They said the station master at Thottipalayam Railway Station between Erode and Tiruppur noticed smoke emerging from the brake van of the train that left around 4 AM and alerted railway officials at nearby Perundurai Railway Station where it was stopped and firemen doused the fire.
"Since the fire broke out in the brake van, no one was injured," they said.
Traffic in the route was disrupted by a couple of hours following the incident.
An Erode report said the luggage van was detached from the train and the other compartments taken to a safe distance. The train left Perundurai station at around 6.30 AM, it said.
Railway officials said the cause of the fire is being ascertained.