Shinde was speaking after inaugurating the last wing of Kapurbawdi flyover in the city. The flyover has been built at a cost of Rs 178 crore.
Shinde said the tunnel would be constructed between Tikuniji Wadi and the Sanjay Gandhi National Park, reducing the travel time to just eight minutes (from the current half-an-hour).
Thane and Borivali in north Mumbai are separated by a chain of hills, most of which are a part of the national park.
Further, elevated road had been planned along the Godhbunder road at a cost of Rs 518 crore, he said.