"Ten bodies have so far been fished out and the number of casualty may rise," Special Relief Commissioner (SRC) P K Mohapatra told PTI at Bhubaneswar.
Unofficial sources, however, claimed the rescue teams have recovered 12 bodies from the reservoir of the Mahanadi river.
"We have rescued about 80 people from the water. People said about 100 people were in the boat which capsized on the reservoir," said Amitav Panda, a police officer of Ainthapalli Police Station.
"Rescue operation will continue all night," he said.
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The incident took place when around 120 people from the Lion's Club of Sambalpur, Hirakud and Bargarh, who had gone to other side of the reservoir on a picnic, were returning.
"The boat capsized due to over crowding," Panda said.
Quoting a survivor, he said "More than 90 people were on board when the boat developed a snag mid-way. Water also entered in the boat, which led to the capsize."
Chief Minister Naveen Patnaik has expressed grief over the incident and directed the district administration to undertake rescue operation on war footing. He has also announced free of treatment for the survivors.