The Maharashtra government on Thursday, May 7, gave approval for an increase of INR 2,524 crore in the cost of the Virar–Alibaug Multimodal Corridor. The total project cost now stands at INR 31,793 crore. The Maharashtra State Road Development Corporation (MSRDC) will execute the 126.06-kilometre project, and it will complete by the end of 2029.
The corridor will improve connectivity across the Mumbai Metropolitan Region and will link to:
* Jawaharlal Nehru Port Authority
* Navi Mumbai International Airport
* Mumbai Trans Harbour Link.
* NH-48 (Mumbai-Ahmedabad)
* NH-848 (Mumbai-Agra)
* NH-61 (Kalyan-Murbad-Nirmal)
* Mumbai-Vadodara Expressway
* Mumbai-Pune Expressway
* NH-66 (Mumbai-Goa Highway)
The project is expected to reduce travel time by around 90 minutes. A total of nine interchanges are planned along the route. It will pass through 104 villages across the talukas of Vasai, Bhiwandi, Kalyan, Ambernath, Panvel, Uran, Pen, and Alibaug. The first phase of construction will cover a 96.41-kilometre stretch. This section will run from Mauje Navghar in Vasai on NH-48 to Mauje Balavali in Pen on NH-66.
The project was originally planned by the Mumbai Metropolitan Region Development Authority. In August 2020, the state government reassigned the project to the Maharashtra State Road Development Corporation. In exchange, the Thane-Borivali twin tunnel project was given to the MMRDA.
The MSRDC has been appointed as the implementing agency. It will execute the project under a public-private partnership model. The project will follow the Design, Build, Finance, Operate, and Transfer format. The approval follows decisions taken during the Cabinet Infrastructure Committee meeting held on March 11.
The government resolution provides a detailed cost structure as follows:
* INR 21,533 crore for construction
* INR 2,524.84 crore for cost escalation
* INR 4,330 crore towards GST on construction
* INR 2,268 crore as interest during construction.
* INR 31,793 Total
Earlier, in June 2025, the Cabinet had approved INR 14,763 crore for interest obligations and INR 22,250 crore for land acquisition. This had taken the total Phase 1 cost to INR 37,013 crore. The state government has also approved viability gap funding of INR 6,259.32 crore. This amounts to 19.80 per cent of the project cost. The funding is based on an estimated toll of INR 765 for cars and jeeps and a concession period of 40 years.
The proposal will now be sent to the Public-Private Partnership Appraisal Committee of the central government for review and approval. Toll collection on the corridor will be fully automated. It will use FASTag, GPS, and other advanced systems. Charges will be based on the actual distance travelled through the nine interchanges.
The state has set a construction period of three years for the project. It has also directed that the common section at Mote Karanjade, which overlaps with the National Highways Authority of India’s VME Spur project, should be completed within one and a half years.
Officials said that land acquisition is currently in progress and is expected to be completed soon. The tendering process is likely to begin by the monsoon. A three-member committee will monitor the project. It will include representatives from the planning, finance, and roads and buildings departments.
Share
Tweet
