Three Central Reserve Police Force personnel were injured on Tuesday evening when militants attacked their camp in the high security cantonment area in Srinagar.
A suicide squad of Al Mansooriyan outfit attacked the camp of CRPF's 62nd Battalion housed in Hotel Scindia in Indiranagar locality of Batwara.
This hotel is not very far from the Indian Army's 15 Corp headquarters at Badamibagh.
The militants were immediately enganged by the guards and the gun battle lasted over two hours.
The army has sealed the entire area and launched a joint search operation with the CRPF.
A person claiming to be a spokesman of Al Mansooriyan, a shadow group of Lashker-e-Tayiba, claimed responsibility for the attack.