The fire, which broke out around noon in the slum, spread rapidly engulfing virtually the entire cluster and reducing to ashes around 70 housing structures, a fire service officer said.
The deceased identified as Krushna Sahu, died in the incident as he failed to move out of house, Assistant Fire Officer, R C Majhi said.
Five persons sustained minor burns and they were sent to hospital for treatment, Majhi said.
As many as five fire tenders were pressed into service to control the blaze, he said.
While the exact reason of the fire was yet to be ascertained, locals claimed that the fire erupted after a LPG gas cylinder went off in the kitchen of a house.