Army and BSF have arrested two Pakistani nationals during search operations in the Uri sector on Wednesday.
Times of India reported that both were interrogated to establish if they were planning to attack Indian establishments in the Valley.
On the other hand, the intelligence agencies have warned that Pakistan-backed militants are waiting to infiltrate into the Indian side in Kashmir.
The agencies have specifically highlighted that 40 to 50 terrorists are hiding near the launching pads in areas close to the border.
Following the recent attacks at Kashmir's Uri sector, a red alert has been sounded in the state.
Earlier on Tuesday, ten militants were killed in an encounter by Army in Uri sector while foiling an infiltration bid.
According to the Army, infiltration attempts from across the border have increased this year in comparison with the past three to four years.
Pointing out that 19 infiltration bids had been repelled so far this year, the Army described it as a 'desperate attempt' by Pakistan to create unrest in Kashmir.
The Valley has been on the boil ever since the killing of Hizbul militants Burhan Wani in an encounter on July 8.