Heavy exchange of fire is underway as the Army has launched a counter-terror operation against the militants.
According to reports, an oil depot in the Army camp has caught fire amid gunbattle.
Three to four heavily armed terroristsentered the camp near the LoC and opened fire. The terrorists also threw grenades.
In a separate incident, busting a major terror hideout, the Indian Army recovered several improvised explosive devices (IED) and ammunition from Poonch in Jammu and Kashmir.
The arms and ammunition recovered from the hideout include three IED Cylinder (3 Kg Each), bottle shaped IED 500gms, two AK magazine, 112 rounds of AK, one Chinese grenade, 41 PIKA ammunition, two IED triggers and two meter wires.
The haul also included a broken radio set, a SIM card and two Pakistan currency notes.