Merchant association, truck and private bus owner associations, different trade unions supported the bandh demanding that the Ministry of Railways must reconsider its decision and allow the project at Narla.
The agitators also called upon the state government to mount pressure on the Centre.
Police sources said vehicles remained off the road and all shops and business establishments were closed during the bandh which also paralysed banking and postal services.
Due to picketing in front of offices, government work was also affected, the sources said.
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Rail traffic was stranded in Narla, Kesinga and Langigarh stations of Kaahandi in Vizyanagaram-Raipur and Sambalpur route.
In many places along the National highway passing through the Bhawanipatna town, the agitators burnt tyres.
Besides the district headquarters town here, the bandh had its impact in Narla, Kesinga and Junagarh towns. About 30 volunteers including Congress leader Bhakta Charan Das were taken to custody in different parts of the district.
Incidentally Odisha Chief Minister Naveen Patnaik had yesterday sought a clarification from Railways Minister Suresh Prabhu over media reports on shifting of the proposed wagon repair factory from Kalahandi district.