Maoists torched two trucks and fired at a police squad in Jharkhand's Latehar district before fleeing the spot.
Police officer Heera Lal Chauhan said that the police squad rushed to the spot after getting information about rebels attacking a coal field in Latehar district.
The ultras left behind a pamphlet that sought money from the contractor.
"The police squad immediately rushed to the spot after getting information. We saw that few people were torching two trucks. They fired 15 to 16 rounds of bullets at the police. The police retaliated by firing five to six rounds of bullets. After that Maoists ran away, leaving a pamphlet," said Chauhan.
The police have cordoned off the area and are conducting raids to nab the culprits.
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"It seems to be a case of levy. They were trying to take ransom from contractors by threatening them. Police have begun raids at various places and cordoned off the area," added Chauhan.
Union Home Minister Rajnath Singh has stressed on the need for better coordination between the Central and state governments to meet the challenge posed by Maoists to the security forces.
Describing the Naxal problem as the gravest challenge facing India, he had earlier asked all states which are grappling with the menace to appoint as District Magistrates and Superintendents of Police such officers who have the 'zeal' to fight the rebels.