Bhubaneswar, Aug 22 (IANS): Five persons have died while 12 others sustained severe injuries following a head-on collision between a tanker and a passenger bus at Samarjhola village in Odisha's Ganjam district on Thursday, the police said.

Expressing grief over the tragic incident, Chief Minister Mohan Charan Majhi has announced a financial compensation of Rs 2 lakh each for the family members of the deceased victims.

Chief Minister Majhi also expressed his condolences to the family members of the deceased victims.

The Chief Minister also announced Rs 1 lakh for those who sustained grievous injuries in the road mishap.

He also said that the entire cost of medical treatment of the injured persons will be borne by the state government.

The passenger bus was going from Bhawanipatna towards Berhampur while the tanker was coming from the opposite direction early Thursday morning.

The speeding tanker collided with a passenger bus while trying to overtake a stationary truck parked along the road at Samarjhola village under Hinjili police station area of the Ganjam district. Both the vehicles later crashed into a tea stall.

Four people, including two vegetable sellers, drinking tea at the stall were mowed down by the tanker.

The injured persons were rushed to MKCG Medical College and Hospital in Berhampur where a passenger succumbed to the injuries later.

"A head-on collision between a bus and tanker took place at Samarjhola village in Hinjilicut around 5 a.m. in which five persons have so far died and around 12 persons are severely injured. All the injured persons have been shifted to MKCG Medical College and Hospital. As many as five of them are admitted to the intensive care unit of the hospital," said Dibya Jyoti Parida, Ganjam District Collector.

He also added that one of the victims undergoing treatment at the hospital is critical while the condition of others is reportedly stable.