Railway Recruitment Cell Special Train, with hundreds of students on board, had started from Yamunanagar to Chandigarh early this morning for the examination today.
A railway official of the Ambala Division told PTI over phone that the engine had partially derailed barely 2 km from the Yamunanagar railway station.
"Senior railway officials reached the spot and an inquiry has been ordered in the incident," he added.
A student, who was on board, told reporters, that the train was moving at a very slow speed at the time of the incident.
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He said that some students had boarded buses and taxis to reach the examination venue on time.
The railway official said that several passengers had been accommodated in other trains from nearby railway stations including Ambala.
The rail traffic on the affected route had been restored after over three hours of the accident.