The woman, identified as Rajeswari Kamila, was arrested on January 31 after she allegedly threw eggs at the chief minister at a public meeting at Talsari in the Bhograi block of the district.
"The chief minister today asked the police to withdraw all cases against the woman who had hurled eggs at him" an official in Naveen Patnaik's office said.
Kamila was roughed up by a group of people for the alleged attack and was arrested soon after.
She was produced before the court of the Judicial Magistrate at Jaleswar, who sent her to jail.
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Five days later, she fell ill and was admitted to SCB Medical College and Hospital in Cuttack.The Marine Police Station at Talsari had registered a case against the woman under various sections.