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Militants and Indian paramilitary forces are locked in a fierce battle in Srinagar, Kashmir.
Five paramilitary personnel and two militants were killed in the violence outside a public school on Wednesday.
The gun fight started after two unidentified militants attacked a paramilitary camp on the Indian side of the disputed Kashmir.
Inspector General of Police Abdul Gani Mir confirmed the deaths and said the militants attacked the division with grenades, as children played in the school's nearby cricket field.
Heavy security has been deployed in the region and search operations are ongoing.
The restive region has witnessed numerous militant attacks and an ongoing insurgency in the last two decades.
The Himalayan region is one of the world's most militarised zones.