The mascot of Kashmir tourism -- the world famous Dal Lake -- was rocked with heavy gunfire and explosions late Tuesday evening after a  group of fidayeens stormed a camp of the paramilitary Central Reserve Police Force located in a hotel inside the lake.

Police sources in Srinagar told rediff.com that one militant has been killed in the shootout, while four members of the CRPF were injured.

They  said a group of heavily armed fidayeens attacked a company headquarters of the CRPF located on a small isle with grenade and assault rifles, injuring four members of the paramilitary force, including a sub-inspector.

"Fidayeens hurled hand grenades and rained bullets on the camp late this  evening. Four CRPF troopers received injuries in the shooting. We are trying to shift the injured to hospital," said a senior CRPF officer.

He said the camp has been surrounded by the paramilitary forces and the holed up militants were engaged in a fierce gun battle. "One militant was shot dead by the CRPF soldiers in the gun battle," the officer said on condition of anonymity.

Paramilitary forces have taken positions in house boats around the hotel. The state police chief Gopal Sharma and other senior police and paramilitary forces have reached the spot.

Talking to rediff.com the Inspector General of CRPF S S Rawat confirmed one  fidayeen has been gunned down so far. "Another fidayeen is holed up inside  the hotel building and we are trying to neutralise him. We have to move carefully in darkness. Heavy firing is going on."

The CRPF camp had been set up for area protection of tourists who go on Shikara joy rides in the lake and those staying in scores of tastefully  decorated luxury house boats moored in the lake.

Almost all the hotels around the fashionable boulevard road are located on  the banks of the lake. Various battalions of the CRPF are headquartered at a number of hotels on the lake.

A spokesman of Al-Mansoorain militant outfit phoned a local agency to claim responsibility for the attack.