Transport, thus is an important infrastructure in the economy of India. It assumes a greater role in developing countries since all the sectors of the development are closely dependent upon the existence of suitable transportation network. The history of rail transport in India began in the mid-nineteenth century. In 1842, there was not a single kilometer of railway line in India. At that point of time, the railways represented a capital value of some British Sterling Pounds 687 million, and carried over 620 million passengers and approximately 90 million tons of goods a year. The railways in India were a group of privately owned companies. The military engineers of the East India Company, later of the British Indian Army, contributed to the birth and growth of the railways which gradually became the responsibility of civilian technocrats and engineers. However, construction and operation of rail transportation in the North West Frontier Province and in foreign nations during war or for military purposes was the responsibility of the military engineers. In 1901, an early Railway Board was constituted, but the powers were formally invested under Lord Curzon. It served under the Department of Commerce and Industry and had a government railway official serving as chairman, and a railway manager from England and an agent of one of the company railways as the other two members. For the first time in its history, the Railways began to make a profit. In 1907, almost all the rail companies were taken over by the government.