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Picture Courtesy: INDIAN EXPRESS

Context:

The Union Cabinet has approved the creation of the South Coast Railway (SCoR) Zone, marking the 18th zone of Indian Railways, with its headquarters in Visakhapatnam

Why bifurcation?

The Union Cabinet approved the bifurcation to establish the new South Coast Railway (SCoR) Zone, as mandated by the Andhra Pradesh Reorganisation Act of 2014. This Act required Indian Railways to examine the creation of a new railway zone following the formation of Telangana.

The SCoR Zone, the 18th zone of Indian Railways, aims to improve operational efficiency, cater to growing passenger and freight demands, and support industrial, agricultural, and tourism growth in Andhra Pradesh.

The Waltair Division, a major revenue-generating area, split into two parts: the Visakhapatnam Division under SCoR and a new Rayagada Division under the East Coast Railway. This move aligns with the strategic goal of enhancing logistics for ports like Visakhapatnam and Krishnapatnam while boosting tourism in the region.

This decision has faced criticism from Odisha's political leaders, who argue that transferring a revenue-generating part of ECoR to the new SCoR Zone could adversely impact Odisha's economy.

About Waltair Division

The Waltair Division is a critical revenue source for Railways due to its freight traffic linked to the mining and steel industries in Odisha and Chhattisgarh.

In the 2023-24 financial year, the East Coast Railway (ECoR), which includes Waltair, achieved record freight loading of 250 million tonnes, with Waltair contributing 74.66 million tonnes.

By bifurcating Waltair, the government aims to balance regional development with operational efficiency.