Anguished by the Mehrauli blast, Prime Minister Manmohan Singh said the Government will fight terrorism resolutely and will tighten intelligence gathering, investigation and prosecution process.

It is "most unfortunate" that the incident took place, Singh said referring to Saturday's explosion in Mehrauli in South Delhi which killed at least two people and left 22 others injured.

"My heart goes in sympathy to those who lost their near and dear ones. It is not possible for me from this distance to comment on who is responsible for the outrage," he said.

The outrage demonstrates that "we have to further tighten the intelligence gathering process, the investigation and prosecution processes," Singh told.

"We won't give up the war on terror and we will fight with all resoluteness to deal with the menace," he said.

The explosion at Mehrauli's flower market yesterday came exactly two weeks after the national capital was rocked by five near-simultaneous blasts in which 24 people were killed and more than 100 injured.

The Opposition BJP has charged the UPA government with being soft of terrorism and demanded stricter anti-terror laws.