At least 25 soldiers, including fire services personnel, were injured in a major fire at the ammunition depot in Khandroo army camp of Anantnag District.
Two helicopter took the injured to the Badamibagh cantonment, the headquarter of the Army's 15 Corps, defence spokesman Lt Colnol A K Mathur said.
A portion of the blaze has been brought under control, but the situation would be declared normal only after all the shells have stopped exploding, he added.
The army and police have evacuated at least 2,000 villagers living within one kilometre radius from the ordinance depot, the sources said.
Senior army and civil officials have rushed to the spot. Army is likely to order a court of inquiry into the incident, they added.