The Government of India will operationalize the South Coast Railway (SCoR) zone from 1 June 2026, with its headquarters at Visakhapatnam. It will become the 18th railway zone in India (including Kolkata Metro) and aims to reorganise railway administration in Andhra Pradesh under a unified structure. The zone is created under the Railways Act, 1989.
Administrative Structure:
SCoR will consist of four divisions: Vijayawada, Guntur, and Guntakal (transferred from South Central Railway), along with a newly formed Visakhapatnam division carved out of the erstwhile Waltair division. This restructuring centralises railway operations within the state, improving administrative efficiency.
Approval and Establishment: The Union Cabinet granted ex post facto approval for the zone on 7 February 2025, meaning formal approval was given after the decision had already been initiated. The headquarters project at Visakhapatnam received ₹184 crore, with 52.2 acres of land provided by the state government at Mudasarlova. The foundation stone was laid by Narendra Modi in January 2025.

Reorganisation and Associated Changes:
As part of the restructuring, the Waltair division was bifurcated. The Visakhapatnam region is included in SCoR, while the revenue-rich Kothavalasa – Kirandul (KK Line) largely comes under a newly created Rayagada division of East Coast Railway in Odisha. This arrangement addresses concerns over freight revenue distribution and administrative balance.
Operational Significance:
The creation of SCoR is expected to enhance operational efficiency by reducing inter-zonal coordination issues, particularly in connecting ports with their hinterland. It aligns with the broader vision of “One Nation, One Grid” and supports port-led development in key locations such as Visakhapatnam, Kakinada, and Krishnapatnam.
Economic and Policy Importance:
The development of the zone coincides with a record railway budget allocation of around ₹10,134 crore for Andhra Pradesh in 2026, reflecting increased infrastructure focus. It also supports streamlined freight movement, especially from mineral-rich regions, and strengthens the integration of rail networks with economic hubs.
Impact on Existing Zones:
Following the reorganisation, South Central Railway will retain only Secunderabad, Hyderabad, and Nanded divisions. The restructuring marks a significant administrative shift aimed at improving service delivery and regional connectivity in the Indian Railways network.