Acting on specific input about presence of militants in Ratnipora area of the district, a joint team of police and army cordoned off the area and launched a search operation, police said.
As the search operation was going on, the hiding militants fired on the security forces, the police said.
The security forces retaliated triggering an encounter, they said.
The operation was going on till last reports came in, the police said, adding there were no casualty so far in the gunbattle.
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