Chief Minister Naveen Patnaik gave his approval to such a proposal, the sources said, adding Odisha was the first state in the country to provide free of cost land for any railway project and offer to bear 50 per cent of cost of the construction of the railway line.
The state government action in this regard came due to tardy progress of the 289 km Khurda-Bolangir railway line.
"As the Khurda-Bolangir railway project is considered significant for the socio-economic development of the people of at least four districts (Bolangir, Boudh, Nayagarh and Sonepur), the state government was ready to contribute to the project," the sources said.
Though Khurda-Bolangir project is considered as the biggest railway project in the state, only Rs 40 crore was allotted for the project in the last railway budget.
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The first survey work for the line was conducted in 1945 by the then Bengal-Nagpur Railway (BNR) as it was felt that there should be railway link for the tribal dominated districts of Bolangir, Kalahandi, Koraput and Phulbani.
A number of delegations had met subsequent Railway Ministers, without any progress. Therefore, the state government decided to take half of the responsibility for completion of the project.