An unknown number of people are still feared to be trapped inside the Entrepreneurship Development Institute (EDI) after nearly 100 staff members and students were evacuated to safety by the security forces, a police official said,
He said efforts were on to ensure that all civilians are evacuated from the premises before the militants could be engaged.
The official said while the exact number of assailants was not yet known but at least one of them was spotted by eyewitnesses entering the compound.
He said one CRPF head constable was killed while 10 other jawans were injured in the initial attack.
Intermittent exchange of firing has been reported from the spot when last reports came in, he added.
Additional forces have been rushed to the area to strengthen the cordon around the EDI complex to prevent the militants from escaping, he added.