A sentry of 40th battalion of BSF located at Janbazpora in the outskirts of the city located in North Kashmir spotted some suspicious movement near the open kitchen area and started firing apprehending that terrorists may have entered into the camp, sources said.
The firing led to panic in adjacent army camp where troops of 46 Rashtriya Rifles also started firing in the direction in which suspected terrorists were believed to have entered.
Firing continued from all sides and it was not clear whether some terrorists had entered the campus or firing was coming from outside. After 90 minutes of firing, illuminators were used to light up the sky but no terrorist was found, the sources said.
Security officials said the terrorists melted into darkness.
However, it was found that BSF constables Nitin and Pulwinder were injured in the firing and they were rushed to the hospital in Srinagar. Nitin later succumbed to his injuries.
It was not immediately known whether the BSF personnel was killed by the terrorists or had fallen victim to 'friendly fire' as all security establishments have been directed to be on a high alert after the Indian army carried out surgical strikes on launch pads across the Line of Control on September 29.
Udhampur-based Northern Command had tweeted a little after midnight only that "Baramulla incident situation contained and under control".
Surprisingly, Home Ministry spokesman had claimed in the morning that two terrorists had been shot dead but this was corroborated neither by army, BSF or the local police.
The spokesman later said that the report of the killing of two terrorists was a "claim" and it was being "verified".
BSF Inspector General (Kashmir) Vikash Chandra told PTI that at least two terrorists were involved in the attack and the security forces recovered a GPS set, a compass and a wire cutter besides some ammunition this morning after a search was launched near the camp on the banks of the Jhelum river.
"My boys from the spot have confirmed that there were at least two terrorists who were firing at them. There could be few more terrorists, may be two more, but that is not confirmed as of now," he said.
Chandra said the firing started about 10:30 PM last night after the BSF men detected some "suspicious movement" in the vicinity of their camp that they shared with the 46 Rashtriya Rifles of the army.
"Our camp is co-located with the RR. The boys on sentry duty detected suspicious movements and when fire came in they came out of the bunker to effectively take on the terrorists," he said, and claimed that Nitin was grievously injured when a grenade lobbed by terrorists hit him.
According to Chandra, the terrorists melted into the darkness and a search operation is on.