One terrorist was killed in a fierce gun battle between security forces and suspected terrorists in Awantipora village of Pulwama district in south Kashmir on Thursday morning.
Security forces from the CRPF and Special Operation Group (SOG) of Jammu and Kashmir police have started search operations and cordoned off the area where two-three militants of the group were holed up.
The Army was deployed in the area to carry out combing operations.
"Two heavily armed terrorists are believed to be trapped in a house. Troops of 130 Battalion CRPF, 55 Rashtriya Rifles and SOG Pulwama are involved in the operations," police said.
Locals said gunshots were heard after security forces have sealed all the entry and exit points.
Meanwhile, the Bannihal-Baramulla train service has been suspended as the railway track moves close to encounter site in Padgampora village.
This is the second major encounter in the area in last four days. Last week, top Hizbul Mujahideen militant Aqib Maulvi was killed along with a Pakistan based Jaish-e-Mohammed militant Osama in Tral area of Pulwama district.