Bhubaneswar, Nov 17 :  An oil leak was Tuesday spotted at a crucial pipeline of the state-run Indian Oil Corp in Orissa's Bhadrak district, raising concerns over its environmental impact and loss of supplies.

The leak was detected early morning by residents near Jafrabad village, some 170 km from state capital Bhubaneswar, said District Collector K. C. Patra.

"The leakage was from the Haldia-Paradip pipeline. After detecting the leakage, the villagers diverted the oil to a nearby pond," Patra told IANS.

"Officials are at the spot to assess the quantity of the leakage and environmental damage it has caused. The leakage has also been checked," he said.

"I cannot tell the quantity of oil leaked but it has spread over at least one hectare of cultivated area."

No Indian Oil official was available for comment.(IANS)