Combine sentences by using a noun or a phrase in apposition:
Bombay was once a fishing village. It is now the financial capital of India.

Bombay was a fishing village but now is the financial capital of India.

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Bombay, once a fishing village, is now the financial capital of India.

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A & B both

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No change

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Solution

The correct option is D Bombay, once a fishing village, is now the financial capital of India.
Two noun phrases put side by side in a clause to describe the same person or thing is called apposition. Here, Bombay and "once a fishing village" refer to the same place. Hence, Option C is correct. The rest of the options do not adhere to the goal, hence incorrect.

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