Naxalstorcheda privatetravel bus in Chhattisgarh's insurgency-hit Sukma district, after asking its passengers to alight, police said today.
Rebels also fired upon an anti-landmine vehicle in which security forces had rushed to the spot to rescue the passengers.
However, no one was hurt in the incident, they said.
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The bus was heading to Hyderabad from Jagdalpur (Bastar's district headquarter) when it was attacked.
Around 50 cadres, most of them armed, surrounded the bus in a thickly forested patch near Tahakwada and asked the passengers to get down before setting it ablaze, he said.
Subsequently, security forces were rushed to the spot in a Mine-Protected Vehicle keeping in view the sensitivity of the region.
Near Tahakwada, naxals fired few rounds on the MPV but soon fled from the spot as the back-up forces reached there and launched retaliatory action, he said.
Later, the evacuated passengers were sent to their destinations in other buses, the official said.
Yesterday afternoon, a government-run passenger bus too was torched by naxals in neighbouring Dantewada district.