Two security personnel and a policeman were injured as the terrorists fired from inside the Jammu and Kashmir Entrepreneurship Institute (JKEDI) in the fighting that began on Monday.

"Operation against the holed up militants has been resumed. Floodlights were used during the night to ensure that the militants were prevented from escaping under the cover of darkness," a senior police official said.

Rockets and heavy automatic gunfire were used on Tuesday morning to engage the militants.The 70-room, seven-storey building is located at Pampore on the banks of the river Jhelum and 12 km from the Srinagar city centre.

The joint operation was launched by the army, the Special Operations Group of the state police and the Central Reserve Police Force (CRPF).

The main building of the institute was attacked in February when militants captured it and launched a major attack on security forces. Six persons - a civilian, three soldiers and two paramilitary troopers -- were killed then before three militants were shot dead.

Terrorists Used Jhelum To Attack Government Building

One soldier injured in an encounter between security forces and terrorists going on in a government building on the outskirts of Srinagar on Monday.

Gunshots were heard this morning, this site of an encounter is the same place where February encounter took place this year.

A building within the premises of the head office of Jammu and Kashmir Entrepreneurship Development Institute (JKEDI) in Sempora area of Pampore on the outskirts of the city caught fire this morning, a police official said.

According to a NDTV report, the terrorists used boats to cross the Jhelum river, which flows in Pakistan, to reach the building.

Residents living near the conflict area said that the terrorists entered the institute complex from the river side and captured the hostel building and set it on fire.

An army official said soon after the fire, a gunshot was heard from within the premises of JKEDI. The fire tenders, who were rushed to the spot, were however not allowed to enter the building due to security reasons.

An encounter between militants and security forces took place in the premises in February this year which lasted for more than 48 hours.