A cache of ammunition including a rifle bearing the Indian Ordnance Factory mark was recovered, police said.
"The district police team was conducting an anti-Naxal operation near a hill early morning when it came under fire from ultras. After an exchange of fire for 35 to 40 minutes, the Naxals fled to Andhra Pradesh through Pranhita river," Superintendent of Police Mohammed Suvez Haque told reporters.
Haque said police found a rifle bearing the Indian Ordinance Factory mark along with a magazine and ten live rounds.
"We recovered twenty SLR rounds, ten detonators, 20 pistols, utensils and Naxal literature in Telugu language from the spot," he said, adding at least 20 Maoists belonging to 'North Telangana Dalam' of Andhra Pradesh might have been involved in the encounter.
Haque said a joint manhunt with Adilabad Police from Andhra Pradesh has been launched to trace Naxals.
