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The minister made the announcement after pacifying agitated locals who had disallowed the bodies to be removed for clearing debris till he reached the spot.
Railway traffic between Patna and Howrah had been disrupted because of the stir.
Accompanied by top Railway Board officials, Kumar arrived at the accident-site by a special train on Wednesday afternoon.
He said his ministry would provide compensation of Rs 400,000 to dependents of each of those killed. An additional Rs 100,000 would be provided to each bereaved family as ex-gratia.
Compensation ranging from Rs 15,000 to Rs 100,000 would be paid to the injured depending on the nature of injuries.
He also announced that Dumri would be made a full-fledged station and later held a meeting with top railway officials.
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