The executive engineer of state public works department P Mani was at his residence at Thamnapokpi area in Bishenpur district at the time of the explosion last evening.
Although there was no casualty, two cars of the officer were damaged in the blast, the police said.
The militants escaped under the cover of darkness.
Sources close to the family said the militants had demanded a huge amount from the official a few months ago.
No individual or group has claimed responsibility for the explosion.