The capital to set it up would be provided by the Nizam but will be constructed and operated by Government of India through British Resident at Hyderabad.

Later starting from 1889, metre-gauge lines were laid from Manmad to Secunderabad connecting Aurangabad, Jalna, Nanded and Nizamabad.

The lone Indian member was Sardar Diler Jung Bahadur who was the Secretary of the Railways Department of Nizam's Government.

On 1 April 1930 the NGSR was brought under the direct control of Hyderabad State with Sir Akbar Hydari as the president.

The office was shifted to Hyderabad on 1 November 1941 as due to the ongoing war, it was getting difficult to work over such a long distance.

Nizam agreed to fund the construction expenses for the initial line,[3] leaving subsequent branches to be financed through a variety of means.

[4][5] This partial-nationalisation was reversed in 1883 when a management company was formed to gradually take over the lines, under the provision of a guarantee from the government of HEH, the Nizam of Hyderabad State.

John Wallace Pringle — who had recently completed surveying routes for the Uganda railway[7] — was appointed as the superintending engineer in 1896.

The Hyderabad-Godavari Valley Railways cost 2.6 crores, and earned 7.7 lakhs net in the same year, or nearly 3 percent.

Bombay buyers began to arrive in considerable numbers during the cotton season, which lasted from October to December.

Grain and pulses became more expensive, with much of the best land used for cotton farming, and Marathwada entered a critical period of its history.

When a country begins to produce the raw materials of manufacture in place of food crops, it has started on the road to industrialisation."

The wages paid were good, but the cost of living in Marathwara rose significantly due to the rise of the cotton industry, the uncertainty of rainfall, and availability of credit from money lenders.

[12] As a result, post-1948, Hyderabad State (later Andhra Pradesh) had a significantly superior bus network compared to the rest of India.

[17] All the metre-gauge lines were gradually converted to the nationwide rail standard, 1,676 mm (5 ft 6 in) broad gauge, from 1992 to 2004.