Army and paramilitary forces conducted search operations along the Indo-Pakistan border on Saturday, following running gun battles with infiltrators from Pakistan for more than ten days.
According to media reports, about 30 to 40 heavily-armed fighters crossed the Line of Control (LoC) in the Keran sector and are holed up in thick forests in the area.
The army has killed 10 to 12 of them. Recently, another group of 10 men had tried to cross over to join the militants holed up some 200 to 300 metres in Kashmir.
"I hope that the government will listen to President, if not us, and would understand his indication. A very strange thing is happening. Honourable Prime Minister is holding dialogue, he his insisting on it and from there (Pakistan) infiltration is taking place, which is not normal," said BJP leader Murali Manohar Joshi in New Delhi.
There was no immediate comment from Pakistan. Islamabad denies it is helping militants cross the largely fenced border with India and has urged India to hold talks to tackle the decades old dispute over the region.
The latest fighting was taking place as Prime Minister Manmohan Singh and his Pakistani counterpart Nawaz Sharif pledged in New York last weekend to work towards strengthening a 10-year-old ceasefire that has frayed in recent months.
But they failed to announce any concrete measures to advance peace talks that have been slow to recover since 2008 when Pakistan-based militants attacked Mumbai for three days and killed 166 people.
The Himalayan region is one of the world's most militarised zones, with India deploying more than 1.3 million troops to quell the rebellion that triggered off in 1989.
India and Pakistan have fought three wars since gaining independence from Britain in 1947, two of them over Kashmir.