The building of railways

Under the Nizam government, railway lines were established and extended in the 1880s to connect the State

his article is in continuation to the last article on reforms introduced by Salar Jung in Railways, Communication and Coal Mines areas.

The necessity for doing something to relieve the exchequer from this incubus was realised early by Salar Jung. The only plan that seemed practicable and conducive to the end was the extension of the railway to the northern or eastern frontier, to connect with the central India system on one side and practically to get access to the sea on the other. The scheme had the additional advantage of tapping the great mineral fields towards the Godavari river basin.

The Nizam’s Government was impressed by the fact that some extensions would greatly benefit both the State and the country. It sent Syed Abdul Haq to England in April 1882, to negotiate with houses of undoubted financial standing for the purpose of floating a company on the lines of the terms offered by the Bombay syndicate.

He negotiated with Messrs Morton, Rose & Co., Merchants of London, who consented to float the company, if the government would guarantee interest at 5 per cent. Syed Abdul Haq also negotiated with the National Provincial Bank of England and on December 27, 1883 and concluded an agreement with them. Subsequently, in January 1884, a company was formed in London called His Highness — the Nizam’s Guaranteed State Railway Company Limited with a capital of four-and-a-half million terming on which the Hyderabad government guaranteed the shareholders an interest at 5 per cent for a period of 20 years and as a security for the punctual payment of guaranteed interest.

By this agreement, the company acquired a 99 years working lease of the existing line from Wadi to Secunderabad. Next, they undertook to construct, maintain and work for 99 years for a broad gauge line from Hyderabad to Bezawada, together with a branch line from Dornakal to Singareni Collieries. Another line was to be constructed, which, branching off from Warangal would run towards the north-western frontier to Chanda, a distance of 160 miles. The latter was to be a connecting link between the railway systems of northern and southern India, besides opening up a backward portion of the Nizam’s Dominions.

This line, after completion, became a great boon to the public. The Hyderabad-Godavari Valley Railway ran from Secunderabad to Ankai, a station on the Dhone and Manmad line. The new line passed through the districts of Medak, Indur, Nanded, Parbhani and Aurangabad. These districts were in the richest and best cultivated parts of the Nizam’s Dominions; it was, therefore, “confidently anticipated that a cheaply constructed line will prove a financial success, as well as be of immense benefit to the trade of the country”.

Hyderabad was connected through the electric telegraph system for the first time with Bombay and Kurnool in 1856-57 CE and Salar Jung made use of the device for official purpose. Telegraphic lines were opened by the Government of India according to the Agreement of 1870. A regular postal communication between the capital city of Hyderabad and the districts was established. In 1869, the postal department was reorganised and the office of Post Master-General was established in the metropolis to supervise, direct and control the postal arrangement in the entire Deewani territory.
A regular system of daily delivery by means of postal runners was also established. Different types of stamps ranging from half anna to eight annas were printed and introduced. In 1882 CE, a postal agreement was signed between the Nizam’s Government and the British Government for mutual exchange of correspondence between the post offices of the two governments.

The Hyderabad Deccan Mining Company was a London-based enterprise in which the Hyderabad government held 75 per cent of its capital. The lease of the Singareni Coal Fields to the Hyderabad (Deccan) Company Limited was finally executed on September 12, 1893.

To begin with, it extracted coal in Warangal district. The coal traffic from Singareni, which in 1893 was 1.18 lakh tons, amounted to 2.07 lakh tons in 1894; the earnings under this head had risen from Rs 5.73 lakh to Rs 9.25 lakh in the same period.
The coal was consumed in large quantities by the Great Indian Peninsula Railways. It was also sent to Madras by canal from Bezawada, and as an experiment, a consignment of about 17,000 tons was also sent to Bombay. The Company increased its production gradually.

 

A railway line between Warangal and Chanda was constructed to be a connecting link between the railway systems of northern and southern India

 

To be continued…

Prof. Adapa Satyanarayana
Retired Professor
Department of History, OU
Ph. 9573405551