Construction and maintenance of tramways :- (1) A municipality may

either singly or in combination with any other local authority or any Joint Stock Company—

1. (a) with the previous section of the State Government construct or maintain or assist the construction or maintenance of a tramway or rope-way, motor omnibus or other transport service, within or partly within and partly without the municipality, subject in the case of tramway to the provisions of any law for the time being in force relating to the construction and maintenance of tramways;
2. (b) subscribe to any debenture loan raised by the Central or the State Government or by any local authority or by any company as defined in the Indian Companies Act, 1913(VII of 1913), for such construction or maintenance which in the opinion of the municipality is likely to be of benefit to the municipality; (¢) guarantee the payment from the Municipal Fund of such sums as it shall think fit as instalments of principles and interest on capital expended on any such construction.

1. (2) No application for sanction shall be made in regard to any of the matters specified in sub-section (1), unless it is authorised by a resolution of the municipality supported by not less than two-thirds of the Councillors present at a meeting specially convened in that behalf, such resolution being confirmed after a period of three months by a like majority at a like meeting.