Bhubaneswar: The modernisation project of city bus services here has raised hopes of Germany cash injection after Union ministry of finance asked the state government to put forward a proposal for funds under the Indo-German Bilateral Development Corporation.

In a letter to the chief secretary, the Centre said the Bhubaneswar Bus Modernisation Project was under consideration for funding by KfW, a German government-owned development bank. "Government of Odisha is requested to expedite proposal to accelerate implementation of financial cooperation project under Indo-German Bilateral Development Corporation," the letter reads.

The modernisation plan is a brainchild of the department of housing and urban development through which it plans to revamp the city's mobility sector. The project components include increasing the number of buses, additional feasible routes and revamp of bus stands and depots.

Once approved, the state will get financial aid of 120 million euros, valued approximately at Rs 969 crore. "We received the letter and directed officials concerned to prepare the proposal accordingly for the funds," said a housing and urban development official.

Officials from Germany's federal ministry of the environment, nature conservation and nuclear safety visited the city in April 2016 soon after Bhubaneswar got the smart city tag and expressed a desire to help, mainly in the urban mobility sector. It had then collaborated with the officials and assisted in preparing a proposal for non-motorised transport in the city.

"Our proposed smart city projects will need financial support from different quarters. We have already received financial assistance from the Centre and also raised money from state funds to execute different projects. The German aid will add to it," said mayor Ananta Narayan Jena.

The administration has already decided to increase the fleet of buses to 300 from the present 100 before November. They will also merge the transport jurisdictions of Puri, Konark and Cuttack and roll out new buses in new routes. The Inter State Bus Terminal project is also under execution at Baramunda.

"There is an urgent need to develop the city bus service. The present status of public transport is not good and results in the monopoly of auto-rickshaws and cabs. If we get more buses, we will not opt for the private services," said Nayapalli resident Jyoti Dash.