Rayagada Railway Division To Begin Operations From June 1

Bhubaneswar: South Odisha is set to witness a major boost in railway infrastructure and economic activity with the operationalisation of the Rayagada Railway Division under East Coast Railway from June 1, 2026. The new division is expected to improve railway administration, accelerate infrastructure projects and strengthen freight connectivity across some of the state’s most resource-rich districts.

The creation of the division marks a significant step in decentralising railway operations and bringing decision-making closer to project sites and operational centres. Railway officials believe the move will help improve monitoring of ongoing projects, enhance coordination with government agencies and speed up the execution of key infrastructure initiatives.

Rayagada will now emerge as an important railway administrative hub, with the divisional headquarters functioning under a dedicated Divisional Railway Manager (DRM). The new setup will be supported by around 40 officers and nearly 600 railway employees. While basic infrastructure required for the commencement of operations has already been established, the development of office buildings and staff facilities will continue in phases.

Officials said the establishment of the divisional headquarters is likely to generate economic activity in the region by increasing demand for housing, transportation, healthcare, education and commercial services. The presence of a large railway workforce is also expected to create opportunities for local businesses and service providers.

The division is strategically located in a mineral-rich belt and is expected to emerge as a major freight hub for Indian Railways. Freight movement from the Kirandul-Bacheli iron ore sector will continue to be a key contributor, while transportation of alumina, bauxite, steel products, fly ash and other industrial commodities is projected to grow steadily in the coming years.

According to railway estimates, the division is expected to handle more than 40 million tonnes of freight annually. Improved rail connectivity is also expected to facilitate the movement of foodgrains and essential commodities to remote and tribal areas of southern Odisha.

A major focus area for the new division will be the development of freight infrastructure through GatiShakti Cargo Terminals. New cargo terminals are planned at Singaram, Tikiri, Bhansi, Mallividu and Bheja to support mining, aluminium and steel industries. The proposed terminals at Bhansi and Mallividu alone are expected to handle around 7 million tonnes and 5 million tonnes of cargo annually, respectively.

The division will also oversee railway infrastructure projects worth approximately ₹20,020 crore covering nearly 1,360 kilometres. Several strategic rail projects are expected to gain momentum under the new administrative structure, including the Jeypore-Malkangiri, Jeypore-Nabarangpur, Junagarh-Nabarangpur, Malkangiri-Pandurangapuram and Gunupur-Therubali new railway lines, as well as the Kottavalasa-Koraput doubling project.

Railway officials said locating the divisional headquarters at Rayagada will enable faster decision-making, closer supervision of project sites and more effective coordination with industrial stakeholders such as NMDC, NALCO and UAIL. Improved coordination with state government departments is also expected to help address issues related to land acquisition, clearances and project implementation.

The districts falling under the division’s jurisdiction, including Rayagada, Koraput, Malkangiri, Nabarangpur, Gajapati and Kandhamal, are expected to benefit from enhanced connectivity, logistics infrastructure and investment opportunities. The developments are likely to create employment, attract warehousing and logistics businesses and support industrial growth across the region.

With its focus on freight expansion, infrastructure development and regional connectivity, the Rayagada Railway Division is expected to play a crucial role in transforming South Odisha into a major logistics and economic corridor while extending the benefits of railway-led development to remote and tribal areas.