Eight wagons of the goods train derailed at the Korei station on Bhadrak-Kapilas Road Railway section under Khordha Road Railway Division at 6.44 a.m., an official of the East Coast Railway (ECoR) said.
The train was moving from Dongoaposi towards Chhatrapur.
Due to the derailment, the empty wagons crashed into the foot-over bridge, station building and other infrastructures at the station, the official said.
Railway officials have confirmed two deaths while it is feared that many more people may have been trapped under the mangled wagons and debris.
The actual casualty figure will be known after completion of the rescue operation, said Biswajit Sahu, chief public relation officer (CPRO), ECoR.
Accident relief train and a medical team have been ordered to reach the site immediately.
With the help of local administration and fire service teams, the rescue operation is going on, said Sahu.
Both the lines have been blocked due to the mishap and several trains have been partially cancelled or diverted on the route, he said, adding, help desks have been opened at the several important stations on the route.
The ECoR has opened emergency help numbers at Korai Station (8455887864, 8455887862), Bhubaneswar (0674-2534027) and Khurda Road (0674-2492245).
Expressing deep grief at the death of passengers in the train accident, Chief Minister Naveen Patnaik conveyed his deep sympathy to the bereaved families and announced ex-gratia of Rs 2 lakh each to the next of kin of the victims.
The Chief Minister has directed the administration to expedite rescue operation and provide adequate treatment for the injured persons and asked the Revenue and Disaster Management Minister Pramilla Mallick to visit the spot and take stock of the situation.