MUMBAI - THE Indian military launched a grenade attack on Friday on Mumbai's Taj Mahal Hotel to flush out at least one militant who returned fire, scattering media assembled opposite the building.

Four grenades were launched into a part of the hotel where the militant or militants were believed to be hiding. Fire was returned and an AFP camerawoman at the scene was struck in the leg by a splinter and taken to hospital.

Her condition was not serious.

Police said earlier 'a substantial amount' of explosives were found at the Taj that could have caused 'major damage'.

'At least one terrorist or maximum two' were holed up in the ballroom of the Taj, but no hostages were left inside 'to the best of our knowledge", Maharashtra state police chief A.N. Roy told Indian television.

'We did find explosive boxes at two locations on either side of the Taj.

That was a substantial amount of explosives to cause major damage,' Mr Roy said.

Mr Roy said the discovery included some RDX plastic explosives, used in the military and for demolition work. Tests were to be carried out to determine the exact types of explosives found, he added.

The police chief added that 'at least one terrorist or maximum two' were still holed up in the ballroom of the Taj, one of two luxury hotels seized by extremists late on Wednesday after coordinated attacks across the city.

At least 143 people have been confirmed dead.

Mr Roy's counterpart in the Mumbai city police said earlier that the rescue operation at the nearby Oberoi/Trident hotel was over and they had regained control.

No hostages were left inside the Taj 'to the best of our knowledge' Mr Roy added.

But a special forces operation to end a siege at a nearby Jewish centre was still ongoing, in part due to the death of a senior commando, he added.

Sporadic firing and a number of explosions could be heard throughout the day at the Nariman House complex, after black-clad commandos abseiled onto the building's roof at daybreak, AFP correspondents at the scene said. -- AFP