He also said the entire medical expenditure of the injured students would be borne by the state government.
Rao said he was "highly upset" by the accident and expressed deep shock and offered condolences to the families of the children.
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The Chief Minister conveyed his displeasure and anger over the accident to South Central Railway General Manager P K Srivastava.
Srivastava assured the Chief Minister that gates would be arranged at all level crossings within a week's time.