"The condition of the minister is stable and he is out of danger. He will be under observation for 48 hours," Kalinga Hospital chief R K Padhee told reporters.
He was admitted in the intensive care unit and a team of expert surgeons had operated on him.
Mohanty, a Tourism and Culture minister, last night sustained bullet injuries on his left arm and back when the attackers, who were apparently following him on a two-wheeler, opened fire at him in a narrow lane near his house in Puri, police said.
He was rushed to a hospital in Puri and subsequently shifted to Bhubaneswar.
Meanwhile, Director General of Police (DGP) Prakash Mishra who visited the spot in Puri, said: "We have received certain clues and the culprits would be arrested soon. They hail from Puri town."
The DGP ruled out the possibility of involvement of attackers from outside the district in the incident. "The police had information that certain local persons were involved in the crime," he said.
Sources said two persons had opened fire at the minister from a single point and the intention was to kill him.
Puri SP Anup Kumar Sahu said: "We have been probing into different angles to assertain motive of the crime."
Chief Minister Naveen Patnaik, his ministers and political personalities from different parties visited the hospital and enquired about Mohanty's health.
Both opposition Congress and BJP condemned the incident and demanded stringent action against the culprits. They also said that law and order situation has completely collapsed in Puri town.