The man, who allegedly hurled a grenade at a religious leader outside a mosque in Pulwama, was handed over to the army by locals on Saturday and he said he carried out the attack at the behest of separatist outfit Hizbul Mujahideen.
He told reporters at an army camp that he threw the grenade at Hizbul's order and was paid Rs 1,000 for this.
"I was paid Rs 1,000 by a Hizbul militant to target Maulana Abdul Rashid Dawoodi, a preacher," said Ghulam Nabi.
Earlier, Inspector General of Police (Kashmir) S M Sahai said Nabi was paid Rs 1,000 by Hizbul Mujahideen to carry out the strike targeting Dawoodi, a preacher of Barelvi sect.
"He is still with the army. A better picture will emerge once he is handed over to the police," he said.
Nabi, a resident of Litter village in Pulwama, was caught by the locals after he flung the grenade at Dawoodi who was going to the mosque to offer Friday prayers.
The attack that left five dead and 50 wounded was unequivocally condemned by all, including the separatists.
Nabi said he was ashamed to commit such a crime, which was forced on him.
The youth, said to be related to a self-styled Hizbul divisional commander, did not identify the militant who gave him the grenade a day before the blast.
Asked why he accepted Rs 1000 to carry out the attack, Nabi said he was threatened that if he did not obey the order he and his family would be liquidated.
Dawoodi, who was wounded in the attack, was recuperating in hospital.
Hurriyat hawk Syed Ali Shah Geelani demanded an inquiry into the incident by an impartial agency.
In a statement in Srinagar, he said the attack appeared to be a deep-rooted conspiracy to divide Kashmiri Muslims.
A delegation of Hurriyat doves visited the scene of the attack, which it termed as inhuman.
It said those involved in the incident were enemies of Kashmiris and Islam.
The delegation also visited houses of bereaved families to offer their condolences.
