DADU, Feb 14 A powerful bomb ripped through the town's New Chowk area on Sunday, killing two men and injuring 16 others. The bomb destroyed six shops and damaged several houses.

Police initially described it as a suicide bombing, but Hyderabad's acting DIG Jawed Alam Odho later said the blast had been caused by a bomb weighing less than one kilogram.

Those killed were identified as Sikandar and Ghulam Qadir. The injured were taken to civil hospital.

Police and other law-enforcement personnel cordoned off the area after the blast and detained a suspect hailing from Swat.

Later, Mohammad Usman Jamali, owner of Marvi hotel, was arrested when the Swati suspect told police that he and another man had stayed at the hotel.

Another 10 suspects were later arrested from madressahs in Johi town.

As hundreds of people gathered at the hospital to donate blood, Sindh Chief Minister Syed Qaim Ali Shah reached here in the evening and went to hospital to meet the injured.

He told journalists that an inquiry team headed by Home Minister Dr Zulfiqar Ali Mirza had been formed and it would submit its report within two days.

District Nazim Karim Ali Jatoi visited the hospital, met the injured and Ms Iqbal Khatoon, wife Ghulam Qadir Dogar.

The nazim announced Rs150,000 compensation for the heir of each deceased and Rs50,000 for each injured. He also announced Rs100,000 for each of the shops damaged in the blast.

Meanwhile, hundreds of people took out protest rallies and burnt tyres at the DPO Chowk and outside the press club in protest against the incident.

JSSF local leader Mujeeb Panhwar said the terrorist act had destroyed the peaceful atmosphere in the town and demanded exemplary punishment for the criminals who had carried out the terrorist act.

Processions were also taken out in Bhan Syed Abad, Johi, Sita, Mehar and Khairpur Nathan Shah.