Odisha Anticipates Record Railway Funding in Upcoming Union Budget
The state of Odisha is poised for another landmark railway allocation in the Union Budget 2026-27, building upon the historic Rs 10,599 crore received in the previous fiscal year. This substantial funding marked the highest-ever budgetary provision for railway sector development in the state, setting a new benchmark for infrastructure investment.
Major Projects Nearing Completion and Awaiting Boost
The Khurda Road-Balangir new line project, spanning 301 kilometers, represents a significant infrastructure milestone. After three and a half decades of development, 226 kilometers of this crucial corridor are now operational, with train services currently running from Khurda Road to Daspalla and from Balangir to Purunakatak via Sonepur. With completion expected this year, officials anticipate enhanced budgetary support surpassing last year's allocation.
Another critical initiative, the Talcher-Bimalagarh new line covering 149.7 kilometers, faces construction delays despite its strategic importance in connecting coal-rich regions. Government sources indicate that additional funding may be earmarked to accelerate this vital connectivity project.
Tribal Connectivity and Regional Integration Projects
Odisha's railway expansion plans prioritize bringing underserved regions onto the national rail network. The Jeypore-Malkangiri and Jeypore-Nabarangpur new line projects are particularly significant as they will connect tribal-dominated aspirational districts that have long lacked proper rail infrastructure. Local communities have actively demanded commencement of construction on these transformative corridors.
The state government expects central sanction for several additional new line projects that promise to enhance regional connectivity:
- Gunupur-Therubali new line (73.6 km)
- Junagarh-Nabarangpur new line (116.2 km)
- Badampahar-Kendujhargarh new line (82 km)
- Bangriposi-Gorumahisani new line (85.6 km)
- Malkangiri-Pandurangapuram via Bhadrachalam new line (173.6 km)
- Buramara-Chakulia rail line (60 km)
These projects will facilitate cross-state connectivity, with the Malkangiri-Pandurangapuram line linking Odisha with Andhra Pradesh and Telangana, while the Buramara-Chakulia project will create vital connections with Jharkhand and West Bengal.
Economic and Commodity Transportation Benefits
The expanded railway network will serve as essential corridors for transporting diverse commodities across the region. Official sources highlight that these routes will efficiently move:
- Agricultural products and fertilizers
- Coal and iron ore
- Steel, cement, and bauxite
- Limestone and aluminum powder
- Granite, ballast, and containers
This enhanced connectivity will particularly benefit aspirational districts across multiple states, stimulating economic growth and regional development.
Additional Infrastructure and Amenities Development
Beyond new line projects, Odisha expects budgetary support for several other crucial initiatives. The Bargarh Road-Nuapada new line (138 km) has gained political significance in western Odisha, with the government seeking funds to expedite construction. Similarly, the Sardega-Bhalumunda double line project (37 km) awaits financial allocation.
Under the Amrit Bharat scheme, 57 stations across Odisha are undergoing redevelopment, with additional funds expected to enhance passenger amenities alongside infrastructure improvements. Furthermore, the railways have committed to constructing over 100 Rail Over Bridges (ROBs) in the state, with the Union Budget likely to sanction necessary funding for these critical safety and connectivity structures.
As Odisha prepares for the Union Budget 2026-27, the state's comprehensive railway development agenda reflects a strategic vision for enhanced connectivity, economic growth, and regional integration through sustained infrastructure investment.