What was considered the city's unique heritage at one time is now considered by the urban development ministry as a solution to cut down the transportation costs.
The ministry plans to introduce trams to mid-sized cities with a population of 1.4 million people, saying that this mode of transportation can allow towns to capture the impulse and the density generated by metropolitan cities.
Discussing on the 'next generation tramways solutions'. Kamal Nath, the urban development minister said,"transportation is critical to India's economic growth and a clean energy solution is essential to provide smart mobility in urban areas and allow freight to move easily."
He further added, "Operating costs are lower than for buses. A tram system will provide easy interoperability with first-mile/last-mile modes such as bikes and walking, existing transportation systems, as well as high speed rail and rapid transportation systems of the future."
Officer on special duty at the urban development ministry, S K Lohia said that the ministry would consider tramway projects under the second phase of its flagship Jawaharlal Nehru national urban renewal mission, which is going to start in the middle of the next year.
The bus projects were launched under the first phase, which also included metros but had to be dropped as they were expensive.
"Cities can start preparing detailed project reports for tramways as they will be financed under the second phase," Lohia said.