Shrinking East Coast Railway limits will not affect freight revenues, says Ministry

Following political backlash over a proposal to move seven railway stations under the East Coast Railway (ECoR) to the newly created South Coast Railway zone (SCoR), the Ministry of Railways has clarified that the move will not result in revenue loss on account of freight loading.

The seven stations, Palasa, Summadevi, Mandasa Road, Baruva, Sompeta, Jhadupudi, and Ichchapuram, “are situated in Srikakulam district of Andhra Pradesh, none of these stations are located within Odisha,” a senior official from Indian Railways told The Hindu.

These stations are small to mid-sized, handling primarily passenger traffic. “None of them is a major freight loading point,” the official added. 

ECoR earned ₹29,251.52 crore revenue in 2025-26 from freight loading of 286 metric tonnes (MT), primarily consisting of iron ore, coal, and bauxite, up to 10.43% more that 2024-25 when it earned ₹26,262.59 crore while loading 259.25 MT.

“ECoR is the top earning zone for Indian Railways due to freight loading revenue and this trend will not be affected as pointed out by certain political quarters,” the official added. 

The clarification comes after a political backlash in Odisha following an April 2 communication from the Railway Board which proposed the inclusion of seven railway stations under a 52-km long section, currently under Khurda Road division of ECoR, in the proposed Visakhapatnam division of South Coast Railway (SCoR). 

 “The proposed new boundary between Visakhapatnam division/SCoR and Khurda Road division/ECoR may be advised to the Board’s office at the earliest,” Rameshwer Meena, Executive Director (Efficiency & Research), stated in the communication.  

Opposition parties in Odisha, including the Congress and the Biju Janta Dal (BJD), criticised the decision, saying that ‘shrinking’ of the ECoR jurisdiction will affect its freight earnings. 

“Pass through freight traffic (trains transiting through these stations en route) will continue uninterrupted regardless of which zone’s jurisdiction the stations fall under,” the official said. 

Railway operations are seamless across zonal boundaries. “All existing trains including Palasa – Bhubaneshwar, Palasa – Cuttack and Ichchapuram – Cuttack MEMU/passenger services will continue to operate without any change in schedule, route, or frequency.  This is a technical revision to ensure smooth functioning of the passenger services in Vishakapatnam division,” the official added. 

The modalities of the transfer including staff deployment, are being finalised between ECoR and SCoR. The interests and service conditions of all railway employees will be fully protected as per established norms, the clarification said.