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.
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.