The Government is moving ahead with an ambitious plan to expand Kathmandu's 27-kilometer Ring Road into a modern eight-lane roadway at an estimated cost of around Rs. 125 billion. The project includes the construction of major transport infrastructure such as underpasses, flyovers, and a double-deck tunnel to improve traffic flow across the capital.

Originally built with Chinese assistance in 2026 BS and fully operational since 2034 BS, the Ring Road has undergone phased expansion over the years. The first phase, covering the Koteshwor–Kalanki section, was widened to eight lanes with Chinese grant assistance and handed over to Nepal in 2018.

The second phase aims not only to widen the remaining sections but also to develop advanced traffic management infrastructure. Following the successful construction of the Kalanki underpass, additional underpasses, flyovers, and tunnel routes are being planned.

Earlier, the Japan International Cooperation Agency (JICA) recommended flyovers at Gaushala, Chabahil, Maharajgunj, and Balaju under its 2017 Kathmandu Transport Master Plan. Although that proposal was not implemented, JICA is currently preparing a new transport master plan expected to guide future infrastructure development in the Kathmandu Valley.