The encounter between the forces and militants has been started in Batmurran Kellar area of district Shopian on Monday evening.
Reports said that the firing has been started from both the sides and three militants are believed to be trapped inside.
Earlier massive clashes erupted between the forces and people in Batmurran Kellar area after youth took to the streets and pelted stones on government forces, triggering massive clashes.
The cordon and search operation was launched by 44 Rashtriya Rifles, special operation group of police and 14 battalions of Central Reserve Force after receiving inputs about the presence of the militants in the area,
The firing from both the sides was going in when this report was filled