"The hiding militants fired at the security forces, triggering the encounter which is still on", the officer said.
He said the injured policeman was rushed to a hospital, where his condition was stated to be stable.
A statement issued by the police here said that the militants had attacked the security men guarding the BJP activist while he was visiting Arsh Institute at Khonmoh.
BJP leader Anwar Khan attacked by terrorists at Khanmoh in Pulwama district.
Government forces resorted to aerial firing in Pampore after scores of protesters pelted rocks on them on Thursday.
CRPF claimed that the two militants have been killed so far in the encounter even as there was no confirmation from police or army. Police have registered a case under relevant sections and investigation is in progress, the spokesman added. One policeman injured; More details awaited.
Director General of Police, S.P Vaid said that three militants in an undisclosed location are trapped and engaged in encounter after an unsuccessful attempt of weapon snatching from PSO.
A number of militants from different terror outfits, including the Kashmir Hizbul Mujahideen, have joined the Ansar Ghazwat-ul-Hind in recent months, thus swelling its ranks.