Gunfight betwen militants and government forces broke out Sunday at Larro area of Kulgam district.
Sources said a cordon and search operation (CASO) was launched following inputs about the presence of militants in the village.
They said the CASO turned into a gunfight after exchange of firing between militants and government forces.
Reports said two to three militants are believed to be trapped in a residential house.
Heavy exchange of firing is going on, according to an official.