Opener V Cheluvaraj was a fighting a lonely battle at 63 not out while Arindam Ghosh (48) gave him good support at the middle as the duo shared 104 runs for the fourth wicket.
Saurabh Wakaskar (11) was the only other Railway batsman to have reached double digit score.
Pace duo of A Aswin Crist (4/42) and J Kousik (3/7) wrecked the Railways innings with their incisive bowling.
Overnight centurian Baba Indrajith added 30 more runs before falling to Railway's top bowler Anureet Singh, who finished with impressive figures of five for 104.
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Indrajith faced 233 balls and struck 24 boundaries during his knock.
From here on, it will be a Herculean task for Railways to take the vital first innings lead as they still trail Tamil Nadu by 199 runs with just three wickets in hand.
Brief Scores:
Tamil Nadu 1st innings; 328 all out in 111.2 overs (Baba Indrajith 151; Anureet Singh 5/104).