Union Road Transport and Highways Minister Nitin Gadkari announced on Wednesday, 1 July 2026 that the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the construction of an 8.1 km, 6-lane tunnel on NH-148AE connecting the Dwarka Expressway (NH-248BB) with Nelson Mandela Marg, Vasant Kunj, Delhi, at a total capital cost of ₹6,969.67 crore under the Hybrid Annuity Model (HAM).

Context

Gadkari described the project as 'a transformative step towards seamless, future-ready connectivity in the National Capital Region.' The approved corridor includes five flyovers — among them one elevated U-turn — and a 3.1 km twin-tube tunnel with three lanes in each tube. A key engineering highlight is the deployment of an indigenous 13.8-metre diameter Tunnel Boring Machine (TBM), continuing the government's push for domestic manufacturing in large-scale infrastructure.

The tunnel will directly link the Dwarka Expressway to South Delhi, and further connect to the Outer Ring Road and Mehrauli–Badarpur Road via the Mahipalpur–Mehrauri corridor. It is also designed to divert traffic bound for Noida, Faridabad, Ghaziabad, and parts of East Delhi.

Policy Backdrop

The project sits within the broader Bharatmala Pariyojana, approved in 2015, which targets development of 34,800 km of national highways including urban expressways. The Hybrid Annuity Model, introduced in 2016, splits project funding between government grants and private-sector annuity payments, reducing upfront fiscal burden while attracting private investment.

The clearance also aligns with the PM Gati Shakti National Master Plan, launched in 2021, which mandates multimodal infrastructure planning and inter-ministerial coordination. The National Highways Authority of India (NHAI) has progressively introduced large-diameter indigenous TBMs in highway projects since 2020, and this project extends that trend to one of the country's most congested urban corridors.

Stakeholders and Impact

Daily commuters on the Dwarka Expressway — one of Delhi-NCR's busiest arterial routes — stand to benefit most directly. The corridor serves millions of residents across Dwarka, Gurugram, and South Delhi, and chronic bottlenecks at the expressway's northern terminus have long been a pain point for highway users.

By channelling through-traffic headed to Noida, Faridabad, and Ghaziabad away from surface roads, the tunnel is expected to reduce congestion across multiple arterial corridors simultaneously. Residents of Vasant Kunj, Mahipalpur, and Mehrauli neighbourhoods are likely to see measurable improvements in local traffic flow once the project is operational.

What's Next

The immediate steps will involve NHAI initiating the tendering process under the Hybrid Annuity Model, followed by land acquisition and mobilisation of the TBM. Integration with the Mahipalpur–Mehrauli corridor and any linked Outer Ring Road upgrades will be closely watched as detailed project reports are finalised.

If executed on schedule, the project would represent one of the largest urban tunnel investments in Delhi's road infrastructure history, reinforcing the central government's strategy of deploying grade-separated corridors to future-proof the capital's highway network.