The cost of construction of the south phase (9.98 km-long) of the coastal road has shot up to Rs 12,721 crore, the Brihanmumbai Municipal Corporation (BMC) has said. The cost has shot up by 150% from last year's estimation of Rs 5,000 crore. However, the standing committee — the statutory committee that takes financial decisions in the BMC — approved the construction proposal on Tuesday with both the Shiv Sena and Bharatiya Janata Party staking claim to the project.

As the project has been in the planning stage for over 10 years, its first Detailed Project Report (DPR) that had a complete environmental impact assessment report, was drafted in 2015. After several peer reviews on the DPR and many changes eventually, the project was not only delayed, but its cost also rose, revealed sources. The fuel and steel price, and international insurance were also some of the reasons why the cost soared to Rs 12,721 crore since last year.