Till last reports came in, heavy exchange of fire is underway between security forces and militants holed up inside a government building in Pampore area on the outskirts of Srinagar.

"Pampore operation is in the last stage, forces plan to demolish Entrepreneurship Development Institute (EDI) building where terrorists are holed up," said sources.

The militants have been trapped inside the seven-floor hostel building of Jammu and Kashmir's Entrepreneurship Development Institute (JKEDI) located on the banks of the Jhelum river, some 12 km from the Srinagar city centre, since Monday morning, officials said.

Security forces and militants exchanged fire all night.

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A soldier was injured on Monday in a gunfight that erupted after 2-3 militants opened fire at security forces.

"Security forces have surrounded the building and all escape routes of militants were sealed," a police officer said.

HOW MILITANTS REACHED

Residents living nearby said that the militants entered the institute complex from the river side and captured the hostel building.

There were some JKEDI employees inside the complex at the time of the operation, but most of them said they were not sure how the militants got inside.

EDI BUILDING ATTACKED LAST IN FEB

The main building of the institute was razed down in a February shootout when militants had captured it and launched a major attack on the security forces.

Militants had killed six persons - a civilian, three soldiers, and two paramilitary troopers before three militants were gunned down in the battle that raged for nearly three days.

The institute, situated on the strategic arterial road connecting Jammu and Srinagar, has three buildings - a guest house, a hostel complex and the main office building - on a large swathe of 3.5-acre land on the Jhelum.

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The road on which the institute is located is the lifeline not only for local supplies but is the only all-weather link used by the army to reach the Srinagar-based 15 Corps headquarters that is the nerve centre of the fight against militancy in the state.

The area around the building houses a government-owned joinery factory and a highly secured complex of medium and shortwave radio transmitters of Radio Kashmir, Srinagar.

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