A police spokesperson reportedly said that the terrorists had secretly opened fire on the patrolling forces in the middle of the day, in the Sopore township of Baramulla district of Jammu and Kashmir.
The security forces had earlier on Monday killed two terrorists while taking action on intelligence inputs. Firing stopped at encounter site, while the body is yet to be retrieved.
He said that one AK-47 rifle and some magazines and grenades were recovered from his possession.
Huge number of people including men and women attended the last rites of slain militant, Amid pro freedom and Islamic slogans Shahid was laid to rest at his ancestral graveyard in Kuchloo village.
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Another 200 people were injured, President Enrique Peña Nieto said, as he declared a national day of mourning, BBC reported. The earthquake's epicenter was 120 kilometers offshore in the Pacific Ocean, 1,000 kilometers southeast of the capital.
Internet services have also been suspended in the area to prevent any misinformation.
He said that as the cordon was tightened, hiding terrorists opened fire at the security forces to break the security cordon and escape but counter fire from the security forces, a fierce encounter started and was still underway.
Rajnath will visit Jammu, Srinagar and Leh and meet civil society members, leaders of political and social organisations, business leaders and others, a Home Ministry official said.