The XE was a heavy 2-8-2 broad gauge goods locomotive that was built from 1928 as part of a large standard programme. With an axle load of 22.5 tons, it was heavier than the XD and mainly intended for mineral trains. The drivers measured 5 ft 1½ in (1,562 mm) and the cylinders were 23.5 inches in diameter and 30 inches in stroke. By this time, it was the heaviest non-articulated steam locomotive in India and could haul trains of up to 2,000 tons. In some sources it is also being called “X Eagle”.

By 1930, 44 had been built by Beardmore and 14 by Vulcan Foundry. In 1945, Vulcan Foundry built 35 more which were designated XE/1 due to some improvements. These included modified cylinders and steam chests, roller bearings on the driving axles and a modified design of rear truck. Later the class was fitted with mechanical stokers to help fire the 60 square feet grate. After World War II, Baldwin built a similar design that was called class AWE. Five of the original class XE were preserved, with No. 22541 as the only one that was restored to working order.