New Railway Division to Unlock South Odisha’s Economic Potential

The new division is expected to strengthen railway operations, improve project monitoring, enhance infrastructure planning and accelerate execution of development initiatives across the region. With a dedicated Divisional Railway Manager (DRM) stationed at Rayagada, coordination with State Government agencies, district administrations, industries and local communities is expected to become faster and more effective.

Administrative Strengthening and a New Engine of Local Economy

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. The division will be headed by a DRM and supported by around 40 officers and nearly 600 railway employees, making Rayagada a key railway administrative and operational centre in South Odisha.

The establishment of the divisional headquarters is expected to provide a significant boost to the local economy through increased demand for housing, transportation, education, healthcare and commercial services, creating new opportunities for local businesses and entrepreneurs.

Tapping Untapped Freight Potential

Strategically located in one of India’s most mineral-rich regions, the Rayagada Division is poised to emerge as a major freight growth centre within Indian Railways. Iron ore from the Kirandul–Bacheli mining belt will continue to dominate freight traffic, while movement of alumina, bauxite, steel products, slag, fly ash and other industrial commodities is expected to increase steadily.

The division is projected to handle more than 40 million tonnes of freight annually, underlining its growing importance as a logistics and freight hub. Improved connectivity is also expected to support increased movement of foodgrains and essential commodities to tribal and remote regions.

Expanding Freight Infrastructure Through GatiShakti Cargo Terminals

A major growth driver for the division will be the development of GatiShakti Cargo Terminals (GCTs) at Singaram, Tikiri, Bhansi, Mallividu and Bheja. These facilities will strengthen rail-based logistics for mining, aluminium, steel and other core industries.

The proposed Bhansi and Mallividu terminals are expected to handle around 7 MTPA and 5 MTPA, respectively. Additional freight facilities, including industrial sidings and bulk cargo infrastructure, will further enhance logistics efficiency and industrial connectivity. The division is also expected to unlock freight potential from agricultural produce and forest products across the region.

₹20,020 Crore Railway Infrastructure Pipeline

The newly created division is expected to accelerate execution and monitoring of railway infrastructure projects covering nearly 1,360 kilometres with an estimated investment of about ₹20,020 crore.

Major projects 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 KK Line, and other operational improvement projects are also expected to gain momentum under the new divisional setup.

Better Monitoring, Faster Project Execution

The establishment of the divisional headquarters at Rayagada will bring railway administration closer to project sites and operational centres, facilitating quicker decisions and better monitoring. The DRM’s office will play a key role in coordinating major industrial connectivity projects, including those linked to NMDC, NALCO, UAIL and other industries.

Closer coordination with State Government departments is expected to expedite land acquisition, clearances and other project-related issues, reducing delays and improving execution efficiency.

From Tribal Hinterland to Economic Opportunity Zone

The districts served by the Rayagada Division, including Rayagada, Koraput, Malkangiri, Nabarangpur, Gajapati and Kandhamal, are expected to benefit significantly from improved railway connectivity, freight infrastructure and accelerated project implementation. These developments are likely to generate employment opportunities, attract logistics and warehousing investments and stimulate industrial and commercial growth.

With enhanced connectivity, stronger freight infrastructure and faster project execution, the Rayagada Railway Division is poised to play a pivotal role in transforming South Odisha into a vibrant economic and logistics corridor.

Operationalisation of the division reflects Indian Railways’ commitment to decentralised administration, regional empowerment and inclusive infrastructure-led development, ensuring that the benefits of growth reach even the remotest parts of the region.