A fresh contact was established with the holed up terrorists after several hours of intense search operation despite inclement weather in a village along the Jammu-Kishtwar national highway on Saturday, officials said.
The terrorists, believed to be two in number, were located by the security search parties inside a house at Batote main market around 1 pm, leading to a fresh exchange of fire between the two sides, they said.
The officials said heavy firing was going on between the two sides when last reports were received and further details are awaited.
In the morning, the terrorists hurled a grenade and opened fire at the Quick Reaction Team (QRT) of the Army at Dharmund village, leading to a brief exchange of fire.
Reinforcements were immediately rushed and the whole area was cordoned off to neutralise the terrorists, who are believed to have come from the Kishtwar side and had reportedly spent the night at an abandoned temporary shelter shed on the highway, the officials
said.
Earlier, Jammu-based defence spokesman Lt Col Devender Anand said, "Today (Saturday) morning at about 7.30 am, two suspicious individuals tried to stop a civilian vehicle at the general area Batote on the highway. The driver was alert, did not stop the vehicle and rushed and informed the nearest Army post."
"The quick reaction team reacted promptly and contact was established with the suspicious individuals," he said.
The officials said security forces came under fire from a house during the course of search operation.
The house owner is believed to be present inside the house while other members have been evacuated to safety after they managed to come out, they said, adding the ultras had forced their entry into the house while being chased by the security forces.
Efforts are on to safely evacuate the trapped civilian, the officials said.
The movement of the traffic on the highway was stopped following the incident as a precautionary measure, they said.