The area has been cordoned off and a search operation is in progress, he said.
Earlier this month, the Election Commission had announced that the dates for Assembly polls will be announced after the conclusion of Amarnath Yatra.
No commercial vehicle like private buses, mini-buses, trucks, taxis and auto-rickshaws plied on roads from Lakhanpur to Kashmir to Ladakh as all transport associations in the state joined the protest.
The chief secretary reviewed the facilities for the safe, smooth and secure movement of pilgrims, especially along the Jammu-Srinagar national highway and Baltal and Chandanwari route.
In a statement, the poll panel said it has unanimously decided that 'holding of assembly elections in Jammu and Kashmir shall be considered later in this year'.
The home minister was briefed about the ground situation in the sensitive state, which has been hit by militancy for the last three decades and security arrangements being in place there, officials said.
Security forces launched a cordon and search operation in Dragad Sugan area of south Kashmir following a tip-off about the presence of militants
Officials said shops, fuel stations and other business establishments re-opened this morning while public transport also operated normally.
Officials confirmed the presence of Musa at the encounter site and said more security forces were rushed to the area to prevent the terrorists from escaping under the cover of darkness.
They said that a locality in Tral of Pulwama district was cordoned by security forces this evening following a specific input. The forces were fired upon by terrorists trapped inside a house.
He said Jammu and Kashmir is very much like any other state of the Indian union.
The home minister also said a decision on holding assembly elections in the state was the prerogative of the Election Commission but indicated a decision could be announced after the completion of the Lok Sabha polls.
Jammu and Kashmir is unique in many ways as a state of the republic of India.
A shutdown was also observed in Kargil town as locals took out a protest march against the rape of a three-year-old girl.
Former J&K Chief Minister and PDP leader Mehbooba Mufti has demanded that the accused should be “stoned to death”.
Shah said former J&K CM Omar Abdullah said there should be another PM for the state whereas Congress in its manifesto declared it will review AFSPA in Kashmir and amend provisions of sedition law.
ISIS did not elaborate on the branch's geographical remit as it mentioned the name of its new branch in a low-key announcement.
CCTV footage of the alleged incident also came to light. In the video, several BJP leaders, including Raina, could be seen distributing envelopes among journalists
Major Gogoi hit the headlines after he tied a man to a jeep purportedly as a shield against an unruly mob which was hurling stones during a by-poll at Budgam, which forms part of the Srinagar Lok Sabha seat, on April 9, 2017.
Militants shot dead BJP's district vice-president Gul Mohammed Mir in his house in Anantnag district on May 4 night.
National Conference leader Omar Abdullah and PDP president Mehbooba Mufti condemned Mir's killing.
The armed insurgency in the Indian-ruled portion of Kashmir is one of the world's longest-running. Nearly 50,000 have died as a result of the conflict in the last three decades, according to official figures.
Its manifesto shows it is now a liberal social democratic party that values civil liberties
The sources said the 'full commission' comprising the chief election commissioner and two fellow commissioners will meet on April 30 to discuss the possible dates of the Jammu and Kashmir Assembly polls.
She is among the 18 candidates who are contesting elections from Anantnag Lok Sabha constituency, which goes to polls in three rounds, starting Tuesday