SRINAGAR, June 13 (AFP): Suspected Muslim militants shot dead a counter-insurgency policeman and a civilian at a busy bus terminal in Indian Kashmir Saturday, police said.

The attack took place in northern Sopore town, about 50 kilometres from the summer capital Srinagar.

"The killings sparked panic in the busy terminal as people ran for cover fearing police retaliation," a police spokesman said, adding the dead officer was a member of the force's special operations group.

No group has claimed responsibility for the killings. Rebels often target security forces and civilians they suspect of working as informers.