Colonel M M Rai, commanding officer of 42 Rashtriya Rifles, and a policeman were killed in the gunbattle at Mindora village of Tral, 36 km from here, an Army spokesman said.
He said two militants, both locals, were also killed in the operation which left a soldier seriously injured.
Col Rai was among the gallantry medal awardees announced on the eve of Republic Day. He was awarded Yudh Seva medal for his role in a gunbattle with militants in south Kashmir last year, the spokesman said.
The slain militants have been identified as Adil Khan, a local resident of Mindora, and Shiraz Dar. Both were affiliated with Hizbul Mujahideen outfit, police said.
Some arms and ammunition have recovered from the scene of the encounter.
