Two terrorists and a security personnel were killed in a pre-dawn gunfight near an Army camp on the outskirts of Jammu on Friday, officials said, two days ahead of Prime Minister Narendra Modi's scheduled visit to Samba district.
Nine security personnel were also injured in the operation in Sunjwan area, they said.
Mobile internet services were suspended and schools in the vicinity of the encounter site were closed for the day as a precautionary measure, they said.
Additional Director General of Police (ADGP) Mukesh Singh said a major fidayeen (suicide) attack in Jammu has been averted with the elimination of the two heavily armed terrorists.
Earlier, Central Industrial Security Force (CISF) officials said a bus carrying 15 personnel for their morning shift came under attack at 4.25 am near the Chaddha camp in Sunjwan.
A senior official of the paramilitary force said the terrorists fired at the bus and lobbed grenades, killing Assistant Sub-Inspector (ASI) S P Patil and injuring two other occupants of the bus.
The force retaliated effectively, the officer said.
In the counter-terror operation, a terrorist was also killed, the CISF officer said.
Later in a tweet, the CISF said its personnel were attacked by terrorists while going for an ongoing cordon and search operation.
According to the police, the gunfight began when terrorists opened fire on the search party.
"Two terrorists were killed... They were carrying a huge quantity of arms and ammunition, which suggests that they were planning a fidayeen attack which was averted," the ADGP told reporters.
Two AK-47 rifles, an Under Barrel Grenade Launcher and a satellite phone were also recovered from them, he said.
He said the search operation is still on to clear the entire area.
Singh said it is a matter of investigation what exactly was the target of the terrorists and if they had recently infiltrated from across the border.
"The clear picture, including the identity and group affiliation of the slain terrorists, will emerge after a thorough investigation," he said.
The officials said the slain terrorists are believed to be members of Pakistan-based Jaish-e-Mohammed (JeM) outfit.
They said nine security personnel, including two policemen, were injured in the gunfight. A CISF personnel and a police personnel sustained grievous injuries.
Earlier, ADGP Singh had said, "We had inputs about terrorists planning something (on the eve of the prime minister's visit). A cordon was laid based on an input when a search party came under fire."
On February 10 in 2018, three JeM terrorists stormed the Sunjwan Army camp and in the subsequent gunfight, seven persons, including six soldiers, were killed. All the three terrorists were also gunned down.
On National Panchayati Raj Day on April 24, the prime minister is scheduled to visit Pali village, 17 km from here, to address a gathering.
This will be Modi's first visit to Jammu and Kashmir other than borders since the abrogation of the special status of the erstwhile state and its bifurcation in August 2019.
He had celebrated Diwali with Army jawans on October 27, 2019 in Rajouri and on November 3, 2021 in Nowshera sector in Jammu division.