Two Maoists, including a woman, were killed in a gun battle with the police in the forests of Telangana's Warangal district early Tuesday, police said.
The exchange of fire continued even after five hours in the Vengalapur forests in Tadwai mandal of Warangal district, about 250 km from Hyderabad.
The gun battle started around 6 a.m. after police came face to face with the guerrillas during a combing operation in the forests.
The police launched the operation following information about the presence of Maoists in the region.
As other Maoists escaped deep in the forests, the police continued the combing operation.
Malla Reddy, deputy Inspector General of Warangal police, said a 303 rifle and a carbine were recovered from them.
The Maoists killed in the encounter were yet to be identified.
This is the first major encounter since formattion of the separate Telangana state in June last year.
Telangana, a former stronghold of left wing extremists, had not witnessed any major guerrilla activity for the last few years.
The Maoists destroyed a JCB earth mover in Mallampalli village in the same district.
The Communist Party of India (Maoist) had last month pasted wall posters in Chityal mandal, warning Telangana legislative assembly speaker Madhusudhana Chary.