Indian Express has a nice article on the history of Parlakhemundi light railway. Following are some excerpts.

Paralakhemedi Light Railway (PLR) was two feet six inches gauge railway. It was the brainchild of the erstwhile Raja of Paralakhemedi. The Kimedi country, consisting of Paralakhemedi, Paddakimedi and Chinna Kimedi, was under a single ruler till 1607. Paralakhemedi came under the British influence in 1768.

East Coast Railway came into existence in the year 1893 with the construction of the Cuttack-Khurda Road-Puri line, covering a distance of 96 kms and its subsequent link along the East Coast up to Vijayawada — junction point of Southern Maratha Railway and Nizam’s Guaranteed State Railway. As a result, a stretch of 1280 kms of East Coast Railway, covering the entire coastal stretch of Cuttack, Khurda Road, Puri, Palasa, Vizianagaram, Visakhapatnam, Kakinada, Rajahmundry, Vijayawada, was opened for traffic between 1893 to 1896. East Coast Railway brought rail line to Naupada in 1894. The Raja of Paralakhemedi decided to connect his capital with Naupada, which was only 40 kms away. With the government giving sanction in 1898, work began in full earnest. The line was opened to traffic in 1900. This railway line was built at a cost of Rs 7 lakh.

Due to a change in the policy of the British Government, the Bengal Nagpur Railway, popularly known as the B.N.R, took over the northern section of East Coast Railway from Vizianagaram to Cuttack, including the Branch Line of Puri, by 23-01-1902. Accordingly, the working of the PLR was taken over by the Bengal-Nagpur Railway in 1902. In the first few years, the PLR had incurred losses but after 1910, it started making marginal profits and after 1924-25, the profits increased. This motivated the Raja to extend the line to Gunupur in two phases in 1929 and 1931. There were now a total of ten stations between Naupada and Gunupur. Tekkali, Paddasan, Temburu, Ganguvada, Patapatnam, Paralakhemedi, Kashinagar, Lihuri, Bansidhara and Palasingi.

The management of BNR was taken over by the Government of India in October 1944. On 14-04-1952, at the time of the re-grouping of the Indian Railways it became part of the Eastern Railway. The merger of B.N.R. into Eastern Railway, however, did not last long and on 01-08-1955 it was merged with newly constituted South Eastern Railway. During the SER centenary celebrations in 1987, set of four postage stamps were released. One of the stamps featured the PL 691 locomotive.

The standard type of locomotive on PLR was the 20 ton 0-6-4 tank locomotive with small (27 inch diameter) coupled wheels and an axle load of only 4.75 tons. …

The foundation-stone was finally laid for the Naupada-Gunupur gauge conversion work at Naupada on September 27, 2002. With effect from April 1, 2003, PLR became a part of the newly formed East Coast Railway. The line was finally closed for gauge conversion on June 9, 2004.

— VIKAS SINGH, RAIL ENTHUSIAST
Courtesy National Rail Museum