The youth was arrested at Charichhaka under Ganjam district's Aska police station limit in the early hours, the police said.
The accused, identified as Bulu Nahak of Nuagaon near Aska, received bullet injuries on his legs and was admitted at MKCG Medical College and Hospital, here.
His accomplice however managed to escape in a motorbike from the spot, police said.
A mouser and three live cartridges were seized from him, a police officer said.
While Bulu fired at least four rounds, the police fired two rounds, a police officer said.
Hile Bulu was injured, no police man was injured, SP Ganjam Narsingh Bhol said.
Bulu was allegedly involved in the murder of Bala Krushna Patra, local BJD leader and former chairman of Buguda NAC on November 24 and Ganesh Bisoi on August 25 near Aska.
On December 8, police had arrested two accused persons, Bhagaban Sahu, 45 of Sahebagada, near Aska and Sunil Sethi, 23 of Polasara in connection with their involvement in Patra's murder case.
"With the arrest of Bulu, we are hopeful of getting some information about the gangsters, who operate rom the prison", sub divisional police officer, Aska, A K Mohanty said.
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