The Birur-Shimoga Railway had been taken back into MSR management and operation from 1919 onwards (previously by the Madras and Southern Mahratta Railway) and there was motivation to expand the network within Mysore State. An extension to Talguppa would give access to the forest areas and also to Jog Falls.
Construction commenced from Shimoga in 1930 and the Shimoga-Anandapuram Railway line had reached Anandapuram in 1934 and Sagara in 1938. Reaching Talguppe in 1939 it enabled access to the Jog Falls and to transport wooden logs from the the forests of the Malnad region to make wooden sleepers 
In 1939, the opening of the Shimoga-Talguppa Railway enabled wood from the Malnad forests to be transported to the Mysore Iron and Steel works at Bhadravathi to be used as a furnace fuel in its Works 
For details and map of this railway and tramways in this region see Tramways in Mysore State