Security forces had put up a check post near Bandipora police station following information that a militant was going to travel through the area, a police official said.
When the militant came in a cab, he was challenged by security forces but he opened fire, resulting in injuries to two soldiers, police said.
In the retaliatory firing by the security forces, the militant, identified as Mushtaq Ahmad Shergujri, was killed, he added.
A pistol and a hand grenade were recovered from the scene of the shootout, the official said.
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