"The Cabinet has approved the proposal for introduction of bus service in its meeting today," a source said.
The proposal, mooted by the Ministry of Road Transport and Highways, is for signing a Memorandum of Understanding with the neighbouring country for the introduction of passenger bus service between Imphal (Manipur) and Mandalay (Myanmar).
The Cabinet has also given its nod to the air services agreement with the neighbouring country and has allowed operation of more flights to Myanmar.
The revised air service agreement would enable the Indian carriers to operate more flights from different Indian cities to Mynamar.
The agreement will be initiated during the forthcoming visit of Prime Minister Manmohan Singh to Myanmar which is expected to take place towards the end of the month.
The agreement will also enable Indian airlines to fly onwards from Myanmar to other destinations in South East Asia.
In the present scenario, domestic airlines can only fly between India and Myanmar.