Fresh violence erupted in simmering Nandigram [Images] on Thursday when one person was killed in an exchange of fire between clashing groups, allegedly supporters of the Communist Party of India-Marxist and the Bhoomi Uchched Protirodh Committee, as the number of deaths rose to two since Wednesday.

Even as a bandh was being observed in five blocks of the east Midnapore district to protest the killing of local CPI-M leader Niranjan Mandol on Wednesday, another person, identified as Dulal Gadu, was shot dead on Thursday morning, official sources said.

"Dulal Gadu of Gadupara in Gokulnagar area was shot today morning by some unknown miscreants. He died on the way to hospital", Officer-in-Charge of Nandigram Debashis Chakraborty told PTI.

Meanwhile, Ashoke Guria, a local CPI-M leader, claimed that the victim belonged to the CPI-M and he was murdered by the Trinamool Congress-backed BUPC (Anti Land Resistance Movement Committee).

"In the last two days they have murdered two of our ardent supporters and they are trying to create a reign of terror in the whole area", Guria alleged.

There were reports of fresh exchange of fire and bombing from several villages like Bhangaberia, Kalicharanpur and Chanderpul since the bandh began.

Meanwhile, Trinamool Congress leader and convener of BUPC Abu Taher alleged that three of their supporters were injured in the shootout.

"Armed cadres of CPI-M in black outfits and sporting black bandanas came in motorbikes from Khejuri and raided the villages. They shot three persons at Bhutar and hurled bombs at random," he said.

The 24-hour bandh was separately called by the CPI-M and the Trinamool Congress in five blocks in and around Nandigram to protest the killing of Mandol.

The Trinamool Congress, which denied charges that its supporters were responsible for Mandol's killing, had demanded a CBI inquiry into the incident.

Shops, markets, schools and other financial institutions remained closed in the area.