite new bids and explore opportunities to reduce project costs by nearly ₹3,000 crore to ensure efficient use of public funds.

However, the final approved project value now stands at ₹17,036.03 crore, which remains close to - and in some areas exceeds - earlier estimated costs.

Despite cost adjustments, the government moved ahead with the full-scale project considering its long-term impact on regional mobility and economic growth.

Funding Structure: Centre, State and Private Investment

To support project execution, the corridor will receive 40% Viability Gap Funding (VGF).

Funding will be divided as follows:

• 20% contribution from the Central Government
• 20% contribution from the Maharashtra Government
• Remaining funding through private investment and debt financing

Additionally, approximately ₹713.94 crore has been allocated separately for:

• Land acquisition
• Rehabilitation measures
• Environmental management activities

The Maharashtra government has also approved its estimated ₹3,407 crore VGF contribution and authorized MMRDA to seek central financial support.

A Major Step Toward Faster and Smarter Mobility

The Bhayandar - Ghodbunder Connectivity Project is expected to become one of the most important road infrastructure developments in the Mumbai region. Once completed, the elevated bridge and tunnel network could significantly improve traffic movement, shorten travel times, and provide long-term relief to one of India’s busiest urban transport corridors.

With construction expected to move into the next phase, commuters and businesses alike will closely watch the progress of this transformational connectivity project.