The incident happened on Friday night on Chapagedda bridge area of Maddigaruvu under G Madugula police station in Vizag Agency, said police.
Police said that the two persons killed have been identified as K Sury Chandra Babu alias Suryam (26) and M Kishore (22). Both were natives of Maddigaruvu, police added.
Inspector Vijay Kumar of G Madugula Police station said that a group of around 60 Maoists led by Pedabayalu "area committee commander" Sudheer entered the Maddigaruvu area at around 11.30pm and took the two from their homes.
"The two were then shot at on Chapagedda bridge. Suryam is the owner of a music and photocopy shop and is survived by his wife and two children. The other deceased Kishore is an unmarried agricultural labourer," said the police official.
A case had been registered, he said. The incident took place on the concluding day of the the annual People's Liberation Guerrilla Army (PLGA) Week observed by the Maoists.