BHUBANESWAR: The state government on Friday asserted that Odisha will not suffer any revenue loss due to the restructuring of South Coast Railway (SCoR) zone. Instead, the state stands to gain significantly from the soon-to-be-operational Rayagada Railway Division.
Dismissing concerns over financial implications, the government said the new Rayagada division will bring substantial administrative and revenue advantages. In particular, the high-revenue Kothavalasa-Kirandul (KK) line will be placed under the jurisdiction of Rayagada division. Despite the line passing through parts of Chhattisgarh and Andhra Pradesh, its inclusion under the East Coast Railway (ECoR) zone will retain its earnings without any loss.
In the wake of protests by Opposition political parties and BJP MP from Berhampur, the chief minister’s office (CMO) came out with a clarification claiming that not a single inch of railway track from Odisha is being transferred to any other state. It maintained that all ongoing and proposed railway projects are designed to reinforce infrastructure within Odisha while also improving inter-state connectivity for broader economic benefits.
Ongoing and proposed projects are aimed at enhancing in-state connectivity while improving inter-state linkages to support economic growth, said the CMO.
The CMO clarified that the Palasa-Ichchapuram section does not have any major originating freight revenue station and its administrative realignment will not adversely impact railway revenues of Odisha. The government has received over Rs 93,000 crore for railway infrastructure development, with annual allocations exceeding Rs 10,000 crore over the past three years, marking a sharp rise compared to earlier periods.
The government said the initiatives reflect a balanced approach to expanding infrastructure while safeguarding Odisha’s financial interests. It added that the developments would help transform the state into a key railway hub, supporting industrial growth, mineral transportation and improved passenger services.