The work began for construction of the boundary wall in Patnahat and Mangalapada areas as also demarcation of areas already acquired by the administration, Additional District Magistrate Paradip Surjeet Das said.
Teams demolished two betel vine plantations and felled 156 trees for which Rs 2.54 lakh and Rs 7 lakh respectively paid as compensation.
The work continued despite protests by anti-Posco members, before being halted in the afternoon because of the heat.
Pro-Posco members led by Ranjan Bardhan, on the other hand, submitted a memorandum to the district administration demanding proper compensation for betel vine workers who were losing their jobs.
A woman whose husband, Dula Mandal, was killed in violence in the area about four years ago, was given Rs four lakh as compensation during the day following a direction from the state human rights commission, official sources said.