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In 1887, in order to eradicate its "famine debt", the State of Mysore leased the MSR to the [[Southern Mahratta Railway]] (SMR) for a period of 45 years.
On 1 July 1893 two sections of the MSR, the 'Bangalore-Harihar ' and [[Bangalore Hindupur Railway|'Bangalore-Hidupur ']] Railways were transferred by the State of Mysore to the Government of India, giving full jurisdiction and operation <ref>British Library ‘India Office Records’ IOR/R/2/Box 4/35 “Mysore Govt. cede jurisdiction over the Bangalore - Hindupur & the Bangalore - Harihar railway lines. Question of jurisdiction over the Kolar Gold Fields Railway”; 1893-94</ref>. The Railway continued to be operated by the SMR
In 1907, the SMR merged with [[Madras Railway]](MR) to become the [[Madras and Southern Mahratta Railway]](M&SMR) and they continued to work and manage the railway which later became the M&SMR ‘Mysore Section’ <ref name=Admin/>
