The bomb, kept in a tiffin box, was found in a dustbin near NTR Garden which is at a stone's throw distance from Lumbini Park which was rocked by a terror bombing four months ago.
The recovery of the bomb a day after re-opening of the popular laser show at Lumbini park sent the police into a tizzy.
City Police Commissioner Balwinder Singh said that such type of bombs were generally used in Rayalaseema region often plagued by violent clashes between rival political groups.
''We have taken up the investigation and security has been tightened further at the Secretriat and public places,'' Singh said.
A security guard at the popular tourist spot found the bomb in a dustbin on a pavement and informed the police who later defused it, police said.
Meanwhile, the bomb disposal squad said the bomb contained 50 grams explosives and cycle ball bearings.
The famous laser show in the Lumbini Park here, the scene of the deadly terror bombings on August 25 last year, reopened yesterday amid tight security measures.
Over 40 people had lost their lives in the bomb blasts at the Lumbini Park and Gokul Chat Bhandar, a popular eatery, on August 25.
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