As many as 15 bogies of a goods train derailed near the Damanjodi railways station in the district on Sunday evening, hitting train services on the route.
Sources said the goods train derailed when it was returning after collecting aluminum powder from Nalco.
Train movement through the Koraput-Rayagada route has been massively hit following the derailment of the train.
The Rourkela-Koraput Express was cancelled while the Hirakhand Express has been diverted. Railway authorities said restoration work is on at the spot and by Monday morning services on the route would be normalised.