"However, the militants were instantly engaged by the army men stationed in the camp", the official said. It led to an exchange of fire that continued for some time.
The injured soldiers were airlifted to Army's 92 base hospital here for treatment.
The army cordoned off the entire area including a nearby forest area as bodies of only two militants have been retrieved so far. Four militants were killed in the attack. A third reportedly escaped, triggering a massive search operation.
Kashmir, a Muslim-majority Himalayan region, is held by India and Pakistan in parts and claimed by both in full.
Earlier in the day, a massive gun-battle was witnessed when three terrorists broke into an army camp in Kupwara.
"Army has launched investigation to ascertain how militants managed to reach near the camp without detection", they said.
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The situation in Kashmir continues to remain tense with continued protests and killings and increase in militant activity is also a major concern for the government.
"However the army soldiers without any provocation resorted to firing on civilian protesters and one of the civilians identified as Muhammad Yusuf, 55, died on the spot".
19 soldiers were killed in a similar attack in Uri on September 19, 2016, which has hugely strained the bilateral Indo-Pak relations.
Seven other soldiers were also wounded in the strike.
PTI quoted official sources to identity the slain army officer as Captain Ayush.