2024 · Q78
Consider the following statements about the initial development of railways in India by the British:
- 1Private financial investors for railways would get land free from the British Government in India.
- 2The investors would get a return of 5 percent on their capital from the government if they ran at a loss or secured inadequate profit.
- 3The railways would be jointly managed with the government.
How many of the above statements is/are correct?
General KnowledgeHistory of India
- A1
- B2
- C3
- DNone
Explanation
Statements 1 and 2 are correct: under the guarantee system, private British railway companies got land free of cost from the Government of India and were guaranteed a 5% return on their capital, the government making up any shortfall. Statement 3 is incorrect: the railways were managed by the private companies themselves (the government kept a director on the board and control over routes and gauges), not jointly managed with the government. With two statements correct, the answer is (B). (Cross-checked with Testbook's CDS-I 2024 solutions.)