Chancellor and governor MC Bhandare (second from right) and Chhattisgarh governor Shekhar Dutt (second from left) attend the 25th convocation of Sambalpur University on Monday. Telegraph picture

Paradip, July 30: Tension prevailed at Nimadiha village near the Indian Oil Corporation Limited’s oil refinery project site here over allegation of extortion for sand-lifting operation.

Police had to be deployed when some villagers tried to stop the sand lifting operation by a firm engaged by the public sector oil company at Nimadiha. This is the first disturbance reported from the site after the July 2 CISF firing and consequent violence on the oil refinery project premises.

The police, however, described it as a stray and minor incident. A group of villagers prevented the private company to lift sand from the village. Later, they demanded money from the company before they could be allowed to lift sand from there. While the private firm refused to pay the extortion amount, the villagers allegedly beat up some labourers, said a source in the police.

“It was a handiwork of a group of local goons. Their motive was to extort money from the personnel of the private firm,” said inspector of Abhayachandrapur police station Gupteswar Bhoi.

“The culprits have been identified. We hope to be able to arrest them soon,” he said.

“Work for the project is progressing fast as the police have extended co-operation in curbing lawlessness. With the dispute among various labour unions amicably settled, the atmosphere here is conducive for expediting the project work,” said IOCL deputy manager of corporate communications Sangram Mishra.