At least 12 people are feared dead in the devastating fire at the 21 Field Ordnance depot at Khandeoo in south Kashmir.
"We expect six to eight more fatal casualties in the fire," a defence ministry spokesperson said.
He said it is too early to ascertain details of the casualties.
However, confirmed reports indicate that three persons, including two firefighters and a civilian, died in the incident.
Twenty-five people had gone missing after the blaze.
Amid panic, the army is airlifting special bomb disposal squads to clear the areas so that people could return home soon.
"A well-coordinated plan to clear the area of debris and unexploded devices is underway. The other areas will be cleared thereafter. Joint patrols with the civil administration are being conducted to locate unexploded devices," defence spokesman, Lt Col A K Mathur said.
The fire has largely been brought under control.
Meanwhile, the displaced villagers ransacked the relief camp set up by the administration after rumours spread that 13 bodies were lying in the depot. The trouble started on Monday morning after reports that a civilian had reportedly told a disaster management team that he had spotted 13 bodies in the depot.
However, villagers said there was no confirmation as the army and police personnel have not been able to go inside the depot, fearing explosions.
But angry villagers did not heed the officials and ransacked the Achabal town hall, which was converted into a relief camp. Sources said they even set afire the blankets provided to them.
Anantnag District Development Commissioner GA Peer said the relief camp at Achabal town hall was closed after the incident.
With PTI inputs