Thane city is one the major urban conglomerations of Mumbai Metropolitan Region (MMR) and is well connected to all parts of the country by rail and road. The city's proximity to the commercial capital of India and location at geographical center of MMR has given tremendous impetus to the growth of industries in and around Thane. Thus in the last two decades a number of industries have come up in Thane - Belapur Industrial area, Wagle Industrial Estate, Kalwa Industrial Estate and Kolshet – Balkum complex along Thane - Ghodbunder road.

Thane city is served by only one railway station on central railway, as a result of which traffic dispersal at the railway station is becoming increasingly difficult. Travel distance and time to reach the railway station has also been increasing over the years.

Presently mass transport within Thane city is mainly handled by bus transport. However, owing to limited accessibility, there has been a spate of increase in personalized modes of transport and IPT modes.

Considering the increasing traffic related problems in Thane city and taking a long term view of it, the Government of Maharastra and Thane Municipal Corporation (TMC) have envisaged the need for an efficient, economical, equitable and environment friendly MRT system for Thane city. Accordingly, GOM and Thane Municipal Corporation (TMC) had carried out preliminary studies through RITES (1989) and CIDCO (1994) in the past and have recommended a Mass Transit system (LRT). Accordingly, reservation for the proposed ring railway was made in the development plan of Thane city.

However, considering the urgent need for development of such system GoM has appointed MSRDC as the nodal agency for carrying out necessary studies and implementing the MRT system. MSRDC with the assistance from Ministry of Urban Development (MoUD), Thane Municipal Corporation (TMC) has initiated a study through consultants to examine the technical and financial viability of constructing and operating an efficient LRT system in Thane, connecting major land uses including the growing residential and industrial areas and give access to Thane railway station.

Thane Development Plan (TDP) has proposed development of a MRT System along a ring corridor of 20 km length with 11 stations. Based on the reconnaissance survey and other supporting studies, including discussions with local officials, the alignment of the corridor was reviewed and modified to enable easy implementation, avoid environmentally sensitive areas, minimize displacement of people and minimize costs. As TDP was upto year 2001, it was decided to prepare a Master Plan of MRTS for horizon year 2031. For this purpose, based on mathematical models, and with reference to estimated population size of 28.0 million in Mumbai Metropolitan Region (MMR) by 2031, the population size of Thane has been estimated to be 3.04 million. To accommodate the above population and the related socio-economic activities, an urban form and structure has been conceptualized.

A Master Plan of MRTS network to serve the future development pattern of Thane (2031) has been formulated It includes the Ring, North-South Axial and West-East Axial corridors. These corridors have been named as Green, Red and Blue corridors respectively. Two corridors pass through and intersect at the envisaged Town Centre providing high accessibility. The Thane MRTS network integrates with the suburban railway system at Thane, Mumbra and Diva stations. A number of transfer stations amongst the corridors are also envisaged. The details of the Master Plan network are as under:

Of the Master Plan Network, the Ring Corridor and part of the North-South Axial, from Kolshet to Naupada, were identified for conduct of DPR study.

The Green Corridor consisting of 11 stations, starts from Thane Suburban rail station on its northern side. The Thane MRTS station is proposed over the existing ‘Reservation Office’ integrating with Thane suburban rail station. There after, the alignment runs along Gokhale Road upto Naupada station and then along Eastern Expressway upto Kolshet station.

Between Naupada Station and Kolshet Station, there are four stations on the Eastern Expressway viz. Wagle Estate station serving the industrial areas, Cadbury Junction station serving the high density residential and activity areas, Golden Dyes station and Manpada station serving residential areas. After Kolshet station the corridor turns east and southwards to meet Balkum station, where car shed is proposed. Between Kolshet and Balkum station, there is a station at Azad Nagar. Balkum station and alignment on both sides of this station are on ground and the alignment further runs parallel to the proposed DP road behind Saket area upto Creek View Station, which is proposed in the planned Town Centre, the new activity focus of Thane 2031. The alignment runs upto Chendani Station along the Creek. This station serves the Dadaji Kondeo stadium and other educational institutes. From Chendani Station it meets starting point i.e. Thane MRTS Station.

The Detailed Project Report has been prepared and has been approved by MSRDC and the General Body of Thane Municipal Corporation (TMC). The alignment of the Green Corridor of MRTS was approved by the TMC in June, 2001 and the Project Report was approved in September, 2002. Simultaneously, MSRDC also initiated the process to obtain the Environmental Clearance for the Project. As per the procedure, MSRDC approached Maharastra Pollution Control Board (MPCB) for granting "Consent to Establish" to the project and is awaiting the same.

The Project proposal has been submitted to the Govt. of Maharastra for approval and the decision of the Government is awaited in this regard.