Terrorists had abducted and later killed Nadeem Manzoor, a resident of Safanagri area, on Thursday night.
The scene of the blast along the B C Road was sealed off by police and a massive hunt has been launched to nab the grenade thrower, Inspector General of Police, Jammu, M K Sinha said.
Two terrorists belonging to terrorist group Lashkar-e-Tayiba and a policeman were killed in a fierce gun battle in Kulgam town in south Kashmir on Monday evening.
Major Kamlesh Pandey and Sepoy Tanzin Chhultim died in hospital.
The suspended officer was produced in the special NIA court along with the two terrorists, who he was helping travel out of Jammu and Kashmir, and their two associates.
Ahead of a crucial meeting on Jammu and Kashmir, National Security Advisor Ajit Doval on Thursday met Union Home Minister Amit Shah and is believed to have discussed the security situation in the Union territory which has witnessed a spate of targeted killings since May 12.
The terrorists were identified by the police as Azad Ahmad Malik of Arwani in Bijbehara, Unais Shafi of Takiya Maqbool Shah, Bijbehara, Basit Ishtiyaq of Pushwara Anantnag, Atif Najar of Waghama Bijbehara, Firdous Ahmad of Muchpuna Pulwama and Shahid Bashir of Kawni Awantipora.
The security forces including army launched a counter-insurgency operation in Chancer area of Kulgam district on Friday night, following information about presence of ultras in the area, police officials said.
After a spell of relative calm, Jammu and Kashmir witnessed a spate of killings of innocent civilians last month, triggering apprehensions of an intense cycle of violence and turmoil in the region.
Curfew remained in force for the second day on Monday in parts of Shopian district in south Kashmir following killing of four persons in a firing incident on Saturday.
Sandeep was nabbed from the same house where LeT commander Bashir Lashkari was killed on July 1. His arrest led to Shah being caught.
Curfew continued for third day on Tuesday in parts of Shopian district in south Kashmir following killing of four persons in a firing incident on Saturday, the police said.
The army had to had to aim at the crowd when jawans claimed to have been fired upon from the other side.
All the victims hailed from Murshidabad district of West Bengal, the police said.
The encounter broke on Monday when the terrorists opened fire on an army convoy, on its way to Srinagar, at Qazigund on Jammu-Srinagar national highway. One soldier was killed in the attack while another sustained injuries.
Two self-styled commanders of Hizbul Mujahideen outfit and a jawan were killed in a 15-hour-long gunbattle between security forces and militants that ended on Thursday morning in Kulgam district of South Kashmir.
The terrorists attacked the guard room of the court complex around 9 pm and snatched five self-loading rifles from the policemen posted there.
Two militants and a civilian were killed in an overnight encounter with security forces in Kulgam district of South Kashmir, police said on Friday.
The officer claimed 88 Kashmiri youths joined militancy in 2016.
Among those abducted included brother of a deputy superintendent of police.
Security forces faced stone-pelting during the operation but exercised maximum restraint.
This is the second encounter in the district in as many days.
The terrorist was shot dead after he opened fire while trying to escape.
Three employees of a BSNL franchise were seriously wounded in a militant attack in Kashmir's Sopore town on Monday morning.
Four terrorists were killed on Friday in an encounter with security forces, while another surrendered in Shopian district of Jammu and Kashmir, officials said.
The police officer said the main aim of the module was to target security forces during the elections and they had even made a failed attempt in Bijbehara area of Anantnag on March 19.
Local residents started pelting security personnel with stones, leading to clashes, they said, adding that some civilians were injured.
Strict restrictions have been imposed in Kupwara town, Kralgund, Handwara, Magam and Langate areas in north Kashmir to maintain law and order.
People on Tuesday took to streets and pelted stones on security forces at several places of Kashmir, including Pampore where a 48-hour gunbattle between three terrorists and the army ended on Monday.
The army has quietly moved an entire brigade into south Kashmir to clear it of militants and protesters.
At least two persons sustained bullet wounds and five others were injured in clashes between protesting mobs and security forces on Tuesday during the funeral of two terrorists killed in Monday's encounter in the Koimoh village of south Kashmir's Kulgam district.
Areas falling under the jurisdiction of 11 police stations Srinagar were also placed under curfew.
Ten incidents of stone pelting were reported from Srinagar, Anantnag, Pulwama, Kulgam, Shopian, Awantipora and Sopore.
The deceased received one gun shot and his body was taken to the hospital for post-mortem.
Terrorists shot at and critically wounded a prominent Communist Party of India-Marxist activist in south Kashmir's Kulgam district on Thursday evening.
Terrorists had laid an ambush and fired indiscriminately when the troops approached the village.
The martyred policemen were identified as Constable Ishfaq Ahmad Mir, Constable Javaid Ahmad Bhat, Constable Mohammad Iqbal Mir and SPO Adil Manzoor Bhat.
The official said five civilians received bullet injuries in the cross-firing near the gunfight site.
Security agencies braced for a march called by separatists on Monday.
The incoming facility on prepaid connections has also been restored, but the outgoing calls are barred.
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