Curfew was relaxed but tension continued on Tuesday amidst heightened security in communally-sensitive town of Malegaon, rocked by a bomb blast, while calm prevailed in Gujarat's Modasa town also hit by an explosion as Anti-Terrorist Squads began probing the incidents in the two places.

Maharashtra Deputy Chief Minister R R Patil faced angry demonstrators in Malegaon who protested police's failure to prevent the blast.

Although Malegaon remained incident-free after last night's stone-pelting by a mob on policemen following the blasts, there were undercurrents of fear and tension among the people ahead of the Eid-ul-Fitr.

Police have beefed up security and both collector and DSP are camping in the town, police said on Tuesday.

Many delegations of Muslims, political parties met Patil, who is incharge of Home Ministry, and discussed the situation with him.

ATS officials, assisted by bomb detection squad and forensic experts, began the probe into the blast in Malegaon.

Patil visited blast-hit Bhikku Chowk locality on Tuesday afternoon and inquired health of the injured in Farhan and Medicare hospitals.

Talking to mediapersons at the government rest house, Patil announced an ex-gratia of Rs 5 lakh (3 lakh by Central government) to the kin of the victims and Rs 50,000 to the injured.

Patil ordered a magisterial inquiry into the police firing to disperse stone-pelting mob after the blast and said perpetrators of the blast will be dealt sternly and asked the people to remain calm.

Patil said some are trying to hurt religious feelings of people by triggering blasts.

In Modasa in Gujarat's Sabarkantha district, where the blast left a teenaged boy dead, security was enhanced and calm prevailed as teams of ATS and Foreign Science Laboratory in Gandhinagar conducted examinations at the explosion site to determine the nature of explosives used.

Following the incident, security was strengthened across entire Gujarat on Tuesday.

"Security has been beefed up in the entire state following the blast and keeping in mind Navratri celebrations," Minister of State for Home Amit Shah said.