A freight train derailed and nearly crashed into homes, causing panic among residents in India.

Authorities reported that the incident occurred during shunting operations in Rourkela, Odisha, on Wednesday, February 5, around 6 am.

Three wagons came off the tracks, damaging a parked autorickshaw and a nearby shop.

Residents were alarmed when one of the carriages entered the residential area after breaching the wall of the railway yard.

Witnesses said that if the train had moved just five metres further, it could have collided with nearby huts, potentially causing a disaster.

The incident disrupted traffic between the Malgodown level crossing and Basanti Colony Road.

Authorities said the driver is believed to have fled the scene.

No injuries were reported, and an investigation into the derailment has been launched.