Nine killed in 'terror' bomb blast at bakery

Home secretary GK Pillai said the explosion at the German Bakery, near the Osho Ashram meditation centre, at about 7.30pm local time (1400 GMT) on Saturday, was likely to have been caused by a bomb.

"It appears that an unattended package was noticed in the bakery by one of the waiters who apparently attempted to open the package when the blast took place," Mr Pillai said.

The building and nearby shops were badly damaged.

"I came running to the bakery after hearing the explosion. I found people lying all over the place," said Abba More, who lives nearby.

One foreigner was among those killed and another was injured in the blast, but their nationalities were not immediately known.

Earlier, Press Trust of India quoted Mr Pillai as saying the blast was likely to have been a terror attack.

If true, it would be the first major terror strike in India since 10 Pakistan-based gunmen rampaged through hotels and the train station in the financial hub of Mumbai for 60 hours in November 2008, killing 166 people.

India has warned of a possible new attack in recent weeks and put its airports on alert for a possible hijacking attempt.

The blast threatened to damage new efforts to reduce tensions between India and Pakistan, with Hindu nationalist leaders already placing the blame for the bakery explosion at India's Muslim neighbour.

The two countries agreed to hold talks in New Delhi on February 25, their first formal negotiations since the Mumbai attacks. Asked whether the blast was linked to the India-Pakistan talks, Mr Pillai said: "Forensic investigations have just begun. Until they are completed, we will not know who is (involved)."

A blast at a busy road junction in southern Pakistan's Sindh province killed three people and injured nine others. Police official Ghazi Salahuddin said authorities were investigating the nature of yesterday's blast in Dadu city.