An adjacent building and number of other houses in the vicinity were extensively damaged in the high-impact explosion compounding the tragedy.
Chief Medical Officer Dr Arun Sharma told PTI that "So far, 82 people have been killed in the explosion and till now, we have performed the autopsy of 60 people."
The injured are undergoing treatment in various nearby hospitals.
According to Divisional Commissioner Sanjay Dube the toll may go up further as rescue operations are still underway at the explosion site to locate survivors.
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The exact number of casualties will be known once the rescue operations are over as many people are suspected to be still trapped in the debris, he said.
Earlier, police had said that the explosion was caused by a cooking gas cylinder kept in the adjacent three-storeyed building housing a hotel.
Chief Minister Shivraj Singh Chouhan expressed grief over the incident and announced an ex-gratia of Rs 2 lakh each to kin of the deceased and Rs 50,000 for those injured.
Senior officials from Jhabua including Superintendent of Police G G Pandey besides State Tribal Welfare Minister Antar Singh Arya have rushed to the spot.
State Home Minister Babulal Gaur said a high-level inquiry has been ordered into the incident.
"A team equipped with gadgets to operate in collapsed structures has been sent to the accident site in Jhabua from Vadodara in Gujarat. The team will assist local administration in retrieval operations," NDRF Director General O P Singh told PTI in Delhi.