Three terrorists holed up inside a government building in Pampore town of Jammu and Kashmir opened fresh fire at security forces on Monday as the gunbattle that has claimed six lives, including two Army captains, continued for the third day.

The militants are hiding inside the Entrepreneurship Development Institute (EDI) building. The exchange of gunfire was on since 5.30 am, officials said.

Two Indian Army captains have been killed in the encounter – Captain Pawan Kumar of 10 para regiment of Jind (Haryana) and Captain Tushar Mahajan of nine para regiment of Udhampur town of Jammu region. They are among six people killed.  The others include a soldier and two paramilitary troopers of the Central Reserve Police Force (CRPF) and a civilian.

The gunfight began on Saturday evening when guerrillas attacked a CRPF bus at Sempora (Pampore) on the Srinagar-Jammu highway. After attacking the bus, the militants entered the JKEDI complex and took shelter in the multi-storeyed building, leading to the shootout with security forces.

The authorities have imposed restrictions in Pampore town where dozens of protesters on Sunday indulged in heavy stone pelting as they tried to march towards the gunfight site.

Captain Mahajan was injured on Friday while leading his team in the smoke-out operation. He died on Sunday at 92 Base Hospital.

According to sources, the security forces have decided to adopt a strategy of wearing down the militants physically as well as in terms of ammunition reserves.

Nearly 100 civilians of the building, including staff and students, were evacuated to safety by the security forces from the building.