2015 · Q6
Which of the following statements with regard to construction of railways in colonial India by the British companies is/are not true?
- 1The companies were guaranteed a return of 5% on their investment by Government of India.
- 2The railways were to be managed mainly by the Government.
- 3There was no system of preferential freight charges.
- 4The companies were to get the land free from the Government.
Select the correct answer using the code given below.
history-of-indiaeuropeans-british-expansion
- A1 and 3
- B2 and 3
- COnly 4
- D2, 3 and 4
Explanation
Under the guarantee system the British companies were assured a 5 percent return on investment (statement 1 true) and received land free from the Government (statement 4 true). But the railways were managed mainly by the companies themselves, not by the Government (statement 2 not true), and there was a system of preferential freight charges favouring British imports and port traffic (statement 3 not true). The question asks which statements are not true, so the answer is statements 2 and 3.