Six JeM militants were gunned down in an encounter with security forces at Tral in South Kashmir on Saturday.
A Defence spokesman said a heavily armed JeM team ambushed a CRPF team in Lurgam, 40 km from Srinagar on Saturday morning.
"The security forces are engaged in a fierce gunbattle," Colonel Manjinder Singh told rediff.com.
He said a huge cache of arms and ammunition had been recovered from the militants.
The operation is still continuing.