A recent decision by the Railway Board to transfer the 50 km Palasa-Ichchapuram section from the East Coast Railway (ECoR) to the newly formed South Coast Railway (SCoR) has drawn criticism from both the ruling Bharatiya Janata Party (BJP) and the opposition Biju Janata Dal (BJD) in Odisha. The political parties argue that this move will negatively impact ECoR's revenue, which is crucial for the state's economy. ECoR, headquartered in Bhubaneswar, is recognized as the Railways' largest freight-loading zone, accounting for over 17% of the total freight transported by Indian Railways in the last financial year 2025-26, with a total of 286 million tonnes of freight. The Railway Board maintains that the seven stations in the Palasa-Ichchapuram section, located in Andhra Pradesh’s Srikakulam district, primarily handle passenger traffic and do not significantly contribute to freight revenue. However, the political opposition emphasizes that the reduction of ECoR's jurisdiction undermines its operational capacity and revenue generation potential. The SCoR was established as part of the Andhra Pradesh Reorganisation Act of 2014, with the Union Cabinet approving its formation on February 7, 2025. Both parties are calling for the Railway Board to rescind its decision to preserve ECoR's financial health and operational integrity.