Chapter II Chapter II

Grant of Rights, Functions and Powers of the Tramway Operator

1. (1) A local authority in respect of a Municipal area within its jurisdiction or any other authority, agency or body of the State Government or a Government company may make an application for the development, construction, management, operation and maintenance of a tramway system in a municipal area.
2. (2) A local authority or any other authority agency or body of the State Government or a Government company, as the case may be, shall not make an application or an Order, unless the making of such application has been approved in the manner prescribed.
3. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the State Government may on its own motion or on an application or otherwise, by an order in writing, require a local authority or any other authority, a Government company or an agency or body of the State Government to make an application for development, construction, management, operation and maintenance of a tramway system in a municipal area.

1. (1) On receiving an application under section 3, if the State Government is satisfied as to the propriety and necessity of proceeding thereon, publish a notice in such manner and containing such information as may be prescribed, together with the draft of a proposed order authorising the development, construction, management, operation and maintenance of the tramway system in a municipal area.
2. (2) A notice under sub-section (1) above shall state that any objections or suggestions which any person may desire to make with respect to the proposed order, if submitted to the Government on or before the date to be specified in such notice, will be considered.
3. (3) If after considering objections or suggestions, if any, which may have been made with respect to the draft order on or before the date specified in the notice published pursuant to sub-section (1), the State Government is of the opinion that the order should be made, with or without addition or modification or subject or not to any restriction or condition, it may make an order accordingly.
4. (4) Every order authorizing the development, construction, management, operation and maintenance of a tramway system shall be published in the Andhra Pradesh Gazette and such publication shall be conclusive proof that the order has been made as required by this section.

Notwithstanding anything contained in this Act,- (1) the State Government may enter into an agreement or other arrangement (whether by way of partnership, joint venture or in any other manner) in writing, with any person selected through open competitive bidding or otherwise for grant of concession to develop, construct, manage, operate and maintain a tramway system for any Municipal area on build, own, operate and transfer or any other basis and on such other terms and conditions as may be agreed upon or prescribed by the State Government;

1. (2) the tramway operator appointed pursuant to an agreement referred to in sub-section (1) is entitled to collect and retain fare, subject to the provisions of the agreement for services or benefits rendered by him, at such rate as the State Government may, by notification, in the official Gazette, specify subject, however, to the rules that may be made in this behalf.

1. (1) the order or the agreement, as the case may be, shall upon its coming into force and effect, entitle the person authorized thereunder to develop, construct, manage, operate and maintain the tramway system subject to the terms and conditions set forth therein and to all applicable laws and regulations. The person so authorized by the order or under the agreement, as the case may be shall, upon it coming into force and effect, be the tramway operator under this Act for such tramway system.
2. (2) The right to develop, construct, manage, operate and maintain a tramway system pursuant to an order or the agreement, as the case may be, shall include the right to use thereof and to undertake such other commercial operations, as may be expressly permitted by such order for the purposes of the development, construction, management, operation and maintenance of a tramway system and not otherwise.

1. (1) An order made under section 4 or an agreement entered under Section 5, may provide, for all or any of the following matters, namely:-
   • (a) the period before the expiration of which the tramway system shall commence operations, and the conditions subject to which the local authority or person may within that period commence commercial operations and opened for public traffic;
   • (b) the conditions subject to which the tramway operator may burrow tunnels for the purposes of the tramway system, under any public or private property.
   • (c) the conditions subject to which roads may be opened and broken up for the purposes of the construction or maintenance of the tramway system or any part thereof, an the method of, and materials to be used in the reinstating of the roads and the approval of the method and materials by the State Government or the authority designated by the State Government before the commencement of the work;
   • (d) the conditions on which any part of the tramway system may be constructed over a bridge or across a railway or a tramway carriage-way, when the carriage-way over the bridge is to form part of the tramway system or when any part of the tramway system is to cross a railway or another tramway carriage-way on any level;
   • (e) the space which shall ordinarily intervene between the outside of the carriage-way on either side of a road whereon the tramway system is to be constructed, and-
     • (i) in the case of a tramway system having one rail or guide way or dedicated right-of-way, the rail or guide way or dedicated right-of-way of the tramway, or
     • (ii) in the case of a tramway system having two or more rails or guide ways or dedicated right-of-way the nearest rail or guide way or dedicated right-of-way of the tramway and the conditions on which a smaller space may be permitted.
   • (f) the gauge of the rails or guide ways or dedicated right-of-way to be used, and the mode in which and the level at which, they shall be laid and maintained; and the adoption and application by the tramway operator of such improvements in the rails or guide ways or dedicated right-of-way and in their situation, and in the substructure upon which they rest, as the state government may from time to time require;
   • (g) the portion of the road or roads traversed by the tramway system to be kept in repair by the tramway operator; the maintenance by the tramway operator to the satisfaction of the State Government of that portion of the road or roads; and the liability of the tramway operator, on the requisition of the State Government, from time to time to adopt and apply such improvements in the tramway as the State Government may consider necessary or desirable for the safety or convenience of the public, and to alter the position or level of the tramway to suit future alteration in the road or roads;
   • (h) the application of material excavated by the tramway operator in the construction or maintenance of the tramway system;
     • (i) the provision of such crossings, passing places, sidings, junctions and other works, in addition to those specified in or authorised by the order or agreement, as may from time to time be necessary or convenient to the efficient working of the tramway;
   • (j) the powers which may from time to time be exercised by the State Government, the local authority, or any other authority in respect of sewers, drains, telegraph-lines, gas-pipes, water-pipes or other things in or on land occupied by the tramway system, the notice (if any) to be given of the intended exercise of those powers, the manner in which the powers shall be exercised, and the extent to which the tramway system and the traffic thereon may be interfered with in the exercise thereof.
   • (k) the conditions subject to which the tramway operator may from time to time interfere with, or alter or require the alteration of the position of drains (not being sewers or main drains), telegraph lines, gas-pipes, water-pipes or other things as aforesaid;
   • (l) the provision of a temporary tramway system or part thereof in place of a part of a tramway system which has been removed, or the use of which has been discontinued by reason of the execution of any work affecting a road along which a part of the tramway system was laid, or by reason of the use of the road being interrupted by floods or other cause;
   • (m) the motive power to be used on the tramway system and the conditions on which any mechanical power or electrical power may be used;
   • (n) the nature, dimensions, fittings, appliances and apparatus of the carriage to be used on the tramway system and the inspection and examination thereof by officers of the State Government or the concerned regulatory or other authority, and the liability of the tramway operator, on the requisition of the State Government, from time to time, to adopt and apply such improvements in the carriages, and in the fittings, appliances and apparatus, as the State Government may consider necessary or desirable for the safety or convenience of the public or the tramway system;
   • (o) the traffic which may be carried on the tramway system, the traffic which the tramway operator shall be bound to carry, the traffic which the tramway operator may refuse to carry, the fares leviable by the tramway operator, and the periodical revision thereof by the State Government and the regulation of the traffic and of the levy of the fares;
   • (p) the use of the tramway system free of any payment by the local authority, with its own carriages, for specified purposes, during specified hours, with power to the local authority to make such sidings and other works as may be necessary for communication between its premises and the tramway system;
   • (q) the conditions subject to which tramway operator may be permitted to encumber or create any security interest in the tramway undertaking or any part thereof, by sub-lease, sublicence or otherwise including substitution of the tramway operator under the order or the agreement, as the case may be, and the conditions subject to which any Government authority or any other person including any local authority or any other authority may be the transferee;
   • (r) the performance by the State Government or by the local authority or any other authority or any work required by the Act or the order or the agreement to be done by the tramway operator; and
   • (s) the penalty to be incurred by the tramway operator for failure to observe any condition or direction contained in the order or the agreement, as the case may be, and the application of the penalty when recovered.
2. (2) The State Government may, in providing in the order for the acquisition of land for the purpose of a tramway system, direct that land may be acquired for the tramway system under the provisions of the Land Acquisition Act, 1894 (Central Act No.1 of 1894); or under any other law for the time being in force.
3. (3) Nothing contained in this Act shall be construed as-
   • (a) authorising the disregard by the tramway operator of any law for the time being in force; or
   • (b) authorising any person to institute any proceedings in respect of duty or liability to which the tramway operator or its officers or other employees would not otherwise be subject.

1. (1) The State Government may, on the application of the tramway operator, revoke, amend, extend or vary the order by a further order, or agree to the revocation, amendment, variation or extension of the agreement by a further agreement, as the case may be.
2. (2) An application for a further order or agreement shall be made in the same manner and subject to the same conditions as an application for an order or agreement, as the case may be.
3. (3) The State Government may, in its discretion, either grant or reject the application.
4. (4) If the State Government grants the application, it shall make the further order or enter into a further agreement, as the case may be, in the same manner as an order or agreement except that no addition to, or modification of, the rights, powers and authorities asked for in the application, or restriction or condition with respect thereto, shall be made or imposed by the further order without the consent in writing of the tramway operator.

1. (1) Notwithstanding anything contained in this Act, the State Government may, in the public interest or in the interest of better tramway system grant lease or licence of the land acquired or otherwise being made available by the State Government to a tramway operator for the purposes set forth in the order or the agreement, as the case may be, including for a tramway system or any tramway system premises (including buildings and structures thereon and appertaining thereto) to carry out some of the functions of the tramway operator on such terms as the State Government may deem fit: Provided that such lease or licence shall not affect the powers and functions of the State Government under this Act.
2. (2) No lease or licence of any land shall be made by a local authority in favour of a tramway operator appointed under an agreement pursuant to Section 5, without the previous approval of the State Government.

The tramway system, together with any and all assets, liabilities, obligations, contracts and employees shall vest with the tramway operator in accordance with the order or the agreement, as the case may be, for the duration as set forth in such order or agreement. In the event of change of the tramway operator which has been approved by the State Government, the tramway system, together with any and all assets, liabilities, obligations, contracts, and employees shall vest with such tramway operator on such terms and for such duration as the State Government may prescribe by the order published in Official Gazette, or in the agreement entered into by the State Government, as the case may be, approving such change of the person acting as the tramway operator: Provided that nothing contained in this section shall affect:

1. (i) any sub-contract entered into by the tramway operator pursuant to section 11 with any other person, or
2. (ii) the vesting of all or part of a tramway system vested in any person pursuant to an agreement entered into by the state government under section 5(1).

1. (1) Subject to the provisions of the order or of the agreement, as the case may be, the tramway operator may sub-contract to any person such part of its obligations, duties and functions relating to the development, construction, management, operation or maintenance of the tramway system, as the tramway operator may deem fit.
2. (2) Notwithstanding entering into of any such sub-contract, the tramway operator shall remain liable and responsible to the State Government for the performance of its obligations and functions in relation to the tramway system including but not limited to those pursuant to or under the order or the agreement, as the case may be.

Subject to the provisions of sections 10 and 11 and the terms and conditions of the order or the agreement, as the case may be, the functions of the tramway operator shall include,-

1. (a) to develop, construct, manage, operate, maintain and use the tramway system and provide rapid mass transportation services for public carriage of passengers and luggage on such tramway system within a Municipal area;
2. (b) to engage in and perform such other functions and provide such other services as are incidental to or may be considered necessary for the purpose of development, construction, management, operation, maintenance and use of a tramway system for providing rapid mass transportation services for public carriage of passengers and luggage within a Municipal area; and
3. (c) to undertake such other operations and functions as may be expressly permitted by the order or the agreement, as the case may be, for the purposes of the development, construction, management, operation, maintenance and use of the tramway system.

Without prejudice to the provisions of sections 6 and 9 and subject to and in accordance with in any applicable law for the time being in force and effect, the State Government may, for the purposes of the development, construction, management, operation and maintenance or use of a tramway system, and subject to such conditions as it may prescribe in this behalf and for such duration as it may consider necessary, require any local or other authority to grant leases, licenses or enter into other contracts with any tramway operator to facilitate the development, construction, management, operation and maintenance and use of any tramway system.

1. (1) If a tramway operator authorised under an order made under section 4 or an agreement under section 5, as the case may be,-
   • (a) does not within the time specified in such order or agreement, substantially commence the construction of the tramway system, or
   • (b) having commenced the construction, suspends it without reasons sufficient in the opinion of the State Government to warrant the suspension, or
   • (c) does not within the time specified in such order or agreement, as the case may be, complete the tramway system and open it for public traffic, or
   • (d) committed material breach of any terms and conditions of such order or agreement, as the case may be, the State Government shall have the power to suspend by a notification the powers, rights and authority of the ram way operator under the order, or under the agreement, as the case may be. Any such suspension by the State Government, shall, notwithstanding anything to the contrary contained herein, be deemed to be under the order or the agreement, as the case may be, and without prejudice to the respective rights and remedies which the State Government and the tramway operator may have with respect to such suspension under the order or under the agreement, as the case may be.
2. (2) A notification published by the State Government in the Andhra Pradesh Gazette to the effect that on a date specified in the notification the construction of a tramway system had not been substantially commenced or a tramway system had not been completed and opened for public traffic or that the construction of a tramway system had been suspended without sufficient reasons, and that the power, rights, and authority of the tramway operator under the order or under the agreement, as the case may be, shall for the purpose of this Section, be conclusive proof of the matter stated therein without prejudice to the rights and remedies which the tramway operator may have under the order or under the agreement, as the case may be.
3. (3) The rights and remedies of the State Government under this Act or any other law for the time being in force, in respect of any breach of or default under the order of the agreement, as the case may be, are without prejudice to the rights and remedies which the State Government may have under the order or the agreement, as the case may be.

The tramway operator appointed by the State Government either through an order, or agreement, shall not transfer its rights or obligations to any person except with the prior express consent in writing of the State Government which the State Government may in its sole discretion refuse or give subject to such conditions as the State Government may deem appropriate: Provided that nothing contained in this section shall affect,-

1. (a) any sub-contract entered into by the tramway operator pursuant to Section 11 with any other person or
2. (b) the vesting of all or part of a tramway system vested in any person pursuant to an agreement entered into by the State Government.