The 'Q' branch police (dealing with terror activities) alerted police here and they intercepted the lorry near a petrol bunk late last night.
The nitrate was found packed in 50 bags of 100 kg each, police said, adding that all vehicle papers were found to be fake.
The owner cum driver and another person were arrested and booked under IPC section 420, (Cheating and dishonestly inducing delivery of property) read with the Explosives Act, police said, they hoped to make further arrests in the case.
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