Around 12 fire engines have been rushed to the spot near the crowded Manish market, officials said adding more fire tenders and water tankers have been pressed into service to douse the flames, which erupted around 1630 hours.
However, no casualties have been reported yet.
Also, the cause of the fire is not yet known.
Last year in November, a big fire flared up at the Manish market, gutting around 300 shops.