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Police said three civilians, two homeguards and a superintendent of police were killed in the attack as a fierce gunbattle still raged. Several were injured. 

Heavy exchange of fire is going on in Punjab's Gurdaspur district where Pakistani terrorist who sneaked into India through Jammu border early on Monday morning, are now holed up in a police station after gunning down four bus passengers.

Reports said more than 300 soldiers are involved in the operation to neutralise the terrorists. Aerial surveillance of the area is also going on.

The Army has reached Dinanagar to reinforce the police, who have cordoned off the area. The elite National Security Guard or NSG is on standby.

Union Home Minister Rajnath Singh said he has instructed the  Border Security Force (BSF) to 'step up vigil on the India-Pakistan border' in the wake of attack in Gurudaspur.

The terrorists, numbering about four, are holed up in Dinanagr police station which they stormed into .

Prime Minister Narendra Modi met Defence Minister Manohar Parrikar, Finance Minister Arun Jaitley. Ministers Venkaiah Naidu, Nitin Gadkari also present in the meeting.

All trains on the Gurdaspur track have been stopped. Bomb squad is at the spot after recovery of few live bombs on railway tracks.

The Home Minister  has convened a meeting of all top officers relating to internal security including National Security Advisor Ajit Doval and Union Home Secretary LC Goyal among others to discuss the Gurudaspur attack.

He has spoken to Punjab Chief Minister Parkash Singh Badal who apprised him of the developing situation in Gurudaspur.

 Soon after, the Home Minister tweeted saying, "the MHA is monitoring the situation in Gurudaspur and Punjab. I am confident that the situation will be soon brought in control."

Minister of state for Home Affairs Kiren Rijju has said there is no news of any hostage crisis and it is "too early to give the exact number of casualties as of now." Some people have been admitted to hospital, he said.

Punjab Chief Minister's  Media advisor Harcharan Bains said: "Our attempt is to capture the terrorists alive so that we get to know details from them. Our aim is to limit the extent of damage they do. State government and Central government working in close coordination."

"We have no information on what is going on inside the police station. We have not been able to reach inside the police station. The forces on the ground are coordinating with the other forces," he said.

The terrorists in army fatigue reportedly crossed the border at Hiranagar in Jammu and entered Punjab in a white Maruti 800 they hijacked.

Before they attacked the police station at about 5.45 am, the terrorists opened fire at a Punjab Roadways bus. Seven people are said to be injured in the attacks so far.
 
The terrorists in army fatigue reportedly crossed the border at Hiranagar in Jammu and entered Punjab in a white Maruti 800 they hijacked.

 Punjab Chief Minister Parkash Singh Badal has rushed the state Director General of Police to the spot, the state government said.  It said the Chief Minister was closeted with advisors and was "keeping close minute to minute watch on the situation."

Badal, apparently blaming the Union government, said the terrorists were not from Punjab, but had come from  the border. "It's the Centre's job to seal the border," he said.

Former Jammu and Kashmir chief minister Omar Abdullah on Monday said the attack in Punjab is eerily similar to attacks in the border belt of Jammu.

"Will be very interested to see what emerges about the identity of the terrorists involved in the Gurdaspur attack this morning,"  Abdullah tweeted after terrorists stormed a police station in Punjab's Dinanagar town.

"The timing of the attack, methodology and location are all eerily similar to attacks in the border belt of Jammu," he said in another tweet.
  

Meanwhile, the opposition Congress on Monday attacked Prime Minister Narendra Modi on the Gurdaspur terror attacks, demanding to know "what happened after Modi-Nawaz Sharif meeting" in Russia's Ufa.