Central Neglect Strikes Odisha Hard: BJP Govt Gifts Palasa–Ichchapuram Rail Section to Andhra Pradesh, Triggering Massive Revenue Loss for Odisha
Pradeep Kumar Panda Economist Darshan Samikhya Bhubaneswar
In yet another glaring example of the BJP-led Central Government’s blatant neglect of Odisha’s railway interests, the Railway Board on April 2, 2026, quietly transferred the strategically vital Palasa–Ichchapuram section from the East Coast Railway (ECoR) headquartered in Bhubaneswar to the proposed South Coast Railway (SCoR) zone in Visakhapatnam, Andhra Pradesh. This move, which shrinks ECoR’s jurisdiction and directly hits Odisha’s revenue, exposes the Centre’s continued bias towards Andhra Pradesh at the expense of the mineral-rich, underdeveloped state of Odisha.
The official communication from the Railway Board, issued on April 2, describes the transfer as a mere “partial modification” following a review of territorial jurisdiction. The Competent Authority has approved shifting the approximately 50-km Palasa–Ichchapuram stretch — a key segment of the busy Howrah–Chennai main line — from ECoR’s Khurda Road Division to the Visakhapatnam Division of the upcoming SCoR zone. The Railway Board has directed the General Managers of both ECoR (Bhubaneswar) and SCoR (Visakhapatnam) to ensure a smooth transition.
Seven stations have been handed over lock, stock, and barrel: Palasa (a major station serving southern Odisha’s Gajapati district), Sompeta, Baruva, Mandasa Road, Jhadupudi, Summadevi, and Ichchapuram (in Srikakulam district of Andhra Pradesh). This border region serves both states for passenger and freight traffic, but Odisha stands to lose the most.
This is not an isolated incident. It fits into the broader restructuring of the old Waltair Division since 2024–25, where parts were bifurcated — some going to SCoR while a new Rayagada Division was created under ECoR in Odisha. But the latest order is a direct blow to southern Odisha.
Odisha has every reason to be furious. The Palasa–Ichchapuram stretch is strategically important on the coastal corridor and generates significant passenger earnings along with freight traffic. With ECoR having earned around ₹23,796 crore in FY 2024-25, this transfer adds to the cumulative revenue erosion that the state has been protesting since late 2024. Earlier fears centred on the freight-heavy KK Line (Kothavalasa–Kirandul) linked to mineral-rich areas; now even this passenger-heavy coastal section is being snatched away.
Local sentiment is boiling over. Many in Odisha see these repeated transfers as the Centre prioritising Andhra Pradesh’s long-standing demand for a dedicated SCoR zone over Odisha’s legitimate interests. Concerns are mounting over the future of infrastructure projects — doubling and tripling of tracks, station upgrades, and new amenities in southern Odisha. Maintenance, operations, and decision-making will now shift away from Bhubaneswar, weakening ECoR’s bargaining power for funds and new trains for the state.
The Biju Janata Dal (BJD) has rightly termed the move as favouring Andhra Pradesh at Odisha’s expense. The party has long demanded compensation or retention of revenue-generating sections for ECoR. Yet, the BJP Odisha Government — which claims to be the Centre’s strongest ally — has remained conspicuously silent. Where is the much-touted “double-engine” government when it comes to protecting Odisha’s rail assets? Instead of raising a strong voice in the state assembly or with the Railway Minister, the BJP leadership in Odisha appears to have surrendered Odisha’s interests to appease the Centre’s Andhra-centric agenda.
This is classic Central neglect under the BJP regime. While the Centre boasts record railway allocations for Odisha, it simultaneously carves out revenue-yielding sections that could have strengthened ECoR. Palasa station, which serves thousands of passengers from Gajapati and neighbouring districts, now falls under Andhra Pradesh’s administrative control. Future projects, amenities, and even ticket-checking revenue will suffer.
The timing could not be more ironic. Just as SCoR is being operationalised to please Andhra Pradesh, Odisha — which contributes heavily to national freight through its ports and minerals — is being short-changed. This is not development; this is deliberate division and discrimination.
Odisha deserves better. The BJP Central Government must immediately review and reverse this arbitrary transfer. The BJP Odisha unit must break its silence and fight for the state instead of playing second fiddle. If not, the people of Odisha will not forget this betrayal when they cast their votes.
The Palasa–Ichchapuram handover is not just a railway reshuffle — it is a political message that under the BJP, Odisha’s interests will always take a backseat to neighbouring states. Enough is enough. The state must unite to protect what belongs to it.
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