The incident took place at around 9:30 am at Amdai Ghati (valley) under Chhote Dongar police station limits, district superintendent of police Abhishek Meena told PTI.
Road construction and mining works are underway in Amdai region, which is around 350 kms away from the state capital.
Naxals detonated a powerful IED when a joint team of district police and the Chhattisgarh Armed Force (CAF) was escorting a group of labourers through the valley.
It was followed by a gun-battle, lasting for about two hours, after which the Naxals fled, he said.
A security personnel also sustained minor injuries as he fell from a rock during the encounter.
Reinforcement was rushed to the spot and the bodies were being evacuated, he said.
A combing operation was launched to nab the rebels, Meena added.
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