Bhubaneswar: South Odisha is poised for a major economic and infrastructure transformation as the newly created Rayagada Railway Division of East Coast Railway begins operations from June 1.
The move is expected to strengthen railway administration, accelerate project execution, boost freight movement and unlock the immense industrial and logistics potential of the region.
The operationalisation of the division marks a significant step towards decentralised railway governance, bringing decision-making and project monitoring closer to one of India’s most resource-rich regions.
Railway officials believe the new division will play a pivotal role in converting South Odisha’s largely tribal hinterland into a vibrant industrial and logistics corridor.
With a dedicated Divisional Railway Manager (DRM) stationed at Rayagada, coordination among state government departments, district administrations, industries and local stakeholders is expected to become faster and more effective.
The division will be supported by around 40 officers and nearly 600 railway employees, establishing Rayagada as a major railway administrative and operational centre in South Odisha.
Basic infrastructure required for commencement of operations has already been put in place, while development of the divisional headquarters, office buildings and staff facilities is progressing in phases.
Strategically located amid some of the country’s richest mineral belts, the Rayagada Division is expected to emerge as a key freight growth centre within Indian Railways.
Iron ore transportation from the Kirandul-Bacheli mining region will continue to form the backbone of freight operations, while traffic involving alumina, bauxite, steel products, slag, fly ash and other industrial commodities is projected to grow substantially in the coming years.
The division is expected to handle more than 40 million tonnes of freight annually, underlining its growing importance in India’s logistics network.
Enhanced railway connectivity will also facilitate smoother transportation of foodgrains and essential commodities to remote and tribal regions.
A major driver of future growth will be the development of GatiShakti Cargo Terminals (GCTs) at Singaram, Tikiri, Bhansi, Mallividu and Bheja.
These terminals are expected to significantly strengthen rail-based logistics for mining, aluminium, steel and other core industries operating in the region.
The proposed terminals at Bhansi and Mallividu alone are expected to handle around 7 million tonnes per annum (MTPA) and 5 MTPA, respectively.
The new division is expected to accelerate the implementation and monitoring of railway infrastructure projects spanning nearly 1,360 kilometres, involving an estimated investment of about Rs20,020 crore.
Key projects under the division include Jeypore–Malkangiri New Line (130 km), Jeypore–Nabarangpur New Line (38 km), Junagarh–Nabarangpur New Line (116.21 km), Malkangiri–Pandurangapuram via Bhadrachalam New Line (173.61 km), Gunupur–Therubali New Line (73.62 km), Kottavalasa–Koraput Doubling Project (189.278 km). Capacity enhancement works on the strategically important KK Line, along with several operational improvement projects, are also expected to receive greater focus under the new divisional structure.
The districts falling under the division—including Rayagada, Koraput, Malkangiri, Nabarangpur, Gajapati and Kandhamal— are expected to witness significant benefits through improved connectivity, enhanced freight infrastructure and accelerated railway investments.