The contract forms one of the three packages within the first phase of the highway.
Construction on the first phase is scheduled to be completed in the next four years.
The full highway will stretch from Marine Drive in the south to Kandivili in the north of Mumbai.
It comprises of tunnels, roads on reclaimed land, roads on stilts and bridges with interchanges planned at strategic locations for dispersal of traffic.
The new road is expected to cut down travel time by as much as 60%. There will also be a dedicated bus rapid transit systems (BRTS) lane on the highway which will improve public transport in the city.
Mumbai already has an elevated highway on the eastern front, stretching from Fort to Chembur, that has cut travel time by 60%-70%.
The contract, awarded by the Municipal Corporation of Greater Mumbai (MCGM) to the joint venture, includes the design and construction of road, bridges, interchanges including reclamation and associated works, HCC said.
HCC is also responsible for the construction of the Worli-Bandra sealink, which will form a part of the new highway.
Out of the Rs 2,126 crore worth of construction, HCC’s share will be 55% or Rs. 1,169 crore.