"Curfew was relaxed from 6 am to 3 pm in Koparkhairane," the official said.

Special buses are being run by the state government to enable students appearing for Senior Secondary Council Board exams to reach their respective examination centres.

The authorities have also deployed adequate police force at the examination centres in the area, Navi Mumbai Police Commissioner Vijay Kamble said.

However, night curfew will be in force in Koparkhairane and Ghansoli village till people's confidence is restored, he said.

"Till Saturday 250 persons were arrested and half of them are being detained as a preventive measure as the examinations of the SSC Board are on," he said.

DCP Amar Jadhav, who was seriously injured, joined duty on Sunday, he said.

The state government is likely to convene another round of meeting to sort out problems between the two communities, sources said.

The villagers, whose lands were acquired by the government to set up the Navi Mumbai township, some 60 km from Mumbai, have been clashing with the 'mathadi' (porters) workers, who are treated as outsiders blaming them for "depriving" locals of employment opportunities.

The trouble started with the alleged molestation of a girl from Ghansoli village by 'Mathadi' workers on the day of Holi, following which the villagers clashed with the workers, killing one person. Two others died after police opened fire to disperse the rioting groups.

The riots later spread to other villages in Navi Mumbai and Koparkhairane and Nerul villages witnessed a surge in violence on Saturday.