Police in Varanasi, Uttar Pradesh, have recovered 150 kilograms of ammonium nitrate from a car, while conducting routine frisking of vehicles.
After recovering the explosives, police seized the car in which the material was being transported.
"In the Lanka police station area, while regular frisking of the vehicles, we recovered three sacks ammonium nitrate from a vehicle," said Superintendent of Police Rahul Raj.
The two men carrying the explosive in the vehicle managed to escape.
The vehicles were being checked during peak hours.
A police probe is underway and further details are awaited.
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Uttar Pradesh, home to one in every six of India's 1.2 billion people, is one of the country's poorest and most crime-ridden states.
The state is being criticised for its lawlessness and spate of crime cases against women by lawmakers in parliament.
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