The book stall was centrally located at the Hanamkonda junction in the town.
Eight fire control vehicles and 49 firefighters worked continuously to control flames from 2 am to 7 pm on Sunday.
The three-storeyed building was full of book shelves and furniture which were gutted, while smoke engulfed surrounding areas.
Warangal West MLA Dasyam Vinayabhaskar and Hanamkonda Deputy Superintendent of Police P Dakshinamurthy visited the spot and ordered the staff to control flames.
According to Divisional Fire Officer Adikeshavulu, an electric short circuit caused the fire on Sunday at 2 am.
Traffic has been diverted in the new bus stand area for the convenience of the fire control staff.
Power supply which was switched off at Brahminwada, Chowrasta and Kakaji Colony in Hanamkonda to control the fire, was restored late Sunday night.
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