The bypass would provide relief to the commuters who regularly head to Faridabad through Ashram, reducing the travel time.
The project had already got Delhi Lieutenant-Governor Najeeb Jung's approval.
However, a major hurdle which remains to be resolved is acquisition of land as almost 10 km of the total 14-km stretch falls under the Uttar Pradesh Irrigation Department, said a Public Works department (PWD) official.
The two governments have to discuss the matter to sort it out, he said, adding that the project was supposed to be flagged off in May 2003.
The estimated cost of the project is Rs 200 crore and will be completed in two phases.
The stretch from Maharani Bagh to Kalindi Kunj will be built in the first phase, and the remaining stretch from Kalindi Kunj to Faridabad will be constructed in the second phase, the official added.