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  1. Home
  2. /Prelims Questions
  3. /Modern History
  4. /Question
Modern History·Easy

With respect to the development of the railways, consider the following statements: 1. Railway construction and operation in India was given to private companies with a guaranteed minimum return of 5 percent. 2. The onus of the investment to be done in the railways was upon the Indian government. Which of the statements given above is/are correct?

With respect to the development of the railways, consider the following statements:

1. Railway construction and operation in India was given to private companies with a guaranteed minimum return of 5 percent.

2. The onus of the investment to be done in the railways was upon the Indian government.

Which of the statements given above is/are correct?

Options

  1. a.

    1 only

    Correct answer
  2. b.

    2 only

  3. c.

    Both 1 and 2

  4. d.

    Neither 1 nor 2

Explanation

The first railway engine that was put on the rails was designed by George Stephenson in England in 1814. Construction of steam driven railways in India was first proposed in 1834 in England.

It was given strong political support by England’s railway promoters, financiers, mercantile houses trading with India and textile manufacturers. It was decided that the Indian railways were to be constructed and operated by private companies, who were guaranteed a minimum return of 5 percent on their capital by the Government of India.

Nearly the entire amount of over Rs. 350 crores invested in the railways was provided by the British investors, Indian capital contributing only a negligible share to it.

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