Modi inaugurated the station and flagged off the train from the dais where he addressed the public.
The project, which started 16 years ago, is the first stage of the Hazaribagh-Koderma-Barkakana-Ranchi railway line of the East-Central Railway.
The 79.7-km first stage project cost Rs 936 crore, according to sources in the railways.
The decision to set up the line was taken by the Atal Bihari Vajpayee government.