Progress in Gunupur–Therubali Rail Line Project Marks Key Milestone, Expected to Boost Transportation and Economic Growth in the Region

Rayagada, May 02:: The long-awaited rail connectivity project between Gunupur and Therubali has moved a step ahead after the signing of a bilateral MoU between the Central and State Governments on Thursday.
The agreement was signed through the President’s office on behalf of the Ministry of Railways and through the Governor of Odisha on behalf of the State’s Commerce and Transport Department. The signing ceremony was attended by Railway Board Gati Shakti (Civil)-II Executive Director Vivek Kumar and Commerce and Transport Department Secretary N.B.S. Rajput.
The proposed Gunupur–Therubali new railway line will cover a distance of 73.62 km, with an estimated initial cost of ₹1,165.89 crore. With the MoU in place, the process for land acquisition and tendering has been cleared, and the project is expected to be completed within five years.
Land acquisition has been finalized across 51 villages falling along the proposed alignment. Once the local administration completes land acquisition and hands it over to the Railways, construction work will begin.
As per the agreement, the State Government will bear the cost of land acquisition, while the Railways will fully fund the construction work. Compensation for private landowners will be provided by the State Government, and government land will be made available free of cost.
The project had been delayed due to the absence of an MoU. Once completed, the railway line is expected to significantly boost socio-economic development in the tribal-dominated regions of Rayagada district and bring remote settlements into the mainstream.
Officials said the rail connectivity will improve access to healthcare, education, and livelihood opportunities by linking the region with the broader transport network. The proposed line is also designed to overcome the geographical challenges of the Eastern Ghats, including construction of bridges, culverts, and modern station infrastructure.
The project will facilitate smooth transportation of agricultural produce, forest resources, and small-scale industrial goods, thereby strengthening the local economy and connecting it to larger markets.