"Militants hurled a grenade at a road opening party (ROP) of the army, and opened fire at them on Srinagar-Jammu highway in Bijbehara town," a senior police official told IANS.
"Three people, including two army soldiers and a civilian, were injured in the explosion," the official said.
The injured were rushed to a nearby hospital for treatment, the official added. The area has been cordoned off for search operations.
Reports said that traffic on the otherwise busy Srinagar-Jammu highway has been suspended because of the explosion.