A day after 16 bombs went off in Ahmedabad, Gujarat, killing 38 people and injuring 98, a live bomb was found in a garbage can in Amraiwadi area of the blast-hit city on Sunday.

Coverage: Ahmedabad Blasts

The bomb disposal squad later defused the bomb, police sources said.

Gujarat Chief Minister Narendra Modi [Images] has called a special Cabinet meeting in Gandhinagar to discuss the security situation in the state.

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The investigation of the blasts has been handed over to city crime branch and special teams have been formed to probe the case.

Images of a terror-hit Ahmedabad

The city police is in touch with Navi Mumbai police regarding the e-mail sent to television channels threatening more blasts across the country.

Police said primarily they have found that ammonium nitrate was used as explosive material in the bombs. LPG cylinders were also used to increase the impact of the blast at the Civil Hospital.