Freight equalisation and backwardness of eastern states

The freight equalisation policy, adopted by the Centre in 1952, remained in force until 1993 to facilitate industrialisation throughout the country through subsidised transportation of minerals. However, the policy took away the advantage of mineral-rich eastern states and disincentivised private capital to invest in states such as WB, Assam, Bihar, Jharkhand, Odisha, MP, and Chhattisgarh.