The Union Cabinet has cleared the way for an agreement with Pakistan for starting a bus service between Amritsar and Nankana Sahib and a trial run for the Amritsar-Lahore bus sometime this month.
A Standing Committee will be set up once an agreement is signed.
Parliamentary Affairs Minister P R Dasmunsi said the pact aims at expanding economic cooperation and facilitating people-to-people contact between the two countries.
A trial run for the Amritsar-Lahore bus had been scheduled for October but had to be put off following the October 8 earthquake that rocked Jammu and Kashmir.
As per the agreement, the designated operators for the bus service will be Punjab Roadways and Pakistan Tourism Development Corporation.
Initially there will be one service every week along the 56-km route. The bus will leave from Amritsar on Tuesdays and return on Wednesdays while the Pakistan bus will depart Lahore on Friday and return on Saturday.
The one-way fare will be 750 Indian rupees and 900 Pakistani rupees. The service will be point to point, with the bus not stopping anywhere to pick up or drop passengers.
Both Indian and Pakistani buses will carry up to 46 passengers, including crew members. The timings will be staggered so that they do not clash with the Delhi-Lahore bus service.
The customs and immigration infrastructure used for the Delhi-Lahore bus service at the Wagah border will be used for the Amritsar-Lahore bus as well.
Dasmunshi said the final agreement might differ from the draft on minor points, such as the bus fare.