₹6,970 Crore Vasant Kunj Tunnel Project. Delhi's Biggest Connectivity Upgrade Could Transform Chattarpur & South Delhi Real Estate
- A D Infra
- Jul 11
- 3 min read
July 2026: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved the construction of a 6-lane road tunnel on NH-148AE, connecting the Dwarka Expressway (NH-248BB) with Nelson Mandela Marg, Vasant Kunj. The project will be developed by the National Highways Authority of India (NHAI) under the Hybrid Annuity Mode (HAM) at an estimated cost of ₹6,969.67 crore.
The proposed corridor will have a total length of 8.1 kilometres and is designed to improve connectivity between West Delhi and South Delhi. Once completed, it is expected to provide faster travel for commuters travelling between Dwarka, Gurugram, IGI Airport, West Delhi and South Delhi, while reducing congestion at key traffic bottlenecks around Mahipalpur.
A major highlight of the project is a 3.14-kilometre twin-tube tunnel, which will pass beneath the Southern Ridge using Tunnel Boring Machine (TBM) technology. Approximately 1.98 kilometres of the tunnel alignment will run below the Ridge, helping preserve the environmentally sensitive forest area while minimizing surface disruption.
According to the approved project plan, the tunnel will begin at the Shiv Murti Interchange and terminate near the junction of Nelson Mandela Marg and Mahipalpur–Chhatarpur Road. To improve traffic flow at this intersection, the project also includes a 1.8-kilometre elevated road along Nelson Mandela Marg, an additional flyover for vehicles travelling from Chhatarpur towards Mahipalpur, and an elevated U-turn to facilitate smoother right-turn movements.
The main carriageway will span approximately 6.3 kilometres. Including the tunnel, approach ramps, retaining wall approaches, elevated sections and at-grade road, the total project length will be 8.1 kilometres. The alignment comprises 3.140 km of tunnel, 0.980 km of tunnel approach ramp, 0.554 km of retaining wall approach, 2.556 km of elevated corridor, and 0.870 km of at-grade roadway.
As part of Delhi's broader infrastructure expansion, NHAI has also proposed an elevated corridor between AIIMS and Mahipalpur. Once developed, this corridor is expected to connect with the Barapullah Elevated Road, creating a continuous link between West Delhi, South Delhi, East Delhi, Ghaziabad and Noida, further strengthening regional connectivity.
The government estimates that the construction of the project will generate substantial employment. Based on national highway development benchmarks, the corridor is expected to create approximately 7.54 lakh person-days of direct employment and 9.80 lakh person-days of indirect employment, while also supporting additional economic activity in the surrounding region during and after construction.
Potential Impact on Real Estate in Chattarpur, Vasant Kunj and Nearby Areas
Although the project is primarily a transportation initiative, improved road connectivity has historically played an important role in shaping real estate demand across Delhi-NCR. The proposed tunnel is expected to improve accessibility between Vasant Kunj, Chhatarpur, Mehrauli, Satbari and surrounding South Delhi localities, making travel towards Dwarka Expressway, Gurugram and IGI Airport more convenient.
Enhanced connectivity can increase the attractiveness of residential and commercial areas by reducing travel time and improving access to employment hubs. As a result, real estate markets in Chhatarpur, Vasant Kunj and nearby locations may witness increased buyer interest over the long term, subject to overall market conditions and successful completion of the project.
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