The 38 km long new line project will be implemented on cost-sharing basis of 50 per cent each between the Railways and Odisha government.
The cost of the project is Rs 747.91 crore and is expected to be completed in three years.
The project is important for connecting Nabarangpur district of western Odisha with Jeypore in the southern region to an existing station on the Kottavalasa-Kirandul line.
The new line will provide connectivity to important towns like Koraput and Jeypore in Odisha and Jagdalpur and Dantewada in Chhattisgarh.
Odisha government will bear the entire cost of land and 50 per cent of construction cost of the project.
The link will be a boon for transporting maize, rice, fertiliser, cement, wheat and others from various villages and towns en-route, the officials added.
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