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On , the first horse-drawn tram made its début in the city, plying on the Colaba–Pydhone via Crawford Market, and Bori Bunder to Pydhonie via Kalbadevi routes.The initial fare was three annas (15 paise), and no tickets were issued.In 1937, the introduction of double-decker buses proved to be extremely popular.

But the company went into liquidation the following year, and the Market reverted to gas lighting. Later that year, a 4,300 kilowatts (5,800 hp) steam power generator was commissioned at Wari Bunder.

In 1899, Bombay Tramway Company applied to the municipality, for operation of electrically operated trams. Company was granted the monopoly for electric supply and the running of an electric tram service in the city. In 1916, power purchase from the Tata Power group, a privately owned company, was started and by 1925, all power generation was outsourced from Tata.

Ltd, the "Bombay Municipal Corporation"acquired on 7 August 1947, the assets of the combined undertaking, namely the operation of tramways and distribution of electricity in the city of Bombay as a going concern.

By mutual agreement, the corporation also took over the operation of the bus services, which was run by the Bombay Electric Supply & Transport Company.

Due to the high investment required, the company suggested that the BMC should waive its right to take over the tramways, which was to take place in 1901 according to the contract signed in 1874. Since 1913, the company had been pondering over starting a motorised bus service.

However, the BMC decided to take over the company, but was met with several legal problems. The main factor against its introduction was the high accident rate for a similar service in London.Stearns and Kitteredge reportedly had a stable of 900 horses when tram service began. Company bought the assets of the Bombay Tramway Company for Rs.9,850,000.In 1882 the municipality entered into an agreement with the Eastern Electric Light and Power Company to provide electric lighting in the Crawford Market and on some of the roads. Two years later in 1907, the first electric tram debuted in the city.As the service became increasingly popular, the fare was reduced to two annas (10 paise).Later that year, tickets were issued for the first time, to curb the increasing ticketless travel.Those were the days when the tram was the poor man's transport; it carried one all the way from Sassoon Dock to Dadar. In response to the pleas made by the Government and the Bombay Municipal Corporation, the company extended its services to the northern part of the city in 1934.

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