Yes, even I have heard that railways have as of now said no to the creation of further new zones. But at the same time, there was a news article that for the creation of a zone, three divisions must be present in the zone, hence Kerala is pushing for a Coastal zone with divisional headquarters at Mangalore. Thus it will have 3 divisions:Palghat, Trivandrum and Mangalore....if this is realised, i think it would be a win-win propostion for coastal Karnataka and entire Kerala.