Maharashtra: Alibaug–Virar Multi-Modal Corridor Project Awaits GR To Initiate BOT Tender Process

Mumbai: The much awaited Alibaug–Virar Multi-Modal Corridor project remains on hold as the Maharashtra State Road Development Corporation (MSRDC) awaits a formal government resolution (GR) to initiate tendering under the Build-Operate-Transfer (BOT) model.

An MSRDC official confirmed that while the state government has approved execution through the BOT framework, the official GR which possibly will be issued in next a few days will initiate the bidding process.

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Earlier in May, The Free Press Journal reported first that the decision to shift to the BOT model was prompted by unexpectedly high bid amounts—36% above the estimated project cost—during previous tender attempts.

About The Corridor

The planned corridor, designed as an outer ring road with a metro component, will traverse Palghar, Thane, and Raigad districts. Initially, it will span over 98 km up to Pen, with a potential extension to 128 km reaching Alibaug depending on future requirements.

For the project, 1,300 hectares of land are needed, with compensation alone estimated at Rs 22,250 crore. Construction costs are projected at around Rs 20,000 crore. Land surveys are already complete, and with funds from HUDCO secured, compensation disbursement is expected to follow soon, said the official. The total project cost is pegged at Rz 61,000 crore approximately. 

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First envisioned under the Mumbai Metropolitan Region Development Authority (MMRDA) and detailed in a 2016 detailed project report (DPR), the project has faced repeated delays due to land acquisition hurdles. It was later transferred to MSRDC for execution as MMRDA and MSRDC swapped projects with MMRDA carrying out Thane Borivali Twin Tunnel project in lieu.

Authorities view the Alibaug–Virar corridor as a critical infrastructure link that could ease congestion in Mumbai while fostering economic activity across the wider metropolitan region.