Dense smoke has covered the area and its neighbourhood comprising three villages of Topsi, Dhasal and Jorjonaki, besides Belbandh creating panic among the residents, who have come out of their houses.
Fissures have developed on the ground in some areas and smoke was billowing out from those too.
The fire was seen in Belbandh mine, which is under ECL and neighbouring abandoned mines at around 5.30 pm today, company Technical Director, Niladri Chakraborty said.
No miner was inside the Belbandh mine and ECL, whose safety team has reached the spot and has begun dousing the flames, he said.
Chakraborty said spontaneous heating caused by evacuation of water inside the mines could be a reason for the fire.