Q. Consider the following statements about Railways in India:
1. Lord Dalhousie started the “guarantee system” by which the railway companies were guaranteed a minimum interest of five percent on their investment.
2. Railway lines connecting from Calcutta to the Raniganj coal-fields was opened in 1854.
Which of the statements given above is/are correct?
Railways
The introduction railways in India inaugurated a new economic era. There were three major reasons for the British to take interest in its quick development. The first reason was commercial. The second main reason was administrative. The third reason was defense. At the time of revolt and disturbance, movement of the forces was much easier through railways. Lord Dalhousie’s contribution in the development of railways is worth commending. In 1853, he penned his Railway Minute formulating the future policy of railways in India. He started the “guarantee system” by which the railway companies were guaranteed a minimum interest of five percent on their investment. The government retained the right of buying the railway at the end of the period of contract. The first railway line connecting Bombay with Thane was opened in 1853. Railway lines connecting from Calcutta to the Raniganj coal-fields was opened in 1854 and from Madras to Arakkonam in 1856.
Source: Tamil Nadu Board Class 12
