Two of the arrested members of the terror group Indian Mujahideen [Images] from Pune have told their interrogators that they were planning to abduct a builder and jeweller to generate funds, a police official said.

"The duo had decided to conduct the kidnappings to generate funds for their other terror activities," a senior crime branch official said.

The details of the kidnapping plan emerged during investigations into why the group in Pune had collected a large quantity of anaesthetic drugs and injections.

The duo had surveyed the area around the homes of the jeweller and the builder in early 2008, but failed to carry out abduction since there was high security around them, the official said.

The drugs had been purchased to be used in the kidnapping and for use while holding people hostage, he said.

The police are also probing the source of the anaesthetic medicines, which are prescription drugs and suspected that the the idea for kidnapping was given by wanted person Riyaz Bhatkal.