Earlier in the day, it killed two terrorists of the Jaish-e-Mohammed (JeM).
"The army has killed two militants in the ongoing operations inside the camp", an army official told Xinhua.
The Minister informed the House that the whole area has been cordoned off by Army and the security forces and operation is underway as militants have taken refuge in JCO quarters in the area. "Deeply disturbed by the terrorist attack in #Sunjwan today".
The operation, which is in its 15th hour at the time of writing, is still on.
What made the lapse glaring is the fact that the attack took place in Jammu, considered relatively safer than the Kashmir Valley where militants find safe passage and shelter among sympathisers to their cause.
In the initial attack, Subedar Madan Lal Chowdhry, his daughter Neha, and Lance Naik Bhadur Singh were injured.
Last year, Jammu and Kashmir police had claimed to have specific intelligence about a possible attack on a CRPF camp in Lethpora in Pulwama.
In Saturday's attack, the terrorists struck before dawn and managed to sneak into the camp from the rear side of the base after a brief exchange of fire with the sentry on its periphery.
Jammu and Kashmir had been on high alert for potential trouble given that February 9 was the death anniversary of Parliament attack convict Afzal Guru while February 11 is the death anniversary of JKLF founder Maqbool Butt.
Chief Minister, Mehbooba Mufti Saturday termed the fidayeen attack on Sunjwan Army camp as "desperate attempt" to break development of pace in the State.
The quick reaction teams of the Indian Army and reinforcements were immediately rushed to the spot to contain the terrorists inside one of the buildings.
"We appeal to the PM to personally supervise the operation from where ever he is so that those behind it are eliminated", said Surjewala.
Director General of Police, S P Vaid; IGP, Jammu, S D S Jamwal, senior officers of Army, Police and civil administration were present on the occasion.
Among the wounded were five women and children, he said.
The National Conference also distanced itself from the Pro-Pakistan slogans that were raised in the assembly after the BJP condemned the attacks.