Cabinet Approves ₹7,000 Crore Tunnel to Link Dwarka Expressway with South Delhi
New Delhi, July 1, 2026 — The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the construction of an 8.1-kilometre, six-lane road tunnel connecting the Dwarka Expressway with Nelson Mandela Marg in Vasant Kunj. The project, estimated to cost ₹6,969.67 crore, is intended to reduce travel time between west and south Delhi while easing congestion around the Indira Gandhi International (IGI) Airport.
Approved by the Cabinet Committee on Economic Affairs, the corridor will be developed by the National Highways Authority of India (NHAI) under the Hybrid Annuity Model. The six-lane road will link the Dwarka Expressway and Urban Extension Road-II with Nelson Mandela Marg, providing a direct route for vehicles from Gurugram, Dwarka, the airport, and west Delhi towards south Delhi.
To minimise environmental impact, the project includes a 3.14-kilometre twin-tube tunnel beneath the southern Ridge, built using Tunnel Boring Machine technology. Approximately 1.98 kilometres of the tunnel runs under the Ridge, an ecologically sensitive forest area, thereby preserving the ecosystem and avoiding major surface disruption. The tunnel will start at the Shiv Murti interchange and emerge before the junction of Nelson Mandela Marg and Mahipalpur-Chhatarpur Road.
The plan also addresses congestion at the busy Nelson Mandela Marg junction with a 1.8-kilometre elevated corridor, an additional flyover from Chhatarpur towards Mahipalpur, and an elevated U-turn to facilitate smoother traffic flow. The total project length of 8.1 kilometres includes 6.3 kilometres of main carriageway, 3.14 kilometres of tunnel, 980 metres of tunnel approach ramps, 554 metres of reinforced earth wall approaches, 2.556 kilometres of elevated corridor, and 870 metres of at-grade road.
The government stated that the tunnel will complement NHAI’s proposed elevated corridor between AIIMS and Mahipalpur, which will connect with the Barapullah elevated road. Once completed, the combined network is expected to improve connectivity between west, south, and east Delhi, while also providing seamless access to Ghaziabad and Noida.