New zones may dent revenue of railways
TNN | Nov 21, 2013, 02.37 AM
HYDERABAD: With the demand for separate railway zones, one in Visakhapatnam and another in Jagdalpur, getting shriller, railway officials and analysts apprehend a huge loss of revenue in this sector.
The Waltair division of the East Coast Railway (Ecor), headquartered in Visakhapatnam, and spread over Odisha and Chhattisgarh, is...
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the biggest contributing division of Ecor. It earns around Rs 5,000 crore in revenue, of which a major portion of Rs 4,300 crore comes from freight earnings, fuelled by transport of minerals from Jagdalpur in Chhattisgarh's Bastar district.
The demand for creation of a new zone in Visakhapatnam has been around for nearly two decades and has gained momentum now with the proposed bifurcation of the state. However, the demand from Jagdalpur to create a new division in the area has also picked up steam in the wake of the proposed new zone.
"The demand from Jagdalpur has been getting stronger. They want a new division in case a railway zone is created in Visakhapatnam. But it is not clear if they would be included in the newly created zone in Visakhapatnam or merged with the Ecor," said a senior railway official.
Leaders from Bastar region said there was a long-standing demand to create a division in Jagdalpur, but declined to comment further in view of the polls in the state.
Meanwhile, the proposed new zone for Visakhapatnam has now broadened to include the Vijaywada and Guntakal divisions of South Central Railway (SCR) as well. Railway analysts feel that the revenue of Visakhapatnam as a separate division would be severely dented if it were to lose Jagdalpur.
However, those fighting for a separate zone in Visakhapatnam say the new zone would benefit from the ports in Coastal Andhra even if Waltair loses Jagdalpur. "Even if Jagdalpur is given to East Coast Railway, the major ports here would fuel trade and bring revenue. Vijayawada division is a major hub bringing in millions of passengers," said Y D Rama Rao, member of Railway Users Committee based in Kakinada.