"Private-sector corporate operators will add 400 new cluster buses, making it a fleet of about 1,600 cluster buses during this financial year," Jaitley said while presenting the Delhi Budget in Parliament.
The Finance Minister has allocated Rs 3,702 crore for the transport sector in Delhi during 2014-15.
Also, stating that the ISBTs at Sarai Kale Khan and Anand Vihar are functioning without suitable infrastructure, Jaitley added that these would now be upgraded.
"Due to rapid increase in volume of road traffic, a number of intersections with single-carriageway flyover need to be converted into dual carriageway flyovers. Construction on some of the selected flyovers will be taken up on priority," he added.
There is a requirement for 11,000 public transport buses in Delhi and, as per an agreement between DTC and DIMTS, both are mandated to run 5,500 buses each in the city.
Jaitley, meanwhile, also informed the House that tenders have already been floated for an earlier proposal to procure 1,380 semi-low floor buses for DTC.
He also said that work on construction of phase-2 of elevated corridor over Barapullah Nullah at a cost of Rs 533 crore is in progress and it would be further extended from Sarai Kale Khan to Mayur Vihar under phase-3.
Jaitley also stated that all regional offices of the transport department are being renovated and modernised to provide convenient and timely services to the people of Delhi.
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