The Home Minister, who arrived here on September 9, is on a four day visit to the state - two each in Kashmir valley and Jammu region.
A complete shut down is being observed in Occupied Kashmir against Indian Home Minister Rajnath Singh's visit to the held territory on Sunday.
Alleging Pakistan of infiltration militants in Kashmir Rajnath said, "Pakistan should stop infiltrating terrorists into Jammu and Kashmir".
Earlier on Friday, Singh had said,"I am going with an open mind and I am willing to meet all those who come to meet me".
I have been talking to Mr Azad on Kashmir and seek his opinion how to resolve the crisis, the Union Minister said adding that when the delegation will return to New Delhi he will talk to him again about the assessment of the situation here.
The attack took place a kilometre away from the proposed venue of the meeting of the Home Minister with CRPF personnel on Sunday, the official said.
"Five Cs form basis for resolution of problems of Kashmir - compassion, communication, coexistence, confidence building and consistency", he said.
The Union Home Minister said the Centre had approved funds for opening a trauma centre for police personnel and lauded them for working in "extremely challenging conditions" in the Valley.
Contrary to the tough image of his government on security policy, the home minister attempted to offer comforting assurances to the people in Kashmir.
Rajnath had yesterday met a delegation of the opposition National Conference, led by former chief minister Omar Abdullah, over the issue.
Rajnath Singh also talked about martyred soldier Abdul Rashid, and said he was very upset to see the crying and teary eyed face of the martyr's daughter.
NIA has arrested seven separatist leaders, a leading businessman, two youth including a photo-journalist and a Jammu-based Sikh lawyer during its ongoing investigation into the alleged militancy and separatist funding in the State.
Mohammad Yasin Khan, chairman of the Kashmir Economic Alliance - an association of trade and business bodies - said members of the civil society and other organisations had by and large boycotted the minister.
In the agenda of alliance, it was reiterated that the "coalition government will facilitate and help initiate a sustained and meaningful dialogue with all internal stakeholders, which will include all political groups irrespective of their ideological views".
"The premiers of neighbouring countries including Pakistan were invited in oath-taking ceremony of Modi government".
The Union Home Minister later also addressed a Sainik Sammelan at the CRPF 90 Battalion Camp in Anantnag. "I appeal everyone to come to Kashmir", he said. He will also review the Prime Minister's Development Package. "People of Kashmir will welcome you and there is no threat in the Valley", he said.