The blast took place in Naya Bazaar at around 10:40 am after which the area was cordoned off by the Delhi Police.

The victim died in the blast has not been identified yet.

Delhi's anti-terror squad and Special cell have reached the site of explosion along with the crime and forensic teams to collect the samples.

Reports suggest that explosive materials used in the making of firecrackers have been found at the site of the explosion. Window panes of the surrounding buildings were damaged due to the impact of the blast.

"Prima facie it looks like a firecracker explosion in a jute bag. Though, the nature of the blast is yet to be ascertained as doubts remain if the explosion was caused by firecrackers or cylinder," Virendra Chahal, Joint CP Northern Range said.

Watch video of the blast.