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[[File: Jodhpur-Bikaner Railway Map 1909.png|thumb|Jodhpur-Bikaner Railway Map 1909]]A lignite quarry (although referred to as a colliery) opened at Palana in Bikaner in 1898 with the intention of being using the coal for locomotive use <ref name =RJ04>“Industrial Railways and Locomotives of India and South Asia” compiled by Simon Darvill. Published by ‘The Industrial Railway Society’ 2013. ISBN 978 1 901556 82-7. Available at http://irsshop.co.uk/India. Reference: Entry RJ04 page ....</ref>. In 1908 it was reported that ‘the coal is of inferior quality, but when mixed with Bengal variety is found satisfactory, and is largely used on the [[Jodhpur-Bikaner Railway]] and by the [[Public Works Department]] of the State; attempts are being made to manufacture briquettes '

The Palana Colliery was connected to the [[Jodhpur-Bikaner Railway]] (BSR) by a metre gauge([[Rail_gauge_#Metre_Gauge|MG]]) branch line, 10 miles(16km) long. This is shown on the 1909 "Imperial Gazetteer of India - Railway Map" as a branch line from Gigasar on the 'Bikaner-Nagaur-Merla Road' section of the BSR <ref>[http://dsal.uchicago.edu/reference/gaz_atlas_1909/pager.html?object=29 From Imperial Gazetteer of India, v. 26, 1909, Railway Map-Section 1, p. 23.]; Retrieved 28 May 2017</ref>.

It is not known when the Colliery or the destiny of the ‘Palana Colliery Railway’ branch line. There is no trace of its existence in the 1918 Ad"Administration Report on Railways" <ref>[https://archive.org/stream/BombayBarodaAndCentralIndiaRailwaySystem/Bombay_Baroda_And_Central_India_Railway_System#page/n05/mode/1up “Administration Report on Railways 1918” page 05 ]; Retrieved 28 May 2017</ref>