(Updates with deaths, defence ministry statement)

SRINAGAR, India, Aug 11 (Reuters) - A fire at an Indian army ammunition depot in Kashmir killed at least three people, two of them soldiers, as it sent shells and shrapnel ripping through the area, officials and witnesses said.

More than 10,000 people were evacuated from nearby villages in the Anantnag district of south Kashmir. At least 30 people were wounded.

The cause of the blast was being investigated. The Ministry of Defence denied claims from two militant groups, including the most prominent Hizbul Mujahideen, of a rocket attack on the depot. The claims were made by telephone to a local news agency.

The defence ministry said 15 to 20 army personnel were among the wounded.

Army spokesman Lieutenant-Colonel A.K. Mathur said efforts were continuing to control the blaze.

Police vehicles fitted with loudspeakers patrolled the area asking people to leave as large clouds of smoke rose from the depot, witnesses said.

One of the world's most militarised zones, Kashmir is in the grip of a revolt against India in which over 42,000 people have been killed since 1989, according to officials. Human rights groups put the toll at about 60,000 dead or missing.

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