SRINAGAR, India, July 18 (Reuters) - At least 30 people, including 10 children, were wounded on Friday when suspected separatist militants lobbed a grenade near a crowded bus stop in Indian Kashmir, police said.

No militant group has claimed responsibility for the grenade attack, aimed at a security patrol in Banihal town, 110 km (68 miles) south of Srinagar, Kashmir's summer capital.

"The injured included some security personnel and school going children," a police official said.

On Thursday, a villager was killed and his son was seriously wounded when a bomb exploded in the neighbouring area of Awantipora.

The fresh violence comes ahead of India-Pakistan peace talks next week.

Officials say violence involving Indian troops and separatist militants has declined in Kashmir since the two south Asian neighbours, who have fought wars over the region, began a slow-moving peace process in 2004.

But they have made no significant progress in resolving their dispute over Muslim-majority Kashmir.

Tens of thousands of people have been killed since revolt against Indian rule broke out in the region in 1989. (Reporting by Sheikh Mushtaq and Ashok Pahalwan; Editing by Alistair Scrutton and Alex Richardson) (For the latest Reuters news on India see: http://in.reuters.com for blogs see http://blogs.reuters.com/in/)

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