The body of Shasita Das was found on January 27 with her throat slit near Hazari traffic junction on the Paradip-Daitary Expressway, about 8 km from here.
The victim worked as a cook in Keshpur village ICDS centre under Pattamundai police station jurisdiction, the police said.
They said preliminary investigations have indicated that the murder was perpetrated over money.
The victim had lent money to Bijoy Mohanty (52), a teacher of a primary school in Harianka village. Mohanty delayed in repaying the loan despite persistent demands by the victim. Later Mohanty hired two youths - Sushant Sahu (26) and Seikh Mustaq (22) from Kendrapara to kill the woman, the police said.
The accused plotted the murder and took her to a fair in Olasuni hillock in Jajpur district on an auto rickshaw.
While returning from the fair, the trio slit her throat with a sharp weapon and dumped the body under a NH-side bridge at Hazari village, the police added.