The two, identified as Bagun Gop and Arun Gop of Chainbasa of neighbouring Jharkhand, were working at a construction site of an industrial unit at Kalinga Nagar.
Police seized a revolver, live cartridges, sharp weapons and two mobile phones from the two who were arrested yesterday, they said.
"The arrested youths belong to neighbouring Jharkhand. They were working at Kalinga Nagar industrial complex for the past couple of weeks. They worked as labourers during the day and turned to robbers at night," Jajpur SP Deepak Kumar said.
They had confessed to have planned to rob a jewellery shop before being arrested, he added.
"We are looking for other gang members. We are also in touch with our counterpart in Jharkhand to verify their antecedents," said the SP.