Maharashtra Clears Rs 300 Crore for Major Underground Road Tunnels in Mumbai

Mumbai, 27th September 2025: The Maharashtra government has approved the first tranche of funding worth Rs 300 crore for two major underground road tunnel projects aimed at easing traffic congestion across the Mumbai Metropolitan Region (MMR). The projects, backed by state interest-free loans, together involve more than Rs 3,700 crore allocated to the Mumbai Metropolitan Region Development Authority (MMRDA).

According to government resolutions issued on September 26, Rs 90 crore has been sanctioned for the Orange Gate–Marine Drive tunnel in South Mumbai, while Rs 210 crore has been earmarked for the Thane–Borivli tunnel. Both amounts will be disbursed to MMRDA as interest-free loans for the fiscal year 2025-26.

The Orange Gate–Marine Drive project, estimated at Rs 1,354 crore, will feature twin three-lane underground tunnels directly connecting the Eastern Freeway to Marine Drive. Officials said the project will significantly reduce road congestion in South Mumbai. Of the total cost, Rs 307 crore is allocated for central taxes, Rs 614 crore for state taxes, and Rs 433 crore for land acquisition.

The Thane–Borivli tunnel, with a projected cost of Rs 2,417 crore, will link Mumbai’s eastern and western suburbs, providing a faster alternative to the heavily congested Ghodbunder Road. Its expenditure includes Rs 572 crore for central taxes, Rs 1,145 crore for state taxes, and Rs 700 crore for land.

Both loans are to be repaid by MMRDA in a single installment in 2050, following the clearance of external borrowings for the projects. While the loans are interest-free, the government retains the option to levy interest in the future, in which case repayments would cover both principal and interest.

A senior MMRDA official said, “These twin tunnel projects reflect the government’s commitment to long-term infrastructure development in Mumbai. By improving east-west connectivity, we aim to reduce travel time and ease chronic congestion.”

The tunnels, being excavated beneath Sanjay Gandhi National Park, will connect Ekta Nagar in Borivli to Tikuji-NiWadi in Thane, cutting the Thane–Borivli commute by 12 km and saving roughly one hour of travel time.