Commencement of the passenger bus service on Friday was part of the administration's exercise to strengthen infrastructure in the panchayat situated in Pottangi block on the Deomali hill range, said an official.
"Apart from providing better transportation to the local people, the service will boost tribal economy," said Krutibas Rout, Sub-Collector of Koraput.
Villagers say movement of people from villages in the Kotiya panchayat will augur well for the socio-economic development of the tribals.
Officials said the bus service will help over 4,000 villagers of the panchayat. The bus will cover around 250 km every day.
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The administration has also erected a check post at Taupadar village, which is on the road leading to Kotiya to check entry of Andhra Pradesh people into Kotiya, said Sadashiv Adhikari, additional block development officer, Pottangi.
Last week, the visit of officials from Vizianagaram district in Andhra Pradesh and launching of their flagship programme Janmabhoomi at Tolo Ganjeipadar village in the panchayat had taken Odisha government by surprise, officials said.
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