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Police on Friday claim to have foiled a suspected terrorist plot to attack the IT hub of Bangalore following the arrest of two men believed to be Pakistani nationals in the south of the country.
The two men were held after an overnight gunbattle with police in Mysore, they said.
A plan to attack a prominent government building in Bangalore, home to India's top computer software and back-office firms, was uncovered, they added.
"Our men had to return fire after the terrorists opened fire," Praveen Sood, Mysore's Police Commissioner, said. "Two of our policemen have been injured."
He said an AK-47 rifle, a laptop, a satellite phone and a Pakistani passport had been seized from the men.
Sood said police had found plans of Vikas Soudha building in Bangalore - a newly built government administration block - on the men.
"They had done a comprehensive survey of Vikas Soudha in Bangalore and were planning an attack on it," he said.
"Based on initial interrogation and literature seized from the laptop, we have conclusive evidence that they belonged to Al-Badr organisation in Pakistan," said Sood.
Al-Badr is a Pakistan-based Islamist terrorist outfit fighting against Indian rule in Kashmir. Indian security agencies say it is made up mostly of terrorists from Pakistan and Afghanistan.
They say Pakistan-based Islamist groups have been increasingly planning to attack targets spread across India and particularly hit symbols of India's progress such as Bangalore.
Last December, an attack on the Indian Institute of Science in Bangalore, one of India's top colleges, was blamed on Pakistan's Lashkar-e-Taiba group. One teacher was killed in that incident.
Security forces were searching Mysore for more terrorists.
Sood said police had been on the look out for terrorists for weeks after receiving intelligence information that they were infiltrating the city.
Two members of the Islamic militant group Al-Badr have been arrested in Mysore after a gun-battle with police early Friday morning.

Police said that they were planning a "devastating" terrorist attack in the state by attacking Vidhan Soudha in Bangalore, which houses the state secretariat and legislative assembly.

According to Karnataka DGP B S Sial, they were intercepted by police when they were riding a bike early morning and apprehended after a shootout. The gunfight took place near the city's Vijaynagar extension. Two police constables and one of the militants sustained minor injuries. 

Sial said, an AK-47 rifle, a foreign made pistol, a cell phone, detonators, a digital camera and passports were also recovered from them.

The two Pakistani militants have been identified as Mohd Ali Hussain from Karachi and Mohd Fahad from Manshera. The men were hiding in Mysore for the last two or three months. 

Husain is thought to have crossed the Line of Control in June this year through the Rajwar forests in northern Kashmir.  He hid himself in the Harwan area until he received instructions to travel to Mysore.

Al-Badr operatives have financed  Rs. 300,000 to the Srinagar cell led by an operative code named "Imran".  Hussain has been linked to this cell.  Investigators believe that Hussain was one of several Al-Badr operatives despatched to execute terror strikes outside Jammu and Kashmir. 

Al-Badr was allegedly formed by the Pakistani Inter-Services Intelligence (ISI) in June 1998.