Propelled by centuries from captain and opener Shukla and wicketkeeper Rawat, and their 118-run fifth-wicket stand, Railways ended the day at 335 for nine.
Railways were at a comfortable 249 for four at one stage, but Shukla's dismissal off Pandey in the 73rd over triggered a collapse, as the visiting team lost all but one of their remaining wickets, for just 57 runs.
Railways still trail by 175 runs with just one first innings wicket in hand. The Group B match at Holkar Cricket Stadium may still see a result on the final day tomorrow if Railways are all out early next morning and they are asked to follow on.
Brief Scores:
Madhya Pradesh: 510 for 6 decl
Railways: 335 for 9 in 104 overs (Shivakant Shukla 113, and Mahesh Rawat 103; Ishwar Pandey 7/84).