Odisha Plans PPP-Based Rail Corridors to Boost Port-Led Industrialisation
State targets faster coal evacuation, improved hinterland connectivity and industrial expansion through new logistics corridors
Bhubaneswar: In a major push toward strengthening its logistics and industrial backbone, the Odisha government is planning to develop new railway corridors under the public-private partnership (PPP) model. These corridors will form part of the state’s port-led industrialisation strategy, designed to accelerate coal evacuation, enhance hinterland connectivity, and stimulate balanced economic growth.
At a recent high-level meeting chaired by Chief Secretary Manoj Ahuja, the state government reviewed ongoing and proposed rail infrastructure projects, with a particular focus on the Talcher coalfields corridor and the Gopalpur-Rayagada-Jeypore economic corridor. Both are expected to emerge as critical transport arteries for industrial logistics in the coming years.
Expanding Talcher’s Coal Transport Network
According to official sources, the Talcher coalfields rail corridor — estimated to cost Rs 4,882 crore — has been prioritised to improve coal transportation efficiency from one of India’s largest coal-producing regions. The corridor, comprising both inner and outer rail networks, is expected to enable faster evacuation of coal to various ports and industrial units.
The state’s plan aligns with Mahanadi Coalfields Limited’s (MCL) ambitious expansion strategy, which projects that 88 per cent of coal despatch — about 162.8 million tonnes — will be handled through rail by 2029–30. While the Angul-Balram stretch of the inner corridor has already been commissioned, the next phase includes the 50-km Balram-Putagadia-Tentuloi-Jharpada link and a 112.56-km outer corridor between Budhapanka and Luburi via Tentuloi.
Sources confirmed that the second phase of the inner corridor will cost Rs 1,404.36 crore, while the outer corridor will require Rs 3,477.67 crore. Both will be executed under PPP mode, possibly through special purpose vehicles (SPVs) or joint ventures. “The Expanded Board for Railways, NITI Aayog, and the Network Planning Group have already been apprised of these proposals,” said a senior official.
New Corridors to Link Ports and Hinterlands
Parallelly, the government is planning to develop the 400-km Gopalpur-Rayagada-Jeypore economic corridor, integrating road and rail infrastructure to improve access to ports and industrial clusters in southern Odisha. A committee headed by Industries Additional Chief Secretary Hemant Sharma will oversee alignment and land-related issues, with officials from the Rail Coordination Commission, IDCO, and East Coast Railway (ECoR) as members.
Earlier, the Adani Group had expressed interest in partnering on this economic corridor, which aims to connect Gopalpur Port with the mineral-rich regions of southern Odisha. Once operational, it is expected to serve as a catalyst for trade, export facilitation, and industrial development in the hinterlands.
In addition to these flagship projects, the state has prioritised several port-linked rail lines. These include the doubling of the Haridaspur-Paradeep line (74.08 km), a new Jajpur-Keonjhar Road–Dhamra Port line via Aradi (96 km), and the 270-km Gopalpur-Rairakhol route. These projects are intended to strengthen cargo flow to and from Odisha’s major ports, including Paradeep, Dhamra, and Gopalpur.
Strengthening Regional Connectivity
The government has also initiated preliminary discussions on constructing a rail link between Raja Athagarh in Cuttack district and Kaipadar Road in Khurda district, running parallel to the proposed Capital Region Ring Road (CRRR). This alignment will enhance connectivity in the Bhubaneswar–Cuttack metropolitan area, reducing congestion and facilitating seamless freight movement.
The Commerce and Transport Department, along with IDCO and ECoR, has been tasked with expediting detailed project reports (DPRs), alignment studies, and land acquisition processes to avoid procedural delays. A meeting with the Railway Board is expected soon to finalise PPP modalities for these projects.
Economic and Strategic Impact
Chief Secretary Manoj Ahuja emphasised that the upcoming corridors would be transformative for Odisha’s logistics ecosystem. “Once commissioned, these corridors will enable efficient and cost-effective transportation of bulk commodities like coal, minerals, and industrial goods. They will not only support industrial growth but also create new opportunities in employment and regional trade,” he said.
By combining private investment with government facilitation, the proposed corridors are set to bridge infrastructure gaps, unlock the economic potential of Odisha’s interior regions, and strengthen its position as a key logistics hub in eastern India.
