After a lull of 24 hours, firing resumed between the terrorists and security forces at Rawalpora in South Kashmir's Shopian district, officials said on Monday.
"Encounter resumes at Rawalpora in Shopian," police said.
The encounter, which has entered its third day, started on Saturday after specific inputs regarding the presence of terrorists. A joint cordon and search operation was launched by the police, army's 34 RR and the CRPF.
The police said during the search operation, after the presence of terrorists was ascertained, they were given opportunity to surrender. However, the terrorists fired indiscriminately upon the joint search party, which was retaliated leading to an encounter.
Due to darkness, the operation was suspended. However, the cordon remained intact throughout night.
Police said on Sunday morning repeated announcements were made to the hiding terrorists to surrender but the terrorists fired on the joint search party which was retaliated and so far one terrorist has been killed.
The slain terrorist has been identified as Jahangir Ahmad Wani, son of late Abdul Rehman Wani, a resident of Rakh Narapora Shopian. The police said Jahangir was affiliated with the proscribed terror outfit Lashkar-e-Taiba.
"Arms and ammunition, including the US made M4 Carbine rifle and other incriminating materials were recovered from the site of encounter so far. All the recovered materials have been taken into case records for further investigation and to probe his complicity in other terror crimes," police said.
"During the encounter, three houses caught fire while as a group of miscreants tried to disrupt the operation and created law and order problem near the encounter site during which some miscreants were also injured. However, to track the other hiding terrorists, cordon and search operation in the area is still going on."