Changes

In 1899, the company applied to the BMC, for operation of electrically operated trams. Due to the high investment required, the company suggested that the BMC should waive its right to take over the tramways, scheduled to take place in 1901 according to the contract signed in 1874. After due deliberations, the BMC decided to take over the company. The takeover created several legal problems, leading to the foundation of a new public company, the Bombay Electric Supply & Tramways Company Limited, which bought out the Bombay Tramway Company in 1905 <ref name=Encycl/>

The '''Bombay Electric Supply & Tramways Company Limited''' took over 17.377 miles of double track tramway, 195 single-deck tramcars, 1385 horses and 18 bullocks, together with various depots and stables. Work on conversion to electic traction started within the year and the company also applied for 5.7 route miles(9.1km) of extensions. Some of the extensions were deferred because of the narrowness of the streets – which were subsequently widened <ref name=Untold/>