Konark Balukhand Sanctuary was notified as a protected area in 1984. Under the Sanctuary Act, 1972, boundary demarcation was required within two years but remains unfinalized after 42 years.

Hundreds of families across 11 villages from Mohinipur Mouza in Puri to Udaykani Mouza in Astaranga Block own land within the sanctuary. Residents face restrictions preventing them from selling, mortgaging, or utilizing ancestral land. The uncertainty has affected three generations and impacted livelihoods. Lack of proper land records prevented access to caste and income certificates, affecting education and government benefits.

Residents submitted multiple applications, petitions, and memorandums, and pursued the matter in High Court at considerable expense. A High Court direction to resolve by December 31, 2024 remained pending. Puri District Collector stated the issue is likely resolved soon pending Forest Department and Chief Wildlife Warden approval.

During the 1970s, the Forest Department planted forests along Puri's coastline to protect from saline sea winds and conserve biodiversity. The forest became habitat for blackbucks, wolves, foxes and other wildlife.

The Odisha government proposed to the East Coast Railway (ECoR) reconsidering the alignment of the proposed Puri-Konark new railway line to route it through Balukhand reserve forest with minimum ecological interference, contrary to the 32-km route approved by Prime Minister Narendra Modi last year at an estimated cost of ₹492 crore.

The proposal was discussed at a review meeting chaired by development commissioner Anu Garg on September 23. The state government argued that minimal-impact designs could allow the railway to pass through the reserve forest and eco-sensitive zone without significant damage. The proposed new alignment would run along the coastline to provide scenic views and attract tourists to heritage sites.

ECoR was instructed to continue with the current 32.02-km alignment bypassing Balukhand reserve forest until decided otherwise. Additional options discussed include: a spur line from the main track to marine drive; metro rail, monorail, or cable car options for tourist connectivity between Puri and Konark; railway extension from Puri station to the Shree Jagannath International Airport (SJIA) at Sipasarubali via Malatipatapur for multi-modal airport connectivity; connectivity exploration for Astaranga port to the proposed Bhubaneswar-Konark line; and development of nearby stations like Konark as satellite stations and coaching depots to manage Rath Yatra congestion at Puri station.

ECoR general manager Parmeshwar Funkwal cautioned that further alignment modifications could delay the project timeline.