Mumbai Metropolitan Region Development Authority (MMRDA) has secured a ₹7,326-crore loan for the construction of Orange Gate underground tunnel. Spanning 9.2 kilometres, it will connect Orange Gate on the Eastern Freeway to Marine Drive coastal road. The design includes a 6.52-kilometre dual-tunnel system with a dedicated emergency lane, aimed at enhancing east-west connectivity and providing a ring route for South Mumbai. The tunnel is set to be constructed approximately 40 meters below ground level.

This project will be Mumbai's first urban tunnel, running beneath public transport routes, including railways, Metro lines, and major city roads.

On Wednesday, the Commissioner of MMRDA, formalised the loan agreement, with Union Bank of India providing the financial backing to ensure the project’s timely delivery.

The tunnel will offer an uninterrupted traffic flow, linking South Mumbai’s eastern and western coasts through the Eastern Freeway, Mumbai Trans Harbour Sea Link (MTHL), Coastal Road, and Bandra-Worli Sea Link. The primary goal of this infrastructure project is to ease traffic congestion around Orange Gate, a long-standing issue for both Mumbai Port Trust and Main Post Office Square on PD Mello Marg. 

Currently, work is underway on the launching shaft, with tunnel boring machines expected to be deployed soon, according to an MMRDA official.