The densely populated Refugee Colony locality of Steel City was sealed on Sunday following the detection of 90 positive Covid cases in 24 hours.
Entry to the locality, which falls under Golmuri police station area, was restricted from all sides.
Refugee Colony became the second locality after Kadma which was declared a Covid hotspot.
The Kadma market and its near-by residential areas were sealed on Saturday following the detection of over 80 positive cases on Thursday and Friday.
Local civic body - Jamshedpur Notified Area Committee (JNAC) barricaded the colony from all sides on Sunday afternoon.
At least five places within the Refugee Colony have been declared as a containment zone.
Soon after sealing the colony, policemen were deployed to keep a tab on movement of people.
JNAC official Ravi Bharti confirming the report said, "The entire colony has been sealed. The Covid affected persons in that colony include both men and women. Several elderly persons also tested Covid positive."
Bharti added that only shops selling essential commodities will remain open.
The East Singhbhum district reported 870 Covid positive cases (out of 5,200 tests) in the last 24 hours with 16 deaths. While 13 Covid patients died in Tata Main Hospital, three deaths took place in Telco-based Tata Motors Hospital.