The Bombay Tramway Company Limited was formally set up in 1873. The Mumbai Municipality was given the right to buy up the concern after the first 25 years or after every period of 7 years thereafter. After this contract was entered into between the Bombay Tramway Company and the Municipality, the Government of Mumbai enacted the Bombay Tramways Act, 1874, under which the Company was licenced to run a tramway service in the city. The tram-cars were of two kinds-those drawn by one horse and those drawn by two. In 1905, a newly formed concern, “The Bombay Electric Supply & Tramways Company Limited” bought the Bombay Tramway Company and the first electrically operated tram-car appeared on Mumbai’s roads in 1907. The passing years aggravated the problem of rush-hour traffic and to ease the situation, double decker trams were introduced in September, 1920.