Acting on a tip-off, a white colour car was intercepted near the canal late last night, they said.
Gurdev Singh and Tarsem Singh were arrested after the contraband was seized from their possession.
Initial investigations revealed that the accused were in touch with Pakistan-based smuggler code named Bhatti who supplied drugs to Gurdev, police said.
Tarsem was assigned the task to receive the drug consignment, police said, adding the duo was arrested when they were on way to deliver the contraband to a client.