They also also found three used magazines, five live cartridges of self-loading rifle (SLR) and 10 used cartridges of some other weapon apart from the assault rifle used in modern war.
Police said the gunny sack was wrapped with a thermo-coal sheet and prima facie it is that someone had put it in the canal.
Some of the villagers found the weapons in the bag and informed the police.
"The gunny bag had blocked water. It was then villagers got the bag out and found the weapons. The rifle has PJBD written on it, which indicates Jalalabad, Punjab. We are looking into all angles to investigate the matter," Gajsinghpur SHO Shyam Sunder said.