Company Rule in India - Railways

Railways

The first inter-city railway service in England, the Stockton-Darlington railway, had been established in 1825; in the following decade other inter-city railways were rapidly constructed between cities in England. In 1845, the Court of Directors of the East India Company, forwarded to the Governor-General of India, Lord Dalhousie, a number of applications they had received from private contractors in England for the construction of a wide ranging railway network in India, and requested a feasibility report. They added that, in their view, the enterprise would be profitable only if large sums of money could be raised for the construction. The Court was concerned that in addition to the usual difficulties encountered in the construction of this new form of transportation, India might present some unique problems, among which they counted floods, tropical storms in coastal areas, damage by "insects and luxuriant tropical vegetation," and the difficulty of finding qualified technicians at a reasonable cost. It was suggested, therefore, that three experimental lines be constructed and their performance evaluated.

Contracts were awarded in 1849 to the East Indian Railway Company to construct a 120-mile railway from Howrah-Calcutta to Raniganj; to the Great Indian Peninsular Railway Company for a service from Bombay to Kalyan, thirty miles away; and to the Madras Railway Company for a line from Madras city to Arkonam, a distance of some thirty nine miles. Although construction began first, in 1849, on the East Indian Railways line, with an outlay of £1 million, it was the first-leg of the Bombay-Kalyan line—a 21-mile stretch from Bombay to Thane—that, in 1853, was the first to be completed (see picture below).

The feasibility of a train network in India was comprehensively discussed by Lord Dalhousie in his Railway minute of 1853. The Governor-General vigorously advocated the quick and widespread introduction of railways in India, pointing to their political, social, and economic advantages. He recommended that a network of trunk lines be first constructed connecting the inland regions of each presidency with its chief port as well as each presidency with several others. His recommended trunk lines included the following ones: (i) from Calcutta, in the Bengal Presidency, on the eastern coast to Lahore in the north-western region of the Punjab, annexed just three years before; (ii) from Agra in north-central India (in, what was still being called North-Western Provinces) to Bombay city on the western coast; (iii) from Bombay to Madras city on the southeastern coast; and (iv) from Madras to the southwestern Malabar coast (see map above). The proposal was soon accepted by the Court of Directors.

During this time work had been proceeding on the experimental lines as well. The first leg of the East Indian Railway line, a broad gauge railway, from Howrah to Pandua, was opened in 1854 (see picture of locomotive below), and the entire line up to Raniganj would become functional by the time of the Indian rebellion of 1857. The Great Indian Peninsular Railway was permitted to extend its experimental line to Poona. This extension required planning for the steep rise in the Bor Ghat valley in the Western Ghats, a section 15¾ miles long with an ascent of 1,831 feet. Construction began in 1856 and was completed in 1863, and, in the end, the line required a total of twenty five tunnels and fifteen miles of gradients (inclines) of 1 in 50 or steeper, the most extreme being the Bor Ghat Incline, a distance of 1¾ miles at a gradient of 1 in 37 (see picture above).

Each of the three companies (and later five others that were given contracts in 1859) was joint stock company domiciled in England with its financial capital raised in pound sterling. Each company was guaranteed a 5 per cent return on its capital outlay and, in addition, a share of half the profits. Although the Government of India had no capital expenditure other than the provision of the underlying land free of charge, it had the onus of continuing to provide the 5 percent return in the event of net loss, and soon all anticipation of profits would fall by the wayside as the outlays would mount.

The technology of railway construction was still new and there was no railway engineering expertise in India; consequently, all engineers had to be brought in from England. These engineers were unfamiliar not only with the language and culture of India, but also with the physical aspect of the land itself and its concomitant engineering requirements. Moreover, never before had such a large and complex construction project been undertaken in India, and no pool of semi-skilled labour was already organized to aid the engineers. The work, therefore, proceeded in fits and starts—many practical trials followed by a final construction that was undertaken with great caution and care—producing an outcome that was later criticized as being "built to a standard which was far in excess of the needs to the time." The Government of India's administrators, moreover, made up in their attention to the fine details of expenditure and management what they lacked in professional expertise. The resulting delays soon led to the appointment of a Committee of the House of Commons in 1857–58 to investigate the matter. However, by the time the Committee concluded that all parties needed to honour the spirit rather than the letter of the contracts, Company rule in India had ended.

Although, railway construction had barely begun in the last years of this rule, its foundations had been laid, and it would proceed apace for much of the next half century. By the turn of the 20th century, India would have over 28,000 miles of railways connecting most interior regions to the ports of Karachi, Bombay, Madras, Calcutta, Chittagong, and Rangoon, and together they would constitute the fourth-largest railway network in the world.