Even a good policy with the best intentions can have unintended and adverse consequences. The Freight Equalization Scheme (FES) was one such policy meant to promote balanced industrial development throughout the country but ended up impeding the industrialisation of the mineral-rich eastern states. From 1956, consumers across the country got iron, steel, cement, and fertilisers at the same price, as the transportation was cross-subsidised. There was also a price control on coal, which ensured its availability at a fairly uniform price. This price equalisation deprived the mineral-rich states of their natural advantage of setting up downstream processing industries in the automotive, engineering, and energy sectors. As a result, industries developed in a few coastal states with large markets, such as Maharashtra, Gujarat, and Tamil Nadu, but states like West Bengal, Jharkhand, Odisha, Madhya Pradesh, and Chhattisgarh suffered. Consider this statistic: in 1950, West Bengal and Bihar accounted for 92% of all iron and steel production and 48% of all manufacturing output in engineering-related industries; in 1992, when FES was repealed, their share in engineering-related sectors was in the single digits.