Srinagar, Feb 19 : Three unidentified terrorists were killed in an encounter in south Kashmir's Shopian district on Friday, while in a separate gun battle still underway a policeman was killed and a second injured in central Kashmir's Budgam district, officials said. The Shopian encounter started between terrorists and security forces in Badigam on Thursday night. It took place after security forces cordoned off the area and launched a search operation on the basis of specific information about militant presence. As the security forces zeroed in on the spot where terrorists were hiding they came under a heavy volume of fire that triggered the encounter. The gunfight has stopped, the security forces are searching the area. Arms and ammunition has been recovered from the encounter spot. "Three unidentified terrorists have been killed in the Shopian encounter. Incriminating materials, including arms and ammunition recovered. Search is going on," the police said. In a second encounter underway at Beerwah in Budgam district "Special Police Officer (SPO) Mohammad Altaf was martyred and SgCt Manzoor Ahmad injured," police said. /IANS