Odisha earmarks Rs 450cr to accelerate rail connectivity, three major rail corridors set for takeoff

The Government of Odisha on Thursday initiated advance land acquisition for three major rail corridors, signalling a push to fast-track critical freight infrastructure projects across the state. The proposed corridors to be developed under the Public-Private Partnership (PPP) model include the Talcher coal rail network (with inner and outer corridors spanning around 162 km), the 100-km Jajpur Road–Dhamra Port link, and the 50-km Tikri–Kutrumali bauxite corridor. 

The state aims to ensure land readiness before inviting private partners, a move intended to prevent delays that typically affect large infrastructure projects.

Crucial Connectivity Projects

The Talcher corridors, which have already received in-principle approval from the Ministry of Railways, are considered strategically important for coal evacuation and are expected to strengthen dedicated freight movement in the mineral-rich belt. Meanwhile, the Jajpur Road–Dhamra line is seen as a crucial connectivity project linking industrial hubs to port infrastructure, boosting export potential.

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Estimated investments for the three projects run into several thousand crores, reflecting their scale and economic significance. To support implementation, the state government has earmarked Rs 450 crore in the 2026-27 budget specifically for railway land acquisition.

Strengthen Odisha's Position

A high-level meeting involving senior state officials, railway authorities and major industrial stakeholders reviewed multiple PPP frameworks, including joint venture and non-government railway (NGR) models. Leading industry players such as Tata Steel, Jindal Steel & Power, Vedanta Ltd, Hindalco Industries, and Adani Ports & Special Economic Zone Ltd have shown interest in different corridors, along with public sector undertakings and mining firms.

Additionally, the Jajpur Road–Dhamra Railpatha Sangram Samiti has urged the government to expedite land acquisition, citing long-standing demands from residents of Jajpur, Bhadrak and Kendrapara districts.

If executed as planned, the corridors are expected to significantly enhance freight logistics, streamline mineral transportation, and strengthen Odisha’s position as a key industrial and export hub in eastern India.