Union Health Minister and BJP national president J. P. Nadda on Wednesday, 1 July 2026 welcomed the Union Cabinet's approval of a 6-lane road tunnel on NH-148AE, linking the Dwarka Expressway (NH-248BB) to Nelson Mandela Marg, Vasant Kunj, New Delhi — at an estimated cost of ₹6,969.67 crore and a total length of 8.1 kilometres.

Context

Nadda posted on X crediting the decision to Prime Minister Narendra Modi's leadership, saying the cabinet had granted approval under the NH(O) scheme using the Hybrid Annuity Model (HAM). Translated from Hindi, his post reads: 'The Union Cabinet, under the leadership of the respected Prime Minister Shri Narendra Modi ji, has today approved the construction of a 6-lane road tunnel on NH-148AE connecting Dwarka Expressway (NH-248BB) to Nelson Mandela Marg, Vasant Kunj, Delhi, under the NH(O) scheme on Hybrid Annuity Mode.'

Nadda extended congratulations to all residents of Delhi and expressed gratitude to PM Modi for what he described as a decision that will give 'new momentum and a modern character' to the national capital's urban transport system.

Policy Backdrop

The Hybrid Annuity Model, introduced in 2016, blends government and private funding — with the government contributing roughly 40 per cent of project cost during construction and the private concessionaire recovering the balance through annuity payments over the concession period. It was designed to revive stalled highway public-private partnership projects by reducing upfront risk for developers.

The tunnel falls under the broader Bharatmala Pariyojana, launched in 2015, which targets national highway development including urban expressways and grade-separated corridors. The NH(O) — National Highways (Other) — category covers urban connectivity projects within city limits, making this tunnel eligible for central funding despite being within Delhi.

The Dwarka Expressway itself is an 8-lane access-controlled corridor connecting Delhi with Gurugram in Haryana and serving as a key feeder route to Indira Gandhi International Airport. The new tunnel is intended to extend seamless connectivity from this corridor into south Delhi via Vasant Kunj.

Stakeholders and Impact

According to Nadda's post, the tunnel will benefit 'lakhs of commuters' travelling between west Delhi and south Delhi, as well as passengers heading to and from Indira Gandhi International Airport and residents of Gurugram and Dwarka. The project promises 'seamless, faster and safer travel' along one of the NCR's most congested arterial routes.

Urban planners and commuters in the National Capital Region have long flagged the missing link between the Dwarka Expressway terminus and the south Delhi road network as a bottleneck, particularly for airport-bound traffic that currently must navigate surface roads through Vasant Kunj and Mahipalpur.

What's Next

The National Highways Authority of India (NHAI) will be expected to initiate tendering under the HAM framework, followed by land acquisition and environmental clearances specific to the tunnel alignment. Observers will watch whether the project is integrated with planned metro extensions or the Regional Rapid Transit System (RRTS) links proposed for southwest Delhi. Timely execution will be critical, given the corridor's role in airport connectivity ahead of major international events on India's calendar.