Personnel of the Army's Rashtriya Rifles, the Central Reserve Police Force (CRPF) and the Special Operations Group of the state police surrounded Larnoo village in Anantnag following a tip about the presence of some militants.
The encounter broke out early morning today after a joint team of the Jammu and Kashmir Police and the Indian Army cordoned off an area in Anantnag's Kokernag forest.
The identities of the slain militants are yet to be ascertained. Of them, Khalid Ahmed Dar, 22, who was shot in the neck, succumbed to his injury at the Kulgam district hospital, the officer said.
The security forces also retaliated ensuing in an encounter, he said, adding that a militant was killed in the exchange of fire.
He said the operation was still going on when the reports last came in.
Hailing from Wangund, Kaimuh village, Farhan had joined Hizbul on June 13 a year ago.
The situation in Khuwdani worsened with the news reaching the area that another local resident has been killed after being hit by a Border Security Force (BSF) vehicle in Vessu area of Kulgam.
Wani's death agitated the crowd further and it started pelting stones at a nearby Army camp, officials said. One of the two terrorists killed was identified as Mohd Furhan Wani.
"The injured youth, Yasir Dar, is under treatment with an injury to his shoulder".
While Internet services were suspended in south Kashmir, there were protests in Kulgam's Khudwani village from where one of the militants hailed.
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