A reasonable quota can be provided for locals from the places under the jurisdiction of the railway division to ensure that backward regions get a representation. No need to make it a per-state basis. Even within states, development is not uniform. Some regions have better education facilities than others and will naturally have a higher presence in the employment area too. What was once a state vs outsiders conflict will just become an internal conflict in the state as one region accuses the other of stealing their jobs.
Everyone has the right to work and live anywhere in the country. That should not be restricted in any circumstances. Instead of creating more barriers, they should be encouraged to work together and...
more... accept people from other regions.