A Maoist camp has been busted in the Barimunda Forests along the Ganjam-Kandhamal border following an exchange of fire between the police and the rebels.
Some arms and ammunition have also been seized from the rebel hideout.
"A policeman sustained a minor injury in the encounter, while the condition of the ultras was not known as they fled from the spot under the Ganjam district's Tarsingi police station limit," said Gajapati District's Superintendent of Police Satyajit Nayak, who led the combing operation in the area.
The injured policeman has been discharged after being treated at Bhanjanagar.
"We suspect that a temporary camp of the rebels was functioning in the area. Around four people were present at the time of exchange of fire in the morning hour," Nayak said.
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A self loading rifle, around 30 rounds of ammunition and two magazines were seized from the spot.
"Besides these, items like rice, medicines, dress materials and Maoist literature were also recovered from the spot," added the Nayak.
It was the first major Naxal-related incident in the Ganjam District after the arrest of Maoist leader Sabyasachi Panda from Berhampur on July 17.
The combing operation in the area was conducted jointly by the district volunteer forces and police personnel.