A soldier and two terrorists were killed on Thursday in a heavy exchange of fire in Jammu and Kashmir's Machil sector near the Line of Control (LoC).
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According to the police, the heavily armed guerrillas had infiltrated into the Indian side of the LoC that divides Kashmir between India and Pakistan when they were challenged by the Indian Army.
There was heavy firing on both sides during which one soldier and two guerrillas were killed.
The operation continued and troops were busy searching the area, a police official said.