Patna,(BiharTimes): The state cabinet on Tuesday finally formed Bihar Urban Transport Services Ltd for running city buses in the state under centrally sponsored Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

According to the cabinet secretary Brajesh Mehrotra it would facilitate the urban transport in the state. He said it would be decided by the company as whether the bus service in the cities would be run on by itself or on a public-private-partnership (PPP) mode. The urban development and housing development has to procure 400 buses for Patna and its adjoining areas under the centrally-sponsored JNNURM.

Funds were sanctioned under the JNNURM for procurement of buses for Patna and Bodh Gaya in 2009 but no progress has been made yet. The Bihar Urban Transport Services Ltd would run the city service buses in the 11 municipal corporation areas of Bihar. The department has submitted a proposal with the urban development ministry to run buses in 10 municipal corporations under phase-II of the JNNURM. The PMC has been excluded from the list because the funds for Patna has already been sanctioned.

The cabinet also approved the pay hike of Rs 3,500 per month for librarians appointed on the consolidated pay in the secondary and higher secondary schools of the state. About 1,600 librarians appointed on the consolidate pay in these schools would be benefited. The cabinet also sanctioned Rs 59.22 crore for North Bihar Power Distribution Company Ltd and Rs 67.35 crore to South Bihar Power Distribution Company Ltd for development of high capacity power distribution and sub-transmission system.