All services between Jalandhar and Amritsar remained suspended hours after Dussehra revellers were mowed down by a train near Amritsar, railway officials said.
While some trains are being diverted, many are stranded near Jalandhar, they said.
"Train movement stopped after the accident as local people are sitting on the track," a railway official said.
As of now, two trains - Bhatinda-Jammu Tawi and Jammu Tawi-Bhatinda - have been diverted towards Jalandhar-Pathankot route.
Two trains - Amritsar-Mumbai Golden Temple and Amritsar-Dehradun - are stuck at Amritsar because of the accident, the officials said.
Prime Minister Narendra Modi has approved Rs 2 lakh for the family of the dead and Rs 50,000 for the injured.
Railways has issued helpline numbers, 0183-2223171, 0183-2564485, for the kin of those injured and dead in the accident between Manawala and Ferozpur, where at least 60 people died after being run over by the train coming from Jalandhar to Amritsar at around 7 pm, officials said.
All the dead were Dussehra revellers watching the burning of Ravan effigies near the tracks.
While Punjab Chief Minister Amarinder Singh announced Rs 5 lakh for kin of each of the dead and free treatment for the injured, officials said there was no decision as yet on any compensation from the railways.