An army official said the area around the Entrepreneurship Development Institute (EDI) premises has been cordoned off and exchange of fire was going on.
"Security forces have launched a fresh offensive this morning to flush-out the militants," the official said.
Two to three militants stormed into the EDI complexes in the wee hours yesterday and took positions inside one of the buildings.
The ultras could have entered the complex from the riverside but that can only be ascertained once the operation is over.
In the initial exchange of fire, one army soldier was injured, the official said.
The security forces yesterday used mortar shells, Light Machine Guns and other small arms to flush out the militants but so far have not been successful, the official said.
Militants had targeted the EDI building in February this year as well.
Five security force personnel including two young army officers and a civilian employee of the Institute and three militants were killed in that operation that lasted 48 hours.
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