The incident took place when some local boys went to the area to relieve themselves early in the morning.
Sehdev Singh Tomar, a security guard, asked them not to defecate near the conveyor belt, Superintendent of police D Kalyan Chakravorty said.
As an argument broke out, Tomar hit one of them with a stick. Soon, some villagers arrived on the spot.
During the row, Tomar fired at them from his rifle, killing Shyam Sunder Saket (28) on the spot. He fired another round injuring Rajesh (18), Saket's relative, the SP said.
Singrauli Collector Raghuraj MR and Chakravorty spoke to the angry villagers as well as the company management.
The company immediately paid Rs 1.25 lakh in cash and also handed a cheque of Rs 4.75 lakh to the family members of the deceased, the SP said. It also offered a job to Saket's wife or a monthly pension of Rs 1,000 if she didn't want a job.
It also agreed to give a job to Saket's son after he became major, the SP said, adding a case of murder had been registered against the security guard.
