With the population of the Kolkata metropolis continuing to grow, and road transport being unable to cope with demand due to bottlenecks on the roads, it was felt necessary to introduce an additional method of transportation which would ease the congestion problem particularly at peak hours. Of the various modes considered, including tramcars and buses, the railway was found to be most suitable. Unlike other metropolitan cities, Kolkata does not have a rail route running through the heart of the city, nor through the central district area where more commuters will be seeking their transport. Previously a railway line existed between Dum Dum railway station to Ultadanga for the transport of wagons to ChitpurGoods Yard. For a considerable time, lines ran between B.B.D. Bagh and Majerhat for the transport of goods from the port area to the godowns of the Calcutta port along the Hooghly River. These were built during the early East Indian Railway Company period when the river Hooghly was navigable to this area. Gradually with the silting of Hooghly, and its inaccessibility to bigger ships, these lines ceased to be used. With these existing lines being rehabilitated and small stretches of new track being laid in a few locations, a connection could be established between Dum Dum Junction and Prinsep Ghat along the bank of the Hooghly. The original line was a single-line track with loading and unloading sidings and wharfs. A few platforms were built and simultaneous reception facilities were constructed at some stations. The line was commissioned from Dum Dum railway station to Prinsep Ghat on 16 August 1984. In fact the lines from the port of Calcutta already existed for an interchange yard for Eastern Railways, and these lines were modified/extended/realigned for the Circular Railway. Previously the trains were hauled by diesel shunters. The electrification works have been completed and four Electrical Multiple Unit trains originally destined for Sealdah during office hours have been diverted to the central business district of Kolkata directly, avoiding Sealdah station. The line has been an overwhelming success with commuters and the earnings have quadrupled with the introduction of EMUs. Once connected to Majerhat a train can easily ply up to Dum Dum to complete the circle. This has been a boon to office-goers. The Circular Railway is directly managed by the Eastern Railway. The Circular Railway is a part of the Kolkata Suburban Railway along with the Kolkata Metro to provide connectivity throughout the city. The line is a single-lined track from Tala station to Princep Ghat station, but in the platform area it becomes double-lined for crossing. From Princep Ghat the line becomes single-tracked until it reaches Majerhat.
Kolkata's Circular Railway was extended from Dum Dum Cantonment to Biman Bandar/Netaji Subhash Chandra Bose International Airport. The extension from Dum Dum Cantonment station included two elevated stations Jessore Road and Biman Bandar. It ran at grade to UK Dutta Road and then on an elevated structure to the Airport passing through Jessop, Jessore Road, VIP Road and the domestic terminal road. This project was undertaken by the Kolkata Metro. The Jessore Road station has been closed since 7 January 2015. The Biman Bandar station has been closed since 30 September 2016. Currently this section is being converted into metro under Kolkata Metro Line 4.