6-km Doubling Project to Add 8.9 MTPA Freight Capacity, Reduce Train Delays and Support Expanding Mining, Steel and Port Activity

Posted On: 28 September 2026 | PIB Delhi

Indian Railways has approved a ₹122-crore doubling project for the 6-km Barbil–Bolanikhadan section of South Eastern Railway, strengthening rail capacity on an important mineral transportation corridor in Odisha.

The project is expected to facilitate an additional 8.9 million tonnes per annum (MTPA) of freight traffic once commissioned and help reduce delays to freight trains operating on the route.

The section forms part of Indian Railways’ Energy, Mineral and Cement Corridor and currently operates as a single-line stretch carrying around 9 MTPA, including approximately six loaded iron ore rakes per day.

Key Highlights

• ₹122 crore approved for the 6-km Barbil–Bolanikhadan doubling project.
• Project located on an important South Eastern Railway mineral corridor.
• Expected to facilitate an additional 8.9 MTPA freight traffic.
• Existing single-line section currently handles around 9 MTPA.
• Approximately six loaded iron ore rakes per day currently originate from the section.
• Freight includes high-grade iron ore and pellets moving towards steel plants and ports.
• Doubling is intended to reduce freight train delays and address future capacity requirements.
• Project supports the Energy, Mineral and Cement Corridor.

Rail Capacity to Expand Ahead of Industrial Growth

The Barbil–Bolanikhadan section plays an important role in the movement of iron ore and pellets from mining areas and private sidings towards major steel plants and ports.

The existing single-line infrastructure is already carrying substantial freight traffic. According to the government, the approved doubling will provide additional capacity of 8.9 MTPA, helping accommodate future freight requirements as mining, industrial and port capacities expand.

The project is being taken up ahead of the full realisation of planned mine expansion and additional plant and port capacity, with the objective of addressing potential bottlenecks on the corridor.

Strengthening the Steel and Port Supply Chain

The route handles high-grade ore and pellets originating from SAIL’s Bolani mines as well as private sidings associated with Rungta and Khatau Narbheram.

By adding a second track, Indian Railways aims to improve the movement of freight towards steel manufacturing facilities and ports. Increased rail capacity can help accommodate higher volumes without relying solely on the existing single-line infrastructure.

The development is therefore closely linked to the wider industrial ecosystem covering mining, steel production, logistics and port operations.

Impact on Hospitality, Travel & Regional Development

Although the project is primarily a freight infrastructure investment, stronger rail capacity in a mineral and industrial region can have indirect implications for the wider regional economy.

Potential areas of relevance for hospitality and travel include:

• Business travel: Expanding mining, steel and logistics activity can generate movement of business travellers, contractors and technical personnel.
• Accommodation demand: Industrial expansion can support demand for hotels and serviced accommodation in nearby commercial centres.
• Food & beverage: Greater workforce and business activity can create additional demand for restaurants and catering services.
• Regional investment: Improved freight infrastructure can support industrial activity and associated economic development.
• Local mobility: Expansion of economic activity can increase demand for transport and supporting services.
• Destination development: As industrial towns and surrounding areas develop, supporting hospitality and visitor infrastructure may also expand.

These hospitality impacts are indirect and would depend on the pace of industrial investment and associated regional development.

Industry Takeaway

The ₹122-crore Barbil–Bolanikhadan doubling project is designed to strengthen rail capacity on a critical mineral movement corridor before future mining, steel and port expansion places additional pressure on the existing single line.

For the broader travel and hospitality ecosystem, the project demonstrates how industrial rail infrastructure can influence regional business activity and supporting service demand. Increased freight capacity can facilitate industrial growth, while the resulting expansion of business and employment activity may create new requirements for accommodation, food services and local mobility in the surrounding region.