Two militants carrying backpacks and AK 47 rifles were spotted by a CRPF personnel around 4.30 am as they approached the camp.
The sanitation and search operations is still underway.
As per the latest updates, the gunbattle between the terrorists and security forces in underway near the camp between 23 Battalion of the CRPF. "He fired, forcing them to flee from the bylanes", media reports quoted a CRPF spokesperson as saying.
The attack comes close on the heels of the strike on the Sunjwan Army camp in Jammu by a group of Jaish-e-Mohammad terrorists, which left six people, including five Army personnel, dead and ten others injured. "They ran into the nearby building behind National School", said a senior police official.
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Rajesh Yadav, PRO of the Force told Greater Kashmir that Mujahid Khan of 49 Bn, succumbed to his injuries at the site of the gun fight.
It is believed that the terrorists were planning to attack the CRPF camp. "Fortunately two terrorists are in cordon & exchange of fire going on".
Recently, militants had attacked a paramilitary base in the highly fortified Humhama area outside Srinagar city.
After the hiding terrorists were challenged, they fired at the security forces triggering an encounter that continues till reports last came in.