"Prohibitory orders under Section 144 CrPC were imposed and armed forces deployed in the town to maintain law and order and prevent any flare up," Superintendent of Police Anup Kumar Sahoo said.
The situation is under control and no untoward incident has taken place, but prohibitory orders will remain in force at least till tomorrow as a preventive measure, he said.
Tension surfaced in Dhamnagar and ajacent areas like Dobal and Palikiri this morning as rumours spread in the town giving a communal colour to a fire that gutted some structures and rooms in the main marker late last night, police said.
Meanwhile, the curfew remained in force for eight hours during night with 16-hour relaxation in Bhadrak town where violence erupted on April 6 and 7 over alleged abusive remarks against Hindu deities on social media.
Over 235 have been arrested in connection with the violence, police said.