Patra (52), a councillor in the NAC, was returning alone from Budhakhola riding a motorcycle when miscreants fired at him near Kharia Nalha, the police said.
Local residents rushed him to a nearby hospital where the doctors declared him as brought dead.
The police have recovered his motorcycle and two empty cartridges from the spot.
Supporters of the ruling BJD in the area put up a road blockade and burnt tyres on Buguda-Aska road demanding immediate arrest of the culprits, said Amitabh Thakur, DIG (Southern Range).
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"We can't say about the exact reason. We will investigate the case from different angles, including political and business rivalry," he said.
The police have intensified patrolling in the nearby areas and police stations in the vicinity have been alerted.
"Since Patra was in liquor business, we can't rule out business rivalry," said a senior police officer on condition of anonymity.