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Two CRPF personnel also sustained injuries during the fight.
The grenade missed its intended target and landed on the roadside, injuring 11 people.
Police said the explosion damaged the school wall, nearby shops, and a car.
The deceased has been identified as Ajay Kumar Jha, a Bihar native.
The deceased Keralite, Vishnu R, 35, was a native of Palode in Thiruvananthapuram.
The militants attacked an IRBn (India Reserve Battalion) camp at Naranseina in the Moirang police station area.
The exchange of fire occurred near the Tekalgudem village when a joint team of security personnel was out on a search operation.
Central government asks the states to provide Z Plus security to Arif Muhammad Khan wherever he goes in the country.
Pinarayi Vijayan has put Arif Mohammed Khan in a bracket with a group of RSS activists in Kerala who allegedly have Z-plus security from the Centre.
Educational qualification is Class 10 pass. Both men and women can apply.
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