The state government will run 200 AC buses, which are used to ferry school children at other times but are now lying idle, and 200 other buses to boost public transport in the city.
The decision was taken on Friday as private buses continued to remain off the roads.
Officials in the home department said the government had decided 'to offer temporary permits' to a section of bus owners. The operators of the AC buses will charge fares according to the existing rates.
The temporary permits will be issued by Sunday.