Making a statement in the Lok Sabha on the blast outside BJP office in Bangalore, Shinde said the Home Ministry was also working towards putting in place an explosive tracking system.
"We also need to strengthen the intelligence set up of the states. We have been advising the states on this, but we have not seen much progress," he said.
Shinde said the government was also trying to strengthen human intelligence component of intelligence agencies, which is expected to start yielding results.
The setting up of the National Counter-Terrorism Centre (NCTC) has been a bone of contention with several states contending that it affected the federal structure of the Constitution.
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Underscoring the need for tighter checks on explosives, Shinde said the Home Ministry was working with the Department of Industrial Policy and Planning, and the National Institute of Smart Government to put an explosives tracking system in place.
"But the problems will remain till the District Magistrates and Superintendents of Police have the stocks and consumption of the licensed explosive users checked more often and more stringently," he said.
"No casualty was reported in the blast. However, 16 persons were injured including 11 police personnel," he said.
He said forensic experts opined that explosive materials used in the blast could be nitrate compounds.
"Around 50 eye-witnesses' statements have been recorded and nearly 80 material objects processed from the crime scene to gather evidence," Shinde said.