Gunfight broke out between armed militant groups in Manipur's Tengnoupal district on Friday, Chief Minister N Biren Singh said.
Security forces have been rushed to the area to contain the situation, he told the assembly.
Both the militant groups belonged to the same community, he added.
Singh said that on Thursday armed men fired on a team of labourers when they went to assemble a pre-fabricated house for the deployment of CRPF near Torbung in the Bishnupur district.
Security forces also retaliated and firing continued for 30 minutes, but no casualties were reported, he said.
The situation is at present normal, he said.
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