Police sources said the bomb exploded in the forest gate of the fish market under Kheroni police station at around 5.40 pm when about 2000 people gathered there.

Five, including a woman and two children, were seriously injured, in the explosion of the bomb planted by Karbi Longri National Liberation Front, the sources said.

A powerful bomb was recovered in Diphu town and 8 militants of the KLNLF surrendered in neighbouring Morigaon district.

An army patrol noticed a suspicious packet lying near the autonomous state demand council office in Diphu, official sources said.

The two kg improvised explosive devise fitted with a timer device was defused by army engineers, the sources said.

This is the sixth bomb recovered since December 2 when rebels of the same outfit blasted a bomb in Lumding-Diphu passenger train in Karbi Anglong district killing 3 persons and injury to 34 others.

Meanwhile, 8 militants surrendered before the army on Saturday with arms and ammunition at Jagiroad of Morigaon and deposited two AK-56 rifles, a 9-mm pistol, two .32 revolvers and 90 rounds of assorted ammunition, some grenades, explosives, detonators and a radio set to Maj Gen Chandan Kumar of the Red Horn division at a ceremony.