Kovilur panchayat president Azhagappan, who led the protest, was among the persons, including 70 women, who were arrested.
Police said cases had been registered against them for blocking roads.
Meanwhile, Tamil Nadu Pollution Control Board (TNPCB) engineer Rajendra Babu said only temporary clearance had been given as the management had repaired the plant.
TNPCB would inspect the factory frequently and permanent clearance would be given subject to two conditions being followed -- non-discharge of effluents and no environmental pollution.
The 35-year-old plant was ordered to be closed by TNPCB on February 17 as it had not been maintained properly.
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