Taj Mahal
Visitors stand at a gate of the Taj Mahal in the northern Indian city of Agra, in this January 14, 2007 file photo REUTERS

Two people were killed and another critically injured on Thursday in an explosion at a scrap yard in the tourist city of Agra, in the northern Indian state of Uttar Pradesh.

The blast took place in the crowded Tajganj area, about 5 km (3 miles) from the famed Taj Mahal, one of India's most popular tourist destinations.

Agra police said the incident took place while a scrap-dealer was separating explosive material from metal procured from the military, India Today online reported.

Two people died on the spot, while a woman, who incurred serious injuries, has been admitted to the district hospital.

Officials of anti-terror squad (ATS), bomb disposal squad and forensic experts are investigating the incident.

The Taj Mahal, a white marble mausoleum, situated on the banks of the river Yamuna, is a UNESCO World Heritage site.