The situation worsened at Essar Steel project site on Saturday, after the previous day clash, when some alleged company-hired goons attacked a supervisor of a construction agency and ransacked his two-wheeler.
The labourers reportedly had agreed to join work on the intervention of local police but the incident had them on the backfoot.
They informed the matter to Paradip Lock Police. SDPO Bhabani Sankar Mishra had assured them to resolve the issues through talks between the company and labour leaders.
A senior officer of Essar company said the construction work at the plant had been stalled for the last two days following the clash between labourers and security personnel.
Meanwhile, the police have registered two cases in the Friday clash incident and two platoons of police deployed at the plant site as a precaution.