Two people were wounded Tuesday in a grenade attack in Indian- controlled Kashmir, police said. The grenade attack was carried out in the afternoon at frontier Kupwara town, around 96 km northwest of Srinagar city, the summer capital of Indian-controlled Kashmir. Police said the grenade attack carried out by suspected militants in the marketplace was aimed at an Indian army bunker in bus terminal. The grenade blasted with a bang triggering panic among the residents, locals said. \"Two people were wounded in a grenade explosion in main town of Kupwara today,\" said Superintendent of Police posted in the town. Soon after the attack, contingents of police and paramilitary troopers cordoned the area and started search operations to arrest the suspected militants. Police spokesman said another grenade found in Kupwara\'s Trehgam village was diffused by the police\'s bomb disposal squad without causing any harm. Last week three grenade attacks were carried out in the region which wounded civilians and paramilitary troopers. So far, no militant group has claimed responsibility for any of these attacks. The attacks are being carried out at a time when the local government is contemplating to revoke the Armed Forces Special Powers Act (AFSPA) from some parts of the region. Reports said Indian army has reservations with the curtailing of AFSPA from Indian-controlled Kashmir.