This is TRUE. Under the 'guarantee system', private British companies were encouraged to invest in railways with a guaranteed minimum return, initially 5%, on their invested capital by the Indian government. This system proved costly for the Indian treasury. 2. The railways were to be managed mainly by the Government: This is NOT TRUE. Initially, the railways constructed under the guarantee system were managed by the private British companies themselves. Government management of railways became more prominent later, after the expiry or purchase of these companies' contracts. 3. There was no system of preferential freight charges: This is NOT TRUE. There was a system of preferential freight charges which favored the export of raw materials and import of finished goods over the movement of domestic goods within India. This policy harmed Indian industries and promoted the colonial economic pattern. 4. The companies were to get the land free from the Government: This is TRUE. The land required for railway construction was provided free of cost by the Government of India to the companies. The statements that are NOT true are 2 and 3. 36. Which of the following statements about town planning in British India in early 19th century is/are correct? 1. The funds for town improvement were also raised through public lotteries. 2. The threats of epidemics gave an impetus to town planning in the early decades of 19th century. Select the correct answer using the code given below. - Statement 1: During the early 19th century in British India, especially in Presidency towns like Calcutta, Bombay, and Madras, funds for urban development and improvement projects were indeed raised through public lotteries. The Lottery Committee in Calcutta (1817-1836) is a significant example, using lottery funds for projects like road construction, bridge building, and tank excavation. This statement is correct. - Statement 2: The frequent outbreaks of devastating epidemics, such as cholera and plague, in Indian cities highlighted poor sanitation and overcrowding. These health crises prompted the British authorities to implement sanitary measures, improve drainage, and consider aspects of town planning to prevent future epidemics, particularly in the early 19th century, although more systematic town planning policies emerged later. This statement is correct.