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Security forces launched a cordon and search operation in Babgund area of the south Kashmir district during the night after inputs of the presence of militants in the area, a police official said.
He said the search operation turned into an encounter after the militant fired upon the forces who then retaliated.
In the ensuing gunfight, the militant was killed in the morning, the official said.
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Some arms and ammunition have been recovered from the encounter site, the official said, adding the operation has been called off.