The incident occured at around 6:44 am, damaging the railway station building as well.
Relief teams and railway officials were rushed to the site right after the incident occurred. A rescue operation is currently underway.
Divisional Railway Manager (DRM) Khurda Road and other Branch officers rushed to the accident spot for relief work. Both rail lines have been blocked, informed officials.
However, some trains have been cancelled and few diverted due to the derailment.
Trains including Howrah-Bhubaneswar Janshatabdi Express, Shalimar-Puri Express, Shalimar-Hyderabad Express, Cuttack-Bhadrak-Cuttack Passenger Special, Bhubaneswar-Balasore Passenger Special and several others have been cancelled.
Meanwhile, Chief Minister Naveen Patnaik expressed his condolences on the loss of two lives in the accident.
The chief minister has also announced an ex-gratia of Rs 2 lakhs each to the next of kin of deceased.
Naveen Patnaik also directed the administration to expedite the rescue operations and provide adequate treatment for the injured persons.
On the other hand, the Ministry of Railways also announced an ex-gratia to the victims of the unfortunate accident.
An amount of Rs 5 lakhs has been announced to kin of each deceased, Rs 1 lakh each to persons who sustained grevious injuries and Rs 25,000 each to the persons who sustained minor injuries.