A Naxal was killed and two others were injured in an exchange of firing with security personnel in Bijapur's Basugada village.
Two security personnel were also injured in the incident.
The incident took place when a group of 15-20 Naxals attacked the security personnel on Friday at around 11: 30 am in the weekly market organised in the area.
As per Bijapur Superintendent of Police, Mohit Garg, they recovered a huge cache of arms and ammunition from the possession of the Naxals.
However, the injured Naxals managed to escape from the area.
The jawans have been shifted to hospital for treatment.
A search operation is underway to locate the other Naxals.
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