Tension prevailed in the area around the factory of Deccan Fine Chemicals in Rajavaram area under Payakaraopeta mandal of the district today as a group of locals indulged in stone-pelting.
A major fire had broken out at the company's warehouse on Sunday evening.
A large number of people from Rajavaram, Gajapathinagaram, Rajanagaram, Kesavaram and Venkatnagaram today went on a rampage pelting stones at the factory and the police had to use cane-charge to disperse them.
The protesters, many of them women, demanded immediate closure of the factory or shifting of the five villages from its vicinity, saying it poses a risk to their lives.
They also gheraoed Revenue Divisional Officer from Narsipatnam K Surya Rao.
Inspector K Venkata Rao of Yellamanchili police station said the situation was now under control and police were patrolling the area.
