Heavy security and a bandh marked the Republic Day in Jammu and Kashmir even as the main parade in Srinagar on Sunday passed off smoothly.

Finance Minister Muzzafar Hussain Beig unfurled the tricolour and took the salute after inspecting the parade.

In his Republic Day message, J&K Chief Minister Mufti Mohammed Sayeed said that while the rest of the country has been enjoying democracy ever since India attained independence, Kashmir had a democratic experience only in October last year.

"People of the state, for the first time, witnessed the power of the ballot that triumphed even the bullet," he said.

"This transparent election has thrown up a historic opportunity for the nation to ensure return of peace and extend to J&K the benefit of economic advancement registered in the country. If the nation fails to avail of this opening today, we are bound to miss the bus."

"When Kashmir is called the crown of India and core of Indian nationhood, why doesn't the nation ensure that the crown continues to glitter and the aching heart gets proper treatment?" the Mufti asked.

Immediately after the end of the R-Day function, some militants hurled a grenade, which exploded near a mosque in the Lal Mandi locality. There was, however, no damage to life or property.

Streets wore a deserted look as a strike called by the separatist All Parties Hurriyat Conference evoked a complete response for the second day in the capital.

All business establishments in Srinagar and some other towns in the state remained closed.

Following reports that militants may disrupt the main function, the state administration had made tight security arrangements in the state.

The Border Security Force, Central Reserve Police Force and state police provided heavy security as contingents of paramilitary forces, local police and students from two police schools marched past the podium in Bakshi stadium in Srinagar.

Fearing suicide attacks, security forces had blocked all roads leading to the stadium. No movement was allowed in the localities around the stadium.

The only civilian participation in the function on Sunday was in the form of about four thousand people, brought in buses from adjoining villages.

Security forces vehicles were seen patrolling the deserted streets in the capital.

Meanwhile, on Sunday morning, security forces cordoned off Wagoora village in Baramulla district after militants hiding in the village opened fire and killed a soldier. Soldiers shot dead three militants in the gun battle that followed.