Five persons were arrested, including four bus staff - three of them from Srikakulam district in Andhra Pradesh - were arrested for illegally transporting the explosives, said Superintendent of Police (Berhampur) Prateek Mohanty today.
The security personnel located the bus transporting explosives last night.
The arrested were identified as A. Rama Rao, the driver of the bus, S. Krushna Murthy, R.G Rao (all vehicle employees hailing from Srikakulam district) and Bikash Bisoi of Pujariput in Koraput district, another employee of the bus.
The recipient of the explosives was identified as Pintu Sethi of Ankuli, at the outskirt of the town, police said.