"Satyendra Yadav was arrested at the bus stand by the personnel of town police station when he got down from a bus," Superintendent of Police Y S Ramesh told reporters here.
A total of 21 gelatin sticks and 27 bullets of sophisticated weapons were seized from his possession, he said.
The rebel, he added, was to hand over the explosives to an associate.
"He is an active member in an area committee of the CPI (Maoist) and hails from Hariharganj in Palamau district," the SP said.