The pre-dawn operation to retake Dalga in Minya province highlighted the resolve of the military-backed government to pursue Islamic militants behind a wave of violence in several parts of the country following the ouster of Mohammed Morsi in a popularly backed July 3 military coup.
Minya in particular suffered a collapse of security, with militants torching and looting courthouses, churches, local government buildings and police stations.
Dalga, some 300 kilometers south of Cairo, attracted nationwide attention because militants there threw out the local police force and took over the town after Morsi's ouster.
Supporters of the deposed president have been touting Dalga as a place where opposition to the coup is universal. The pro-government media, however, has been urging authorities to assert its authority and rid the town of "terrorists."
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Many of Dalga's minority Christians, about 20,000 of the town's 120,000 residents, have been paying militants for their protection.
Local activists Adel Shafiq in Dalga and Ezzat Ibrahim in nearby Malawi said a joint force of army and police entered Dalga before dawn today. Their arrival, they said, was followed by about 10 minutes of intense gunfire, followed by sporadic bursts of heavy shooting as government forces began house-to-house searches to arrest militants.
The officials said around 11 people were injured by birdshot or treated for tear gas inhalation during the clashes.
However, many of the town's top Islamists appear to have fled just before the start of the operation, the security officials said. They spoke on condition of anonymity because they were not authorized to speak to the media.