Establishment of new Railway Zone in Andhra Pradesh
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAJYA SABHA
QUESTION NO 2529
ANSWERED ON 16.03.2025
Establishment of new Railway Zone in Andhra Pradesh
2529 Shri C.M. Ramesh
Will the Minister of RAILWAYS be pleased to state :-
(a) the reasons Ministry is not revealing recommendations made by the Committee constituted to look into the establishment of a new Railway Zone in Andhra Pradesh as mandated by the Andhra Pradesh Reorganisation Act, 2014;
(b) whether any State is opposing this move; and
(c) if so, the details of such State (s) and the reasons therefor?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI RAJEN GOHAIN)
(a) to (c): In view of the complexities involved in the exercise, the Report of the Committee constituted to inter-alia examine the feasibility of establishing a new Railway Zone, is under further detailed examination in the Ministry of Railways.
Here’s the most up-to-date overview of the establishment of a new railway zone in Andhra Pradesh:
Contents
🚆 South Coast Railway Zone — Andhra Pradesh’s 18th Railway Zone
✔️ Cabinet Approval & Background
- The Union Cabinet has granted ex-post facto approval for a new zone named South Coast Railway (SCoR), headquartered in Visakhapatnam, Andhra Pradesh, fulfilling a commitment under the Andhra Pradesh Reorganisation Act, 2025
- The foundation stone for the zone’s headquarters was laid by Prime Minister Modi in January 2025, and cabinet approval followed in February 2025
📂 Organizational Restructuring
- The zone will include three divisions: Vijayawada, Guntur, and Guntakal, all formerly part of South Central Railway. Additionally, the Waltair division (previously under East Coast Railway) has been restructured:
- The Andhra Pradesh–based part becomes the new Visakhapatnam Railway Division under SCoR.
- The Odisha-based portion becomes the Rayagada Division, under East Coast Railway
🏗️ Infrastructure & Implementation Timeline
- A 149-crore tender was floated in late 2025 to build the zone’s headquarters in Visakhapatnam—a multi-storey complex on a 50-acre site near Mudasarlova
- Operational readiness is underway, though a formal notification for full operationalization is still pending as of mid-2025
⚙️ Significance & Strategic Impacts
- Purpose: Streamline administrative control, improve regional service delivery, and boost freight/logistics efficiency for major ports like Visakhapatnam, Kakinada, and Krishnapatnam
- Revenue Concerns: The former Waltair division was ECoR’s high-earning unit (nearly 50% of ECoR revenue in FY 2023–24). East Odisha politicians have expressed concern over fiscal impacts following the carve-out
- Criticism: A Railway Board internal report had previously warned that forming state-centric zones could erode Indian Railways’ unified structure and national perspective
📊 At-a-Glance Summary
| Feature | Details |
|---|---|
| Zone Name | South Coast Railway (SCoR) — 18th Indian Railways zone |
| HQ Location | Visakhapatnam, Andhra Pradesh |
| Effective Date | Cabinet approval in Feb 2025, foundational work from Jan 2025 |
| Divisions Included | Vijayawada, Guntur, Guntakal → from SCR; Waltair → split into Visakhapatnam (part) and Rayagada (Odisha part) |
| Major Developments | Tender issued for HQ building (₹149 cr); formal notification pending |
| Strategic Benefits | Improved logistics, focused administration, port efficiency |
| Contentions / Risks | Concerns over ECoR revenue loss, internal objections over zonal fragmentation |
✅ What’s Next?
- Watch for official notification and operational rollout from the Railway Ministry.
- Construction progress on the Visakhapatnam headquarters and its 149-cr tender is underway
- Stakeholder dialogues are likely to continue in Odisha over ECoR’s divestiture, while Andhra Pradesh officials push forward
Would you like help tracking developments such as division guidelines, timelines for the operational launch of SCoR, or broader discussions around administrative changes in Indian Railways?