Security forces launched a search operation in Kanchipora village of Tangmarg, 35 kms from here, following information about presence of two militants in the area, a police official said.
Exchange of fire between the two sides started at 6.30 am but so far no casualties were reported from either side, he said.
Two terrorists reportedly belonging to Hizbul Mujahideen were holed up in the area. The security forces eliminated both the terrorists after hours of gunbattle.