The Mumbai Metropolitan Region Development Authority has sought Coastal Regulation Zone clearance from the State Coastal Zone Management Authority for the proposed Rs 51,409.2 million (Rs 51.41 bn) Thane Coastal Road Phase II, a key infrastructure scheme that passes through environmentally sensitive coastal areas including mangroves and the Eco-Sensitive Zone of the Thane Creek Flamingo Sanctuary. The authority has filed a fresh application under the CRZ Notification, 2019, saying the proposed seven point one three km alignment traverses multiple CRZ categories, including CRZ-IA, CRZ-IB, CRZ-II and CRZ-IVB. Documents lodged by the authority indicate the project qualifies under provisions that allow public infrastructure projects such as coastal roads subject to environmental safeguards and statutory approvals.

The proposal indicates the project will affect around 12.72 hectares of mangroves, with approximately 1,733 mangrove trees proposed for removal, and states that an application for forest clearance is under way. A compensatory afforestation plan will be submitted as part of the approval process and mitigation measures have been outlined in project filings. The authority has signalled that statutory safeguards will be followed to address ecological impacts.

Environmental assessments underlined the project's proximity to protected ecosystems, noting a portion of the alignment falls within the Eco-Sensitive Zone of the Thane Creek Flamingo Sanctuary located about 700 metres from the proposed road. The Eco-Sensitive Zone of the Sanjay Gandhi National Park is around two point six km away and the Tungareshwar Wildlife Sanctuary lies within an eight km radius of the scheme. Terrestrial and marine environmental impact assessment studies were carried out between December 2025 and February 2026 and a disaster management plan together with coastal zone maps detailing the alignment have been submitted.

The proposed six-lane freeway will connect Balkum and Kasheli with Anand Nagar in Mulund East and is intended to provide a bypass for regional traffic passing through Thane, easing congestion on the Eastern Express Highway and Ghodbunder Road by diverting non-local vehicles. The authority says the road should reduce travel time, road accidents, vehicular emissions and operating costs for freight and passenger traffic. CRZ clearance is among the key statutory approvals required before construction can begin and the scheme is expected to strengthen regional connectivity by linking Thane more efficiently with Mumbai and the wider Mumbai Metropolitan Region.