At least 12 people were killed and over 75 injured in two near-simultaneous blasts in Hyderabad on Thursday.
While one of the blasts took place near Venkatadri theatre, the second one occurred near Konark theatre in Dilsukh Nagar.
Home Minister Sushilkumar Shinde said "it was too early to say anything and only an investigation will reveal it," when asked if there was a terror link to the attacks.
Shinde said the two bombs were placed within a radius of 100 to 150 metres in Dilsukh Nagar area in Hyderabad. The explosives were placed on two bicycles, he said.
"There were two blasts in Dilsukh Nagar. I have spoken to the Chief Minister (Kiran Kumar Reddy) and he told me that the bombs were placed in two cycles and in one place eight people were killed and in other place three people were killed. 50 people were also injured," he told reporters in Hyderabad.
Asked whether the death told could go up, the Home Minister said "it is possible that death toll will rise".
Referring to the serial blasts, Union Home Secretary RK Singh said IG NIA and probe team of NSG is being flown from Delhi. He said that a high alert has been issued in Delhi, Mumbai and several other states. Singh also said that there was no information yet on who carried out the blasts.
Andhra Pradesh Chief Minister Kiran Kumar Reddy said his government will bear all medical expenses of the injured. He also announced that families of those killed will get Rs 6 lakh each.
Dilsukh Nagar, the area were the incident took place, is a crowded area in Hyderabad, and one of the main commercial areas of the city. Gaddianaram market in Dilsukh Nagar is the biggest in Andhra Pradesh. The blast took place near the main bus stand near Hyderabad-Mumbai highway.
Political parties condemned the twin bomb blasts in Hyderabad with Prime Minister Manmohan Singh asserting that those responsible for the "dastardly" act would not go unpunished.
"This is a dastardly attack, the guilty will not go unpunished," he said.
Condemned the attacks, Vice President Hamid Ansari conveyed his condolences to the families of the innocent victims who lost their lives.
Both Singh and Ansari appealed to the public to remain calm and maintain peace in this difficult hour.
Singh announced Rs two lakh each to next of kin of those killed in the blasts and Rs 50,000 each to those seriously injured from the PM's Relief Fund.
He directed the central agencies to extend all possible help to the Andhra Pradesh state authorities in relief operations.
Congress President Sonia Gandhi expressed her sorrow and anguish on the blasts in Hyderabad.
BJP President Rajnath Singh condoled the loss of lives and demanded a thorough probe into the blasts.
"I express my condolences to the family members of those killed in the blast. This is a condemnable incident. I hope the government will take appropriate action to provide immediate and adequate relief to those injured in the blast," Singh told PTI.
Reacting to the incident, TRS leader Kiran Rao said the situation in the Andhra Pradesh capital was very chaotic. "This is not a time to have political divisions...this is an attack on our country and democracy, we all are together," said Kiran Rao.
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