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They said Indian troops opened fire when they intercepted movement of a group of terrorists near the LoC in the Nowshera sector, they said.
They said there was a brief exchange of fire. Subsequently a blast took place, probably after an intruder stepped on a landmine.
In the gunfight and blast, two terrorists were killed and another was injured, they said.
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“The entire area along the LoC has been cordoned off and searches are going on,” a source said.
On June 1, Army personnel had foiled a similar infiltration bid and killed three heavily-armed intruders in the same area.