One person was reported to have been killed by naxals at the spot, they said.
The incident took place between Peddakudthi and Penta villages under Dornapal police station limits when the two buses, were heading to Hyderabad, a senior police official told PTI.
While one bus was going to Hyderabad from Jagdalpur, another from Malkangiri (Odisha) to Hyderabad via Sukma, he said.
Armed ultras stopped the buses between Peddakudthi and Penta and asked the passengers to get down from the vehicles following which they set it ablaze, he said.
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As per eyewitnesses, ultras have also killed a person after setting vehicles on fire, but it could be officially confirmed once security forces will reach to the spot, which is around 500 kms away from the state capital, the official said.
Security forces have been asked to take extra precaution while going to the place which is located on an extremely sensitive Sukma-Konta road, he said.
Naxals might have executed the incident in retaliation to the recent encounter on March 2 in Pujari Kanker area of Bijapur district wherein their 10 colleagues were gunned down by Greyhounds force of Telangana, he said.