No casualties were reported although fire engulfed around 40 out of 75 hutments in the heart of the city, they said.
Migrant labourers engaged on a construction site had been staying in these shanties.
The fire broke out at around 11.40 am in the morning when the occupants of the huts were out on the job.
"We are yet to ascertain the cause behind the blaze. There are electricity lines running through the hutments. Five fire tenders were deployed and it took one and half hour to control the fire with more than 30 fire fighters engaged in operation," a fire official said.