The post office agreed late last week to clear up about $10 million in debts owed to the Railway Ministry.
He said that expenses for the treatment of those seriously injured would be borne by the Railway Ministry.
The Railway Ministry expects to start work on the project by November 2013.
The Russian Railway Ministry has set aside $250 million to finance the project.
Like many other government offices, the Railway Ministry was headed by technocrats.
Before 2011 the Railway Ministry acted as its own regulator and was virtually unsupervised by the central government.
Post office officials say they stopped the practice after the Russian Railway Ministry reduced the number of cars available for mail.
A proposal has also been sent to Railway Ministry to develop it as a Coaching complex in near future.
Chitpur was decided upon finally and approved by the Railway Ministry in 2003-04.
These two routes were sanctioned by Railway Ministry in year 1971, but the later route is still not constructed.