The Central government is planning a comprehensive upgrade to Kolkata’s century-old tram system to convert it into a light rail transit (LRT) system, on the lines of systems in Europe and the USA. Compared to the existing slow speeds, the new LRT would have speeds around 40km/hr and would have modern, air-conditioned coaches. The Asian Development Bank (ADB) will fund a major portion of the cost, with the state government providing
र150cr. The Centre would provide 20% of the project cost as viability gap funding. According to the renovation plan prepared by The Institute of Urban Transport, a wing of the Union Ministry of Urban Development, each tram will have up to three coaches. The trams will be fitted with GPS and the routes will act as feeder services to the Kolkata Metro.