"Firing was on our vehicle. One Sub Inspector lost his life and two of our personnel are injured. We have cordoned the area," Inspector General CRPF Ravideep Sahi told NDTV.
Terrorists opened fire upon a team of the 29th Battalion of the CRPF near Panth Chowk bypass in Srinagar around 5:50 pm, officials said, adding that the CRPF men fired back at the terrorists.
With the area being a busy market place, the terrorists managed to escape.
Reinforcements have been rushed to the area and a search operation was launched to track down the terrorists, officials added.
No terror outfit has so far claimed responsibility for the attack.
For the last few days, terrorists have intensified their attacks on security forces.