The deceased policeman has been identified as Inspector-in-charge (IIC) of Ghatagaon police station Dilip Sahu, police said.
Sahu and his men were chasing the dacoit gang when the criminals attacked them near Saharpada in the Keonjhar-Mayurbhanj border by opening fire and throwing crude bombs to escape from them, they said.
Sahu was grievously injured in the incident. He was immediately taken to Karanjia Hospital, where doctors pronounced him dead, they said.
Panic gripped Ghatagan area following the death.
"The state government would provide a job to the kin of the deceased," Patnaik said while condoling the bereaved family members of Sahu.
The Chief Minister praised Sahu's exemplary courage, who, he said, had laid down his life while on duty.
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