As troops of India and Pakistan continue to trade fire on the International Border (IB) in the disputed Kashmir region, thousands of families in Indian-controlled Kashmir living along the borderline have fled from their homes, officials said Tuesday.

"Nearly 10,000 people have fled from border villages," a senior government official said.

While some people have gone to live with relatives, majority of the residents have taken shelter in government buildings, mainly schools, earmarked by authorities as temporary accommodation for affected residents.

Tension on IB and Line of Control (LoC) between the two neighbors erupted afresh on the New Year's Eve.

Both New Delhi and Islamabad accused each other of resorting to unprovoked firings and violating cease-fire agreements. And both sides maintained that their troops gave befitting reply to the other side.

The troops on both sides target each other's posts and frontier localities, endangering lives of the residents.

"We want both countries to stop this war-like situation as it has put our lives at risk," Alok Nath, an elderly resident from Hira Nagar told Xinhua over telephone. "We have left everything behind us - the cattle and our belongings."

The residents said the artillery fired by Pakistani troops has damaged their houses and some unexploded shells are scattered in the civilian areas.

"India will not do anything to disturb peace along the border but will retaliate befittingly if the situation demands," Director General of India's Border Security Force, D K Pathak told media in Jammu.

Local government officials have ordered indefinite closure of educational institutions in the vulnerable districts.

Both sides have suffered loss of civilian life as well as causalities of troopers in the fresh spate of firing.

On Monday, an Indian border guard was killed, while as Pakistan said two women were killed on their side in the border skirmishes.

Top officials from both countries have issued stern statements reprimanding each other.

The troops of India and Pakistan intermittently exchange fire on the 720 km-long LoC and 198 km IB in Kashmir, despite an agreement in 2003 to observe cease-fire. Though some violations have been reported on both sides, the cease-fire however remains in effect.

Indian officials said last year, 564 cease-fire violations - 411 along IB and 153 violations along LoC - were recorded.

During the deadly skirmishes, 20 people including six Indian troopers were killed and over 150 wounded on this side. Pakistani side, according to reports, also suffered causalities in the stand- off.

LoC is a de facto border that divides Kashmir into India and Pakistan controlled parts. The LoC on both sides is guarded by army, while IB is guarded by Border Security Force on the Indian side and Pakistan Rangers on the other side. Endi

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