More security personnel were rushed to the area after the gunfight erupted to tighten the siege and prevent militants from escaping. "Subsequently our security forces launched an operation in Kaghi forest area and as the security cordon closed in, the heavily armed terrorists resorted to indiscriminate firing triggering a fierce encounter", said the police official.
Indian security forces often open fire at civilians in the name of search operations in held Kashmir.
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"One militant has been killed in the operation".
The terrorists are believed to be trapped now, Army sources said, adding the operation started at 10:30 last night and the first shots were fired early morning today.
"An infiltration bid has been foiled in Machhil sector and two terrorists have been killed", defence spokesman Col. Rajesh Kalia had said. "Terrorists threw the grenade at a Central Reserve Police Force camp near the bank".