The body of contractor Subala Sil (50) was found in a pool of blood on the canal embankment near Supalu road under Kalimela police station, Inspector-in-Charge IIC) of Kalimela police station Aniruddha Routray said.
Sil, who was undertaking repair work of canal embankments and village roads, belonged to nearby MV 55 village and was the sole bread earner of his family comprising two daughters, three sons and wife.
The Maoists had earlier warned him by putting up posters on the canal embankment asking him not to undertake repair works without their permission.
Sil had been to the area this morning to supervise the work when the ultras caught him and killed him.