Shah was scheduled to address a rally in Nawada district on Sunday, which also has been postponed in keeping in mind the communal violence.
Sources suggest that the gunfight between the two factions is a culmination of an ongoing land dispute between them.
Villagers alleged that police ransacked homes of many protestors, and assaulted and arrested them on Tuesday night, hours after they sat on a dharna in protest demanding more compensation for their acquired land outside the power plant gate.