{"id":89843,"date":"2025-06-01T10:14:45","date_gmt":"2025-06-01T10:14:45","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=89843"},"modified":"2025-06-01T10:14:45","modified_gmt":"2025-06-01T10:14:45","slug":"which-of-the-following-statements-with-regard-to-construction-of-railw","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-with-regard-to-construction-of-railw\/","title":{"rendered":"Which of the following statements with regard to construction of railw"},"content":{"rendered":"<p>Which of the following statements with regard to construction of railways in colonial India by the British companies is\/are NOT true ?<\/p>\n<ul>\n<li>1. The companies were guaranteed a return of 5 per cent on their investment by Government of India<\/li>\n<li>2. The railways were to be managed mainly by the Government<\/li>\n<li>3. There was no system of preferential freight charges<\/li>\n<li>4. The companies were to get the land free from the Government<\/li>\n<\/ul>\n<p>[amp_mcq option1=&#8221;1 and 3&#8243; option2=&#8221;2 and 3 only&#8221; option3=&#8221;4 only&#8221; option4=&#8221;2, 3 and 4&#8243; correct=&#8221;option2&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC CAPF &#8211; 2015<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-capf-2015.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-capf-2015\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe correct option is B.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nLet&#8217;s examine each statement regarding railway construction in colonial India by British companies:<br \/>\n1.  The companies were guaranteed a return of 5 per cent on their investment by Government of India: This is TRUE. Under the &#8216;guarantee system&#8217;, private British companies were encouraged to invest in railways with a guaranteed minimum return, initially 5%, on their invested capital by the Indian government. This system proved costly for the Indian treasury.<br \/>\n2.  The railways were to be managed mainly by the Government: This is NOT TRUE. Initially, the railways constructed under the guarantee system were managed by the private British companies themselves. Government management of railways became more prominent later, after the expiry or purchase of these companies&#8217; contracts.<br \/>\n3.  There was no system of preferential freight charges: This is NOT TRUE. There *was* a system of preferential freight charges which favored the export of raw materials and import of finished goods over the movement of domestic goods within India. This policy harmed Indian industries and promoted the colonial economic pattern.<br \/>\n4.  The companies were to get the land free from the Government: This is TRUE. The land required for railway construction was provided free of cost by the Government of India to the companies.<br \/>\nThe statements that are NOT true are 2 and 3.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nThe guarantee system was a key feature of early railway development in India. While it facilitated rapid construction, its financial terms were heavily skewed in favour of the British companies, leading to significant losses for the Indian government, especially when traffic was low or costs exceeded estimates. The structure of freight rates served colonial interests by facilitating trade with Britain rather than promoting internal Indian markets or industries.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Which of the following statements with regard to construction of railways in colonial India by the British companies is\/are NOT true ? 1. The companies were guaranteed a return of 5 per cent on their investment by Government of India 2. The railways were to be managed mainly by the Government 3. There was no &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Which of the following statements with regard to construction of railw\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-with-regard-to-construction-of-railw\/#more-89843\">Detailed Solution<span class=\"screen-reader-text\">Which of the following statements with regard to construction of railw<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1443,1264,1124],"class_list":["post-89843","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1443","tag-economic-impact-of-british-rule-on-india","tag-modern-history-of-india","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following statements with regard to construction of railw<\/title>\n<meta name=\"description\" content=\"The correct option is B. Let&#039;s examine each statement regarding railway construction in colonial India by British companies: 1. The companies were guaranteed a return of 5 per cent on their investment by Government of India: This is TRUE. Under the &#039;guarantee system&#039;, private British companies were encouraged to invest in railways with a guaranteed minimum return, initially 5%, on their invested capital by the Indian government. This system proved costly for the Indian treasury. 2. The railways were to be managed mainly by the Government: This is NOT TRUE. Initially, the railways constructed under the guarantee system were managed by the private British companies themselves. Government management of railways became more prominent later, after the expiry or purchase of these companies&#039; contracts. 3. There was no system of preferential freight charges: This is NOT TRUE. There *was* a system of preferential freight charges which favored the export of raw materials and import of finished goods over the movement of domestic goods within India. This policy harmed Indian industries and promoted the colonial economic pattern. 4. The companies were to get the land free from the Government: This is TRUE. The land required for railway construction was provided free of cost by the Government of India to the companies. The statements that are NOT true are 2 and 3.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-with-regard-to-construction-of-railw\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following statements with regard to construction of railw\" \/>\n<meta property=\"og:description\" content=\"The correct option is B. Let&#039;s examine each statement regarding railway construction in colonial India by British companies: 1. The companies were guaranteed a return of 5 per cent on their investment by Government of India: This is TRUE. Under the &#039;guarantee system&#039;, private British companies were encouraged to invest in railways with a guaranteed minimum return, initially 5%, on their invested capital by the Indian government. This system proved costly for the Indian treasury. 2. The railways were to be managed mainly by the Government: This is NOT TRUE. Initially, the railways constructed under the guarantee system were managed by the private British companies themselves. Government management of railways became more prominent later, after the expiry or purchase of these companies&#039; contracts. 3. There was no system of preferential freight charges: This is NOT TRUE. There *was* a system of preferential freight charges which favored the export of raw materials and import of finished goods over the movement of domestic goods within India. This policy harmed Indian industries and promoted the colonial economic pattern. 4. The companies were to get the land free from the Government: This is TRUE. The land required for railway construction was provided free of cost by the Government of India to the companies. The statements that are NOT true are 2 and 3.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-with-regard-to-construction-of-railw\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:14:45+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which of the following statements with regard to construction of railw","description":"The correct option is B. Let's examine each statement regarding railway construction in colonial India by British companies: 1. The companies were guaranteed a return of 5 per cent on their investment by Government of India: This is TRUE. Under the 'guarantee system', private British companies were encouraged to invest in railways with a guaranteed minimum return, initially 5%, on their invested capital by the Indian government. This system proved costly for the Indian treasury. 2. The railways were to be managed mainly by the Government: This is NOT TRUE. Initially, the railways constructed under the guarantee system were managed by the private British companies themselves. Government management of railways became more prominent later, after the expiry or purchase of these companies' contracts. 3. There was no system of preferential freight charges: This is NOT TRUE. There *was* a system of preferential freight charges which favored the export of raw materials and import of finished goods over the movement of domestic goods within India. This policy harmed Indian industries and promoted the colonial economic pattern. 4. The companies were to get the land free from the Government: This is TRUE. The land required for railway construction was provided free of cost by the Government of India to the companies. The statements that are NOT true are 2 and 3.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-with-regard-to-construction-of-railw\/","og_locale":"en_US","og_type":"article","og_title":"Which of the following statements with regard to construction of railw","og_description":"The correct option is B. Let's examine each statement regarding railway construction in colonial India by British companies: 1. The companies were guaranteed a return of 5 per cent on their investment by Government of India: This is TRUE. Under the 'guarantee system', private British companies were encouraged to invest in railways with a guaranteed minimum return, initially 5%, on their invested capital by the Indian government. This system proved costly for the Indian treasury. 2. The railways were to be managed mainly by the Government: This is NOT TRUE. Initially, the railways constructed under the guarantee system were managed by the private British companies themselves. Government management of railways became more prominent later, after the expiry or purchase of these companies' contracts. 3. There was no system of preferential freight charges: This is NOT TRUE. There *was* a system of preferential freight charges which favored the export of raw materials and import of finished goods over the movement of domestic goods within India. This policy harmed Indian industries and promoted the colonial economic pattern. 4. The companies were to get the land free from the Government: This is TRUE. The land required for railway construction was provided free of cost by the Government of India to the companies. The statements that are NOT true are 2 and 3.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-with-regard-to-construction-of-railw\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:14:45+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-with-regard-to-construction-of-railw\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-with-regard-to-construction-of-railw\/","name":"Which of the following statements with regard to construction of railw","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:14:45+00:00","dateModified":"2025-06-01T10:14:45+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The correct option is B. Let's examine each statement regarding railway construction in colonial India by British companies: 1. The companies were guaranteed a return of 5 per cent on their investment by Government of India: This is TRUE. Under the 'guarantee system', private British companies were encouraged to invest in railways with a guaranteed minimum return, initially 5%, on their invested capital by the Indian government. This system proved costly for the Indian treasury. 2. The railways were to be managed mainly by the Government: This is NOT TRUE. Initially, the railways constructed under the guarantee system were managed by the private British companies themselves. Government management of railways became more prominent later, after the expiry or purchase of these companies' contracts. 3. There was no system of preferential freight charges: This is NOT TRUE. There *was* a system of preferential freight charges which favored the export of raw materials and import of finished goods over the movement of domestic goods within India. This policy harmed Indian industries and promoted the colonial economic pattern. 4. The companies were to get the land free from the Government: This is TRUE. The land required for railway construction was provided free of cost by the Government of India to the companies. The statements that are NOT true are 2 and 3.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-with-regard-to-construction-of-railw\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-with-regard-to-construction-of-railw\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-with-regard-to-construction-of-railw\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CAPF","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-capf\/"},{"@type":"ListItem","position":3,"name":"Which of the following statements with regard to construction of railw"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/89843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=89843"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/89843\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=89843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=89843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=89843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}