The terrorists opened fire on the army camp at Langate in Kupwara district at around 5 AM, which was retaliated by the jawans, a senior army officer said.
After repulsing the attack, the army launched a search operation in the area, during which the militants fired upon them, leading to an encounter.
Briefing the media on the operation, Commanding Officer Colonel Rajiv Sharang said the three militants were challenged by jawans after they noticed suspicious movement near the perimeter fencing of the camp.
"We used illumination rounds to illuminate the area and killed all the three terrorists," Col Sharang told reporters at Langate.
The army officer said the forces have recovered a huge cache of arms and ammunition from the slain militants.
The recoveries included three AK rifles, three Under Barrel Grenade Launchers, a number of magazines, significant rounds of bullets, 4 walkie talkie radio sets, three GPS devices, three mobile phones, dry fruits and medicines besides a map and a matrix sheet.
"The maps and the matrix sheet, which they were using, that also is being analysed. If we come to know more from it, we will let you know," he added.
Asked whether there could have been more militants, Col Sharang said, "there could have been more but we had spotted only three. So we take it that there were only three terrorists who had approached the periphery fencing."
He said the search and sensitisation operation in the area was still on. "We will share more details about the operation with you whenever we have it," he said.
Recovery of dry fruits and medicines indicate that the terrorists had planned to penetrate the camp and engage the army for a long time.
The attack came less than a month after terrorists stormed an army camp in Uri and less than two weeks after the cross-LoC surgical strike carried out by the Indian forces against terror camps in Pakistan-occupied Kashmir.
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