Odisha plans Rs 4,882 crore-worth new railway corridor; aims to boost coal transport

Plans are under consideration for a major new rail corridor for the Talcher coalfields, with an estimated project cost of Rs 4,882 crore. The initiative is part of an overarching strategy to facilitate faster evacuation of coal from the region, particularly as Mahanadi Coalfields Ltd plans to increase its coal despatch via rail to 88 per cent (162.8 million tonnes) by 2029-30.

According to reports by The New Indian Express, the new inner and outer rail corridors of Talcher are critical to this plan, with the first phase, the Angul-Balram rail link, already commissioned.

The second phase (Balram-Putagadia-Tentuloi-Jharpada) and a 112.56 km outer corridor (Budhapanka to Luburi via Tentuloi) are in the pipeline. The project is expected to be executed in a public-private partnership (PPP) mode through joint ventures or special purpose vehicles (SPVs).

Gopalpur-Rayagada-Jeypore Economic Corridor

In addition to the Talcher rail corridor, the government is planning the Gopalpur-Rayagada-Jeypore economic corridor, integrating both road and rail networks.

A special committee led by the Additional Chief Secretary of Industries will finalise the alignment and address right-of-way concerns. The Adani Group has shown interest in developing the 400 km corridor linking Gopalpur Port with Jeypore, which is expected to further bolster trade and logistics in the region.

Funding and Coordination for Critical Railway Infrastructure

A series of other railway infrastructure projects is also progressing across Odisha. The Railway Ministry has fully funded the construction of 92 railway overbridges (ROBs) across the state, a significant shift from the previous cost-sharing model.

The overbridges will be spread across Khurda, Ganjam, Jajpur, Cuttack, Bhadrak, and other districts, with work set to commence soon.

Alongside this, Indian Railways has issued a Rs 501-crore tender for the construction of a third rail line between Khurda Road and Gangadharpur, a vital segment of the Howrah–Chennai mainline, with a completion target within 30 months.

ALSO READ: Railway Board approves tri-weekly run for Udhna–Brahmapur Amrit Bharat Express

Parallel Expansion in Northern and Southern Odisha

In northern Odisha, land acquisition has started for the Budhamara–Chakulia broad-gauge railway line. This project, part of three new railway lines, was inaugurated by President Droupadi Murmu in December 2024.

Meanwhile, in southern Odisha, the Jeypore–Malkangiri railway project is moving forward, with compensation already disbursed to beneficiaries in the Mathili and Khairput blocks. Work on this stretch is expected to begin in early 2026.