The 1.6-km-long flyover from near St Stephen's Hospital to Filmistaan Cinema, was originally scheduled to be completed by 2010, but has missed several deadlines.
Agarwal, who took charge as NDMC Mayor on May 18, inspected the progress of the construction accompanied by the area councillor and other senior officials.
"The work should be completed by October 2017. This would be a Diwali gift to the citizens by the corporation. It would be opened for vehicular movement towards ISBT, Kashmiri Gate, Mori Gate.
She inspected work at casting yard at Tees Hazari and Barafkhana where parts of the separator are being made. She directed the Engineering Department to ensure quality of construction material and asked deploy more workers for speedy completion of the project.
While inspecting the Pul Bangash area, she sought information about the parts of the grade separator which are to be constructed by the railways.