An encounter broke out on Monday between a team of army personnel and unidentified militants in a forest in Assam's Tinsukia district, a defence spokesperson said.
"The exchange of fire started around 9.20 am in Barpathar when the Army team was patrolling the area," he said.
"The army patrol party was out on routine duty when the encounter started. Details are awaited. The operation is still going on," he said.
Locals claimed that they heard the sound of at least one major explosion.
The Pengeri-Digboi Road has been closed for the general public and additional forces, including the state police, have been deployed in the area.