By Katya Naidu and Esha Dalal, CNBC-TV18

The estimated cost of Mumbai's much-awaited Bandra-Worli Sea Link is Rs 1,640 crore versus the original budget of Rs 480 crore. The Maharashtra government has found a novel way to manage the cost escalation.

It's touted to be the next big landmark in Mumbai after the Gateway of India. And not surprisingly so, considering that it's taken nearly a decade to complete just 78% of the Bandra-Worli Sea Link Road. These ten years have seen the design and alignment of this bridge, changing by almost 75% and its costs rising four-fold. That escalation in costs has made the government put the second phase of the project on a fast track.

The second phase involves connecting Worli to Haji Ali via a sea link similar to the Worli-Bandra Sea Link. This is a three-kilometer long project for which the government is hoping to get close to Rs 3,000 crore. That includes an upfront payment of Rs 1,600 crore. That is because the bidding for the construction of second phase will come with a 30-year lease to manage the toll of the entire stretch. Bidding for this project is expected to open in December, just a month before the Bandra-Worli Sea Link is operationalised.