Haridaspur Paradip Railway Company Limited is a Special Purpose Vehicle incorporated in 2006 under the National Rail VikashYojana. The company was established with the vision of providing an alternative and robust rail connectivity between Haridaspur and Paradip, alleviating the congestion on the existing Cuttack-Paradip line. The primary aim of this railway project was to serve the burgeoning steel production hub at Kalinganagar and Jamshedpur, along with facilitating transportation of iron ore from the Banspani region
There was an existing BG single line from Banspani to Daitari which connects to the coastal line at Jakhapura and links the iron ore producing districts of West Singbhum, Sundergarh, and Keonjhar into direct connectivity with the coastal line. The Haridaspur-Paradip line acts as the final extension of the Banspani‐Daitri link and provides an alternative route to Paradip port.