The construction of the 17.17km VBSL bridge is expected to involve an investment of nearly Rs75bn ($1.16bn).
The State Cabinet Committee on Infrastructure (SCCI) had cleared the project in 2009, reported PTI.
In 2013, the project procured Coastal Regulation Zone (CRZ) and environment clearance from the union government.
Said to be an extension of the existing Bandra-Worli Sea Link, the new sea-link bridge is expected to reduce traffic congestion by connecting the southern part of Mumbai with the western suburbs by a series of roads and tunnels.
The government approved the design plan at a height of 900m from the coastline, while the main four-by-four lane bridge of VBSL will be 9.60km long.
In addition to the main bridge, the project will have several connectors at Bandra, Otters Club, Juhu Link Road and Versova Link Road.
It will also have multiple toll plazas at Bandra, Carter Road, Juhu-Koliwada and at Nana-Nani Park.
The concession period of the existing tolls shall be up to 2052. However, it may change with any future changes in the toll tax policy.
The government announcement also allowed Maharashtra State Road Development to appoint two separate contractors; one will be responsible for toll collection while the other will be in charge of maintenance of the VBSL bridge.