Jawans of the Rashtriya Rifles Battalion doused the fire at Dagnari in Ramban which has a population of over 300 families, including civilians, a defence spokesman said today.
Seven fire extinguishers were used to put out the flames, he said, adding that no loss to life and property was reported.
In another fire incident, a three-storey building was completely gutted at Foongwari in Balgaran village in Kishtwar.
A minor, identified as Amit Singh, suffered injuries, and a 303 rifle and 50 rounds of Sewa Ram, a Village Defence Committee member, who owned the building, was destroyed in the fire, officials said.
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The MLA directed officials to prepare the compensation cases of all the victims immediately so that they can construct their house again before snowfall.
Saroori also urged the authorities to set up a fire service station at Bunjwah, Chatroo, Sarthal and Bhalessa towns as they were far-flung areas and people suffered from sudden breakout of fire.
He recalled that the Chief Minister Omar Abdullah had promised in the Assembly to set up fire stations in remote and backward areas, but no steps have been taken even after two years.