Shops and business establishments were shut in several areas following the blockade call and train services were disrupted on the busy Mumbai-Howrah railway line as agitators squatted on the tracks.
There was, however, little impact on road traffic in the city and nearby areas due to the presence of additional platoons of police.
While some short distance trains were cancelled by the railways, the long distance trains had crossed Rourkela before the demonstration began, Railways sources said.
Superintendent of police Anirudha Singh said a close vigil was being kept with over 30-35 platoons (over 1,000 personnel) of police had been deployed and requests have been made for additional forces in case of any eventuality.
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Police said some protesters were dispersed near Jalda as they were trying to block the NH 143 there.
George Tirky, the MLA Biramitrapur who is spearheading the agitation movement said the blockade with continue. "We will force the government to drop the plan to give corporation status to Rourkela," he said.