Centre Approves Rs 10,783 Crore Rail Projects Across Odisha, 4 States

10 Sep 2026, 07:17 by Vinay Kakkad · KalingaTV

Odisha is set to gain from a major railway capacity expansion approved by the Centre, with one of three new multi-tracking projects passing through the Kharagpur-Jharsuguda corridor. The three projects, spread across Odisha and four other states, will involve an estimated investment of Rs 10,783 crore and add about 656 km to the Indian Railways network.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved the projects on September 9. The work is planned for completion by 2029-30.

The package covers West Bengal, Jharkhand, Odisha, Madhya Pradesh and Chhattisgarh. Besides strengthening existing railway routes, the additional tracks are expected to ease congestion and improve the reliability and efficiency of train operations.

Kharagpur-Jharsuguda Corridor Among Three Projects

The Odisha-linked project is the Kharagpur-Jharsuguda (Bagdehi) fourth line. The other two are the fourth line between Katni and Pendra Road and the third line connecting Bilaspur (Uslapur) with Pendra Road.

Together, the projects will cover 14 districts and improve rail access to around 4,790 villages with a combined population of about 56 lakh.

The Centre said the expansion will support the movement of people, goods and services by increasing capacity on the existing railway network.

More Capacity For Coal, Cement, Iron And Steel

A major part of the expansion is aimed at strengthening freight movement. The routes are important for transporting commodities such as coal, cement, iron and steel.

Once the capacity enhancement is completed, the projects are expected to support an additional 27 million tonnes of freight traffic every year.

For the broader economy, the government expects stronger rail capacity to improve logistics efficiency and reduce transportation costs. The projects are being developed under the PM Gati Shakti National Master Plan, which focuses on integrated infrastructure planning, multimodal connectivity and coordination among stakeholders.

Better Access To Odisha’s Religious And Tourist Sites

The additional railway capacity will also improve connectivity to several prominent tourist and religious destinations across the project network.

The locations listed by the government include Odisha’s Taratarini Temple and the Shri Khetra Jagannath Temple (near Jharsuguda). Other destinations include Bandhavgarh Tiger Reserve, Virateshwar Temple, Amarkantak Temple, Jwaleshwar Dham, Achanakmar Tiger Reserve, Khutaghat Dam, Malhar Archaeological Site and Ratanpur Mahamaya Temple.

Rail Expansion To Cut Fuel Use And Emissions

The Centre has also linked the projects to its environmental and energy-efficiency goals. Railways are described as an energy-efficient mode of transport, and the added capacity is expected to encourage greater movement of goods by rail.

The projects are estimated to reduce oil imports by around 12 crore litres and cut carbon dioxide emissions by about 62 crore kg.

The government equates the projected reduction in CO2 emissions to the environmental benefit of planting 2.48 crore trees.

The Centre said the expanded network will improve operational efficiency and service reliability while easing congestion on the affected routes. It also linked the infrastructure push to broader development in the region, including potential employment and self-employment opportunities.