"The situation is improving gradually so the curfew was relaxed for four hours in the morning and three hours in the evening today," police said.
Curfew was clamped on Thursday evening after some miscreants pelted stones on a Hanuman Jayanti procession in the town, nearly 294 km from here.
Enraged over the incident, those who were taking out the procession burnt some shops and vehicles. The incident sparked communal tension in the town.
"Over 35 people were arrested after the incident and the situation is under control. The decision to lift the curfew will be taken after a review," they said.