The incident took place when the children were on their way to school, police said, adding, the injured were admitted to a hospital immediately.
The tanker has been seized by the police but the driver managed to escape from the spot.
District collector, C P Tripathi, along with other officials rushed to the accident spot and oversaw the relief and rescue operations, police said.
The collector had recommended an ex-gratia payment of Rs 2 lakh to each of the deceased students' parents from the Chief Minister's relief fund.