Update, 3 January, 2016: At least five terrorists and six security personnel were reported dead in a fierce gun battle that lasted for nearly 15 hours in Pathankot Air Force base on Saturday.

Union Home Minister Rajnath Singh on Saturday evening confirmed that all five terrorists had been killed, The Hindu reported.

Early morning on 2 January, a group of terrorists opened fired at Indian Air Force (IAF) base in Pathankot, Punjab. National Security Guard (NSG), paramilitary forces and IAF personnel led the counter-attack operation and shot the terrorists dead.

No damage was caused to MIG-21 Bison fighter jets, MI-35 attack helicopters and missiles. All families living inside the Air Force station were reportedly safe.

Prime Minister Narendra Modi condemned the terror attack and assured the nation the defence services of the country had great strength, enough to defeat terrorists.

"Today, enemies of humanity who can't see India progress tried to strike at our strategic area, a prominent airbase at Pathankot. I appreciate our armed forces and thank them for foiling our enemy's attempt. Our security forces did not let them succeed. I want to assure our countrymen that our armed forces have the strength to defeat the evil designs of our enemy," Modi said during his address in an event in Mysuru, Karnataka.

Original Story, 2 January, 2016: Fresh firing was reported from inside an Indian Air Force (IAF) base in Pathankot, Punjab, on Saturday, where the search for fifth terrorist is underway, according to PTI. At least four terrorists and three jawans have been killed in the attack on IAF base since Saturday morning.

ANI also reported that there was aerieal firing at Pathankor by IAF helicopters, which have been deployed there.

The fierce gunbattle between the security forces and attackers lasted for a few hours, ABP reported. A team of National Investigating Agency (NIA) personnel has reached Pathankot. The National Security Guard (NSG) has also been called in to conduct the operations.

All the families living inside the Air Force Station are reportedly safe. No damage was caused to fighter jets or helicopter squadrons. 

Heavily-armed terrorists attack IAF base in Pathankot area; three security personnel killed  along with four attackers
Heavily-armed terrorists attack IAF base in Pathankot area; three security personnel killed along with four attackersKBK

Defence Minister Manohar Parrikar has been in touch with IAF chief Air Marshal Arup Raha to set up a high-level meeting with security officials on Saturday evening, Hindustan Times reported. 

Gunshots were first heard near the Air Force station around 5:30 am on Saturday morning.

"Any aggression towards India will receive a befitting reply from our side," Home Minister Rajnath Singh was quoted as saying by ANI.

According to reports, the terrorists are suspected to belong to Jaish-e-Mohammed, a terror outfit operating out of Pakistan. 

The attack comes at a time when India and Pakistan have re-initiated peace talks.