He said security forces launched a cordon and search operation in Katpora area of Yaripora in south Kashmir's Kulgam district Saturday evening after receiving specific information about the presence of militants there.
As the forces were conducting the searches, the militants fired on them, he said.
As per policy, the militants were given an opportunity to surrender, but they continued to fire, the official said.
The forces retaliated, ensuing an encounter in which the two militants were killed, he said.
Arms and ammunition were recovered from the encounter site, the official said, adding, no collateral damage has been reported during the encounter.
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