Police said fighting erupted in the northwestern area of Handwara on Tuesday after Indian troops killed three militants during a counterinsurgency operation. "The contact was established and the firefight started", he said.
He said the militants were asked to surrender but they opened fire on security forces.
State DGP S P Vaid hailed the security force for their "excellent work" in counterpoising the three terrorists.
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Immediately a joint operation was launched by the army, special operations group of J&K police and CRPF in the area. A local ultra, who had fled the encounter when top commander Sabzar Bhat was neutralized in May, was finally killed by the security forces in an encounter in Tral forests of south Kashmir on Monday.
General officer commanding of the Srinagar-based Chinar Corps, Lieutenant General JS Sandhu, had said the army has to deal with a "very difficult" terrain along the LoC, where the visibility is sometimes low, terrorists manage to infiltrate due to this. In a separate encounter in the same district, an Army jawan was killed.