Transport Minister Kailash Gahlot today said the move is intended to boost the public transport system in the national capital.
The DTC has not added any new bus in its fleet Since 2013. The minister said the move will be a great push to the state-owned carrier which had been facing a "huge shortage" of buses for a long time.
He said it will also put to rest the "rumors" of the Delhi government planning to shut the DTC that was set up in 1971.
He said the DTC will soon float tenders for the procurement of buses, adding the government expects that all buses will come on roads in the current financial.
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The DTC has also decided to abolish Annual Maintenance Contract (AMC) and the government expects that this would attract more bus manufacturers.
"The AMC was one of the major hurdles in procuring new buses. If required, the DTC will recruit more persons for the maintenance of buses," Gahlot said.
As per courts order, DTC and Delhi Integrated Multi-Modal Transit System Ltd. Have to run 5,500 buses each in the city.
Asked about DTC's another proposal of mini buses, he said it is under consideration and that a decision will be taken soon.