Police sources told IANS that the guerrillas fired at the entrance of an army camp in Kalibari-Janglote area of Kathua district.
“After continuous exchange of gunfire for nearly two hours, two terrorists have been killed,” a source said.
“One army soldier has been injured. The area is being searched to locate the third terrorist.”
A group of three guerrillas in army uniforms had stopped a private vehicle at Dayal Chak on the Jammu-Pathankot highway around 4.30 a.m. Friday morning and fired at its occupants, killing one of them on the spot and injuring three others.
The guerrillas then escaped in the same vehicle and headed towards the Kalibari-Janglote army camp, 25 km from Dayal Chak.
After the twin terror strikes on the highway, traffic on the otherwise busy Jammu-Pathankot highway was stopped.
Chief Minister Omar Abdullah condemned the terror strike.
“I would like to unequivocally condemn today’s militant attack in Kathua area of Jammu,” he wrote on Twitter.
“I will not be commenting or reacting to today’s events until the security forces have declared the operation as concluded”, he added.
The attack is reminiscent of a similar terror attack in Kathua district Sep 26, 2013, when guerrillas had first attacked the Hira Nagar police station killing five policemen and a civilian and then attacked an army camp near Samba town.