Militants attacked an army camp at Kathua on the Jammu-Delhi national highway early on Saturday morning, killing two armymen and injuring six others.
A defence spokesman in Jammu told rediff.com that two heavily-armed militants tossed a powerful hand grenade and fired automatics at soldiers of the territorial army, who were busy in their morning drill.
"Eight armymen were injured in the attack. They were rushed to hospital immediately, where two critically injured troopers succumbed," the spokesman said.
He said quick reaction teams were rushed to the area and the two militants entered a house. "The house has been surrounded and an effective cordon has been established. The gun battle is still continuing," he said.
One report said the two militants may have managed their escape after the attack. However, Jammu range police chief Dr S P Vaid said that the area is being searched.
