The injured ultra activist was rushed to Simdega Sadar Hospital, Superintendent of Police Rajeev Ranjan Singh said.
The activist, identified as Roshing Bhengra is a resident of adjoining Khunti district, Singh said.
He said that four to five other ultras managed to escape.
He also claimed that they were also injured during the encounter.
Led by Additional Superintendent of Police, Nirmal Gope, CRPF security personnel and district armed police recovered three firearms from the spot.
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