Odisha Plans New Rail Corridors To Boost Logistics

Odisha is strengthening its logistics network as part of its port-led industrialisation strategy and is considering new railway corridors under the public–private partnership model to drive economic growth across the hinterland.

Official sources said a new rail corridor has been proposed for the Talcher coalfields at an estimated cost of Rs 48.82 billion, along with the Gopalpur–Rayagada–Jeypore economic corridor, which will include both road and rail connectivity. Additional port-linked rail corridors are also being planned in various regions.

A recent high-level meeting chaired by Chief Secretary Manoj Ahuja resolved to fast-track both the inner and outer rail corridors at Talcher to support quicker evacuation of coal. Under Mahanadi Coalfields Ltd’s expansion plan, coal despatch by rail is expected to reach 88 per cent, or 162.8 million tonnes, by 2029–30.

Phase I of the inner corridor, the Angul–Balram rail link, has already been commissioned. The Railway Board has been briefed on Phase II of the inner corridor, covering the 50 km Balram–Putagadia–Tentuloi–Jharpada section, and the 112.56 km outer corridor connecting Budhapanka to Luburi via Tentuloi.

According to officials, the expanded board for railways, NITI Aayog and the Network Planning Group have been updated on the Talcher corridor. A decision has been taken to execute the inner corridor Phase II at Rs 14.04 billion and the outer corridor at Rs 34.78 billion in PPP mode through joint ventures or special purpose vehicles.

A meeting with Railway Board officials will be convened shortly to finalise PPP modalities. The Commerce and Transport Department, IDCO and East Coast Railway have been instructed to complete groundwork for quicker finalisation of detailed project reports, alignment and land acquisition.

The state will also form a special committee headed by Hemant Sharma, Additional Chief Secretary of the Industries Department, along with the Rail Coordination Commissioner and representatives from ECoR and IDCO, to resolve alignment and right-of-way issues for the Gopalpur–Rayagada economic corridor. The 400 km corridor, connecting Gopalpur Port and Jeypore, had earlier attracted interest from the Adani Group.

As part of port-led corridor development, the state plans to expedite doubling of the 74.08 km Haridaspur–Paradeep line, a new 96 km line between Jajpur–Keonjhar Road and Dhamra Port via Jajpur and Aradi, and a 270 km line between Gopalpur and Rairakhol.

Preliminary discussions have also begun on constructing a rail link from Raja Athagarh in Cuttack district to Kaipadar Road in Khurda district, running parallel to the proposed Capital Region Ring Road.

Chief Secretary Ahuja said the new corridors will significantly improve efficient and cost-effective bulk coal evacuation, supporting broader regional economic development.

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