Defence officials said an Indian Army convoy was attacked in an area which falls under the 9 Corps of the Indian Army. After firing by terrorists, our troops also retaliated, Defence officials said.

The militants reportedly hurled a grenade and opened fire targeting Army vehicles which were on a routine patrol on the Machedi-Kindli-Malhar road at around 3.30 pm near Badnota village in Lohai Malhar, 150 km from Kathua town.

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Security forces retaliated but the militants fled into the nearby forest, the officials said, adding an intermittent exchange of firing was going on between the militants and security forces when the last reports were received.

The militants and security forces exchanged gunfire. More troops were sent to the area to stop the attackers, who are believed to be three heavily armed individuals that may have recently crossed the border.

The officials said there were apprehensions that this route was used by terrorists to reach the hinterland after they managed to sneak in from across the border.

The army vehicle, carrying ten occupants, bore the brunt of the attack, resulting in fatal injuries to five soldiers.

Director General of Police R R Swain is personally overseeing the anti-terrorist operation in the dense forest area, connected to Basantgarh in Udhampur district, where several encounters have occurred in the past.

The forest area is connected to Basantgarh in Udhampur district. A village defence guard Mohd Sharief was killed in an encounter with terrorists on April 28  in Panara village of Basantgarh.

The encounter comes a day after six militants were killed and two soldiers laid down their lives in twin encounters in Jammu and Kashmir's Kulgam district. The twin encounters in the two villages of Kulgam district began on Saturday.

Two army soldiers, including an elite para commando, laid down their lives while battling the terrorists, the officials said.

The bodies of two militants were recovered from the Modergam encounter site while four bodies were recovered from the Chinnigam site on Sunday, officials said.

On June 9, a bus was ambushed by militants, killing nine passengers and injuring several others in Reasi. The 53-seater bus was carrying pilgrims from Uttar Pradesh and Delhi and plunged into a deep gorge after the ambush by terrorists in Jammu and Kashmir's Reasi district at around 6:15 pm on June 9, police said.

The militants opened fire at the bus when it was en route from Shiv Khori temple to Mata Vaishno Devi shrine at Katra near Teryath village in the Poni area.