The Kapilvastu District Administration Office lifted curfew in Krishnanagar from Tuesday morning. Normal life in the bordering town is gradually limping back to normalcy.

DSP Rabi Rawal said the fear has gone as people have started coming out of their houses to buy essential goods.

Chief District Officer Arjun Prasad Pokharel said a meeting of the district security committee held on Tuesday decided to lift the curfew as the situation gradually improved.

Bus service to Butwal, Bhairahawa and Kathmandu has come into operation.

Krishnanagar Office, one of the biggest customs offices of Nepal, has started clearing the vehicles importing goods from India.

Chief Customs Officer Punya Bikram Khadka said more than Rs 10 million revenues have been collected on Tuesday only.

The DAO clamped the curfew on Sunday after tension flared at a market place near the Nepal-India border following the dispute over the immersion of Durga idols.

The local administration relaxed the curfew earlier on Monday, taking into account movement of people during the Dashain festival.

Krishnanagar had remained tense since Friday evening after some people attacked the procession while moving around the Durga idols in the town. The assailants hurled stones from terraces of the houses near a mosque.

The local administration and the disputing groups of the locals reached an agreement on Saturday evening to arrest the assailants involved in the incident. However, the tension flared again on Sunday as the Hindu and Muslim communities were at odds over the route to move around the idols for immersion. The idols were immersed in the Surai stream amid tight security on Sunday evening.