The DTC has not added any new bus in its fleet since 2013. The minister said the move will be a great push to the state-owned carrier which had been facing a "huge shortage" of buses for a long time.
He said it will also put to rest the "rumors" of the Delhi government planning to shut the DTC that was set up in 1971.
"The DTC's Board has decided to procure 1,000 standard-floor buses which will augment the public transport in the city. As per rough estimate, procurement of buses will cost the government around Rs 400 crore," the Delhi transport minister said.
He said the DTC will soon float tenders for the procurement of buses, adding the government expects that all buses will come on roads in the current financial.
"The AMC was one of the major hurdles in procuring new buses. If required, the DTC will recruit more persons for the maintenance of buses," Mr Gahlot said.
Due to a low maintenance charge, bus manufacturers were not showing any interest. At present, the DTC has about 3,900 buses, including 1,200 air-conditioned low-floor ones.
As per courts order, DTC and Delhi Integrated Multi-Modal Transit System Ltd. have to run 5,500 buses each in the city. Asked about DTC's another proposal of mini buses, he said it is under consideration and that a decision will be taken soon.