By the Indian Railway Companies Act, 1895 (10 of 1895), it is provided that Railway Companies registered under the Indian Companies Act, 1882 (6 of 1882), may, under certain conditions, pay interest on their paid-up share capital out of capital during construction, and it is proposed by this Bill to take power for the Governor General in Council to apply the same provisions to Companies formed for the construction of tramways not differing in structure and working from light railways. It is believed that legislation to this end will remove what is recognised as a tangible obstacle to the consideration in London of many remunerative light railway projects in India, which, for administrative reasons, it is desired to control in this country under the provisions, not of the Railways, but of the Tramways Act.

Whereas by the Indian Railway Companies Act, 1895 (10 of 1895), the Railway Companies therein mentioned are authorized to pay interest on their paid-up share capital out of capital in the manner and on the conditions prescribed by the said Act.

And whereas it is expedient to apply the provisions of the said Act to Companies formed for the construction of tramways not differing in structure and working from light railways;

It is hereby enacted as follows:

Short title and extent. (1) This Act may be called the Indian Tramways Act, 1902; and

(2) It extends to the whole of India except 2[the territories which, immediately before the 1st November, 1956, were comprised in Part B States].

2. Application of Act 10, 1895, to Tramway Companies. The Central Government may, by notification in the Official Gazette, direct that the provisions of the Railway Companies Act, 1895 (10 of 1895), in so far as the same are applicable, shall apply to any Company formed for the construction of a tramway under the Bengal Tramways Act, 1883 (Ben. 3 of 1883), or the Indian Tramways Act, 1886 (11 of 1886), and thereupon it shall be lawful for the Tramway Company mentioned in the notification to pay interest upon its paid-up share capital out of capital in the manner and subject to the conditions prescribed by the said Indian Railway Companies Act, 1895.

1. The Act comes into force in Pondicherry (w.e.f. 1-10-1963) : Vide Reg. 7 of 1963, Section 3 and Schedule I.

2. Substituted by the Adaptation of Laws (No. 2) Order, 1956, for Part B States .