Both men have been suspended and an internal investigation is now underway.
After the incident, they asked family members to take the woman to Jaisalmer claiming that the opening of the womb had closed and it was hard to take the umbilical cord out.
If that incident, which happened on January 6, wasn't horrific enough, the nurse and a colleague deposited the lower part of the foetus in the hospital's mortuary and asked the family to take the woman to Jaisalmer.
Dr Nikhil Sharma, the head of the Ramgarh Community Health Centre, said he was not present when Ms Kanwar was admitted to the facility and the two nurses allegedly conducted the delivery unsupervised.
The incident was reported from Jaisalmer's Ramgarh.
A nurse at a government hospital in India is said to have "decapitated a baby while pulling too hard during a difficult birth".
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Health minister Raghu Sharma said, "Those guilty will be punished and strict action will be taken after investigation".
The family approached the police after doctors at Jodhpur Umaid Hospital informed them about the mishap.
The doctors then informed the victim's family members about the whole incident.
"A case was registered late Tuesday night under Sections 304A and 336 of the IPC against two men - Jujhar Singh and Amrit Lal - who work at the CHC".
Dr Usha Duggad, principal medical officer at Jawahar government hospital said it was a rare case.
Woman's husband later lodged a complaint against the Ramgarh hospital staff for alleged dereliction of duty. Since the gynaecologist was on leave, the nursing staff handled the case. Health department joint director (Jodhpur) Dr S K Parmar on Thursday rushed to Jaisalmer from Jodhpur to investigate the matter.
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