The Government of India's Ministry of Railways has sanctioned a new board gauge (BG) line between Jeypore and Navarangpur in the state of Odisha.

Construction of the new 38km BG is expected to cost around Rs7.48bn ($115m) and currently slated for completion in three years.

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The project will be implemented on an equal cost-sharing basis between the Ministry of Railways and the Government of Odisha. The state government will also bear the cost of the land to be acquired for the project.

The project was initially announced in the Union Budget 2016-2017 and is important for connecting Navarangpur District of Western Odisha with Jeypore, which is an existing station on the Kottavalasa- Kirandul line.

Important towns such as Koraput, Jeypore, Jagdalpur and Dantewada will all be connected via the new line upon completion.

"Construction of the new 38km BG is expected to cost around Rs7.48bn ($115m) and currently slated for completion in three years."

The network will also serve as an important link to connect Navarangpur to Junagarh / Kalahandi District, and will result in shorter journeys to many other places within the states of Odisha, Chhattisgarh and Andhra Pradesh.

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Additionally, it is expected to see freight traffic carrying maize, rice, fertilizer, cement, wheat and other commodities from the various villages en-route.

A memorandum of understanding (MoU) was previously signed between the Ministry of Railways' Rail Land Development Authority (RLDA) and National Building Construction Corporation (NBCC), which is a public sector undertaking (PSU) under the Ministry of Urban Development.

The agreement was signed to carry out the implementation of station redevelopment projects for ten identified stations, partnering with the respective Smart Cities.

RLDA and NBCC will form a special purpose vehicle (SPV) joint venture company, which will be responsible for redeveloping the stations via a self-financing model.