Patna, July 15 (IANS) Two school children were killed and 10 others seriously injured Tuesday when a rail engine hit their bus in Bihar's Bhojpur district, police said.

The accident took place at the unmanned Ghanauti railway crossing near Piro town, about 70 km from here, when the engine rammed into the school bus carrying the children from school.

"Two children were killed on the spot and 10 others seriously injured and admitted to various hospitals," a district police official said.

The children were students of J.D. Public School in Piro.

The state government has announced a compensation of Rs.1 lakh to the families of the two children killed in the accident.