Jubilant and buoyed at the prospect of meeting loved ones, Kashmiri labourers are working at frenzied pace to complete the Srinagar-Muzzafarabad road in time for next month's historic opening of a bus service linking the two parts of the disputed Himalayan territory.

India and Pakistan last month breathed new life to a year-old peace process by agreeing to the bus service, prompting celebrations in the troubled region.

Kashmiris have been lining up in hundreds for travel permits to ride on the cross-border bus and volunteers have poured in by the dozens for helping in the construction of the highway, for the first time since it severed after the two countries went to war in 1947-48.

Indian engineers on Sunday also started repairing an old bridge, which was blown up during the war and are working in tandem with the army for removal of landmines from the 170-km route.

Ghulam Ahmad Mir, Jammu and Kashmir's minister for road and buildings, hailed the army's quick action in clearing the road and helping the people.

"There were apprehensions in the three kilometre area as it was not functional for many years and mines were laid.  Army has worked day and night and de-mined the area.  There is no speculation of anything underneath and the road has been cleared till the end," he said.

Both sides of the 742 kms Line of Control, or ceasefire line, running through Kashmir, have been heavily mined by India and Pakistan.

New Delhi and Islamabad agreed on the bus, which will unite hundreds of divided Kashmiri families, after months of wrangling over the travel documents passengers would use to cross the disputed frontier.

Though minor roadblocks over paperwork continue, optimism runs high amongst the people who feel a new era of peace has finally begun for the embattled valley.

"This road construction would be complete by March 30.  We have been eagerly awaiting the opening up of the route as we all have some relatives or the other living on the other side.  There will be peace and people would be able to meet.  Fresh wave of peace is going to prevail," said Fayaz Ahmed, a labourer.  (ANI)