He was addressing the Infrastructure Summit at Kathmandu today.
The agreement for passenger and cargo vehicles movement in SAARC countries ((South Asian Association for Regional Co-operation) is expected to be signed soon.
"India is doing its bit to support the development of infrastructure in Nepal, particularly for connectivity and people-to-people contact," an official statement quoted him as saying.
Both the countries have agreed on adopting the SAARC Motor Vehicle Agreement, which was approved by both the technical level as well as by the Expert Group Meeting in September.
It would promote tourism and people-to-people interaction. The bus service will connect Kathmandu with Uttar Pradesh and Delhi, the statement added.