Thousands of people have been displaced in the week-long clashes [AFP]

Catholic schools across India were shut on Friday in protest and both the Vatican and the Italian government have voiced concern over the violence.

But authorities insisted that they have halted the bloody, week-long clashes.

Naveen Patnaik, the state's chief minister, said the situation in Kandhamal, the worst-affected district, was "fast returning to normal".

"Riots in the other districts have been completely controlled," he said.

Krishan Kumar, the chief administrator of Kandhamal, said: "Hindu and Christian peace committees have been meeting and the leaders have appealed for calm."

At least 6,000 people have taken shelter in government camps and that number is expected to swell to 10,000, Kumar said.

Houses burnt

Hundreds of houses were burnt to the ground and police were ordered to shoot rioters on sight after the violence erupted following the killing of Swami Laxmanananda Saraswati, a leader of a Hindu group, last week.

About 5,000 people are said to be hiding in forests around the district of Khandhamal, fearing violence after Hindu mobs burnt more than a dozen churches and attacked Christians and other Hindus.

On Thursday, India's Prime Minister Manmohan Singh asked the Orissa chief minister "to take immediate steps to stop violence".

The Italian government has said it will summon India's ambassador to stress the need for "decisive preventative and repressive action" to crack down on what it called "unacceptable" religious violence.

The Italian decision came after Pope Benedict XVI "firmly condemned" the violence.

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