Twenty country-made pistols, two unfinished gun barrels and a firearm making machine were seized from the spot in a raid, Circle Officer S P Sharma said.
The two persons, identified as Vijaylal and Intazar, were arrested while their one unidentified accomplice managed to flee, he said.
The illegal firearms factory was operating in a sugarcane field in Budhana police station area, Sharma said, adding the trio had erected a tent in the field for the factory.