Ministry of Railways Clarifies Inclusion of Palasa-Ichchapuram Section in New South Coast Railway Zone

The Ministry of Railways has issued an official clarification addressing concerns raised over the transfer of the Palasa-Ichchapuram railway section to the newly created South Coast Railway (SCoR) zone, headquartered in Visakhapatnam. The move, approved by the Railway Board on April 2, 2026, has sparked debate in Odisha, with some political parties expressing apprehension about potential revenue loss and shrinking jurisdiction of the East Coast Railway (ECoR). However, the Ministry has firmly stated that the adjustment is a purely technical and administrative revision aimed at improving operational efficiency, with no adverse impact on services, revenue, or employees.

The South Coast Railway zone is in the process of becoming fully operational, with its headquarters at Visakhapatnam. As part of streamlining the jurisdiction of the proposed Visakhapatnam division under SCoR, the Railway Board has included the approximately 50-km Palasa-Ichchapuram section, which was previously under the Khurda Road division of ECoR. This section comprises seven stations: Palasa, Summadevi, Mandasa Road, Baruva, Sompeta, Jhadupudi, and Ichchapuram. All seven stations are located in Srikakulam district of Andhra Pradesh and none fall within Odisha territory.

According to the Ministry’s clarification, these stations are primarily small to mid-sized halts that cater mainly to passenger traffic. They do not serve as major freight loading points. Consequently, the revenue of East Coast Railway (ECoR) remains completely unaffected by this administrative shift. Pass-through freight traffic — trains that merely transit through these stations without originating or terminating there — will continue to operate smoothly, irrespective of the zonal jurisdiction.

Railway operations across zonal boundaries in Indian Railways are designed to be seamless. The Ministry has assured that there will be no disruption to any train services. Existing trains, including popular routes such as Palasa–Bhubaneswar, Palasa–Cuttack, and Ichchapuram–Cuttack MEMU and passenger services, will continue to run on the same schedules, routes, and frequencies without any changes.

The decision is described as a technical revision intended to ensure smoother functioning of passenger services under the Visakhapatnam division. Modalities for the transfer, including staff deployment and asset management, are currently being finalised between ECoR and SCoR authorities. The Ministry has emphasised that the interests and service conditions of all railway employees will be fully protected in line with established government norms. No employee will face adverse effects during the transition.

The clarification comes amid reports of opposition from certain political parties in Odisha, who have termed the move as “anti-Odisha” and raised concerns over possible revenue implications for ECoR, which is headquartered in Bhubaneswar. However, the Ministry has reiterated that the Palasa-Ichchapuram stretch does not contribute significantly to originating freight revenue for ECoR. Officials have pointed out that the realignment will actually help in better administrative control and faster development of passenger amenities in the Srikakulam region.

To allay concerns, the Ministry highlighted the Centre’s strong and unwavering commitment to the development of railway infrastructure in Odisha. This is evidenced by record capital expenditure on railway network expansion, modernisation of stations, introduction of new Vande Bharat services, and the creation of a new Rayagada Division under ECoR. These initiatives demonstrate continued focus on improving connectivity and economic growth in the state.

The formation of the South Coast Railway zone is part of a broader restructuring exercise by Indian Railways to enhance operational efficiency, reduce administrative bottlenecks, and provide better services to passengers in the southern and eastern regions. The inclusion of the Palasa-Ichchapuram section under Visakhapatnam division is expected to bring improved focus on local passenger needs, quicker decision-making, and better integration with the growing economic hubs in Andhra Pradesh.

Railway officials have appealed to all stakeholders to view this change as an administrative necessity rather than a loss for any region. “Indian Railways functions as a unified national network where zonal boundaries exist only for better management. Passenger convenience and seamless operations remain our top priority,” a senior official noted.

As the South Coast Railway zone moves closer to full operationalisation, the Ministry of Railways remains confident that the revised jurisdiction will contribute to more efficient rail services across Andhra Pradesh and neighbouring areas, while continuing to support robust development in Odisha.