Three civilians who were taken as hostages by the militants in the Udhampur district of Jammu, have been rescued by the Border Security Forces (BSF).
A terrorist has been killed and one other has been caught alive during the operation.
The terrorist was caught after alert villagers misguided him and got him nabbed. Two terrorists are still hiding in the jungle according to media reports.
Meanwhile, the dead body of the militant has been reportedly sent to police station after recovery.
Earlier in the day, militants, who were reported reportedly wearing military uniforms, attacked BSF convoy on the highway near Samruli, about 10 km from Udhampur.
Two BSF soldiers were killed and five were injured in the attack.
In the crossfire, one of the terrorists ran into the dense forests nearby, taking three locals. The police said the locals helped the forces in catching the terrorist alive.The incident has heightened concerns as this stretch of the highway, often taken by pilgrims headed to Amarnath, has seen few such attacks in the past.
"An attack on this stretch of the NH after a very long time. Worrying development because area was militant free," tweeted former state Chief Minister Omar Abdullah.