The B.N.R. Company (Bengal-Nagpur Railway Company) constructed the Howrah Nagpur railways, which ran through Rourkela. The inhabited area around the railway station of Rourkela was declared an urban town in the year 1931. The census report of 1931 reveals that the number of population was 493. By the time a primary school, an office of the forester, a sub-post office, a handful of liquor shops, tea shops, a small health center and restaurants were found around the outlying area of the railway station. Gradually a train line was connected to Birmitrapur and Rourkela and it could avail a status of a junction allowing the settlement of more railway employees. Soon another station at the village Panposh was built 10  km away. The population of Panposh by 1931 was 2,252 almost five times that of Rourkela.