Police in the southern Indian city of Mysore say they have arrested two suspected Pakistan-based militants after a shooting.
Senior police official Praveen Sood told the BBC that the two men were planning to launch attacks on targets in Mysore and Bangalore cities.
Two policemen were injured in the incident, which happened after the two men were stopped by a police patrol.
Guns, a satellite phone and a laptop were seized from the men, police said.
Mr Sood said the incident took place on the outskirts of Mysore, about 145km (90 miles) from Bangalore, which is the hub of India's info-tech industry.
He said the two men were travelling on a motorcycle when a police patrol stopped them.
Both sides opened fire, and the two men were arrested after their motorcycle skidded and they fell down, Mr Sood said.
He said information found in a laptop seized from the men indicated that they were members of Pakistan-based separatist group al-Badr.
India and Pakistan recently agreed to set up a joint mechanism to fight terrorism.
India has also said it will share evidence with Pakistan about what it describes as its involvement in the July train bombings in Mumbai (Bombay).
Pakistan has promised to take action if India is able to demonstrate that it is connected to the train bombings that killed 186 people.