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The Nilgiri Mountain railway is one of the oldest mountain railways in India. Under consideration since 1845, the line was finally opened by the British in 1899, and was initially operated by the Madras Railway Company. The railway is one of the few in the world dependent on steam locomotives.[citation needed]

The Southern Railway India, in Tamil Nadu which operates the NMR, incurs an annual shortfall of Rs 4 crores, (~1 million USD). During the Centenary celebrations of Nilgiri Mountain Railway in 1999 Railway Minister Nitish Kumar announced that the line would soon be electrified.

In July 2005, UNESCO added the Nilgiri Mountain Railway as an extension to the World Heritage Site of Darjeeling Himalayan Railway, the site then became known as "Mountain Railways of India."[1] after it satisfied the necessary criteria, thus forcing abandonment of modernisation plans.