Ganderbal district on Sunday, officials said.
The terrorists opened fire on a camp housing labourers of a private company working on the construction of a tunnel in the Gund area of the district, they said.
Two labourers died on the spot while two others sustained injuries, the officials said, adding that further details are awaited.
Police and the Army have cordoned off the area to trace the attackers.
The incident occurred four days after a new government was sworn-in in the Union Territory.
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