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During the year 1855-56, after the East Indian Railway had extended the line up
to Raniganj, 100,000 tons of coal were transported from Raniganj to Calcutta. By
1860, however, 50 collieries were functioning, producing about 282,000 tons of
coal annually in the Raniganj area.
In order to meet foreign competition and to increase the consumption of Indian
coal by other railways and by various mills and factories, the East Indian
Railway reduced the rate for leads over 300 miles from 5.4 to 4.5 pies per ton
mile. As the production of coal increased, leading simultaneously to an increase
in the demand for Indian coal, and gradual extinction of foreign imports,
haulage rates continued to be progressively reduced by the railways.
Eastern Railway has been one of the major Railways. Before creation of E. C.Rly.,
this Railway used to load about 80 Million Tonnes of freight every year which
was about 19% of the total loading of Indian Railways.
Apart from coal and coke, this Railway also transports Iron and Steel from
Durgapur and Burnpur, Bauxite from Stone from Pakur and Jamalpur, Cement from Durgapur and host of other merchandise including Jute, Tea, Textile,
Automobiles, etc.