Steiner, who is currently on a visit to Kashmir, donated the bus to Shah Anwar Memorial Secondary School, Kupwara, at a function held at Help Foundation orphanage in Hazratbal area here.
After handing over the keys, the German ambassador boarded the bus with the school kids for a ride.
"The ambassador interacted with the kids at the orphanage and their teachers," an official of the German embassy said.
Yesterday, Steiner inaugurated a solar lighting plant at Gogoldara in Baramulla district and handed it over to locals.
"Within our limited possibilities, we lend focused, sustainable support on a people-to-people basis. Our engagement is about striking a true chord with the Kashmiris," Steiner had said yesterday.