The encounter, the third between security forces and Maoists in the last fortnight here, saw heavy exchange of fire between the two sides and the forces suspect some causalities on the Naxals side.
No causalities have been reported on the side of security forces, security sources said.
The encounter took place around 7:30 AM in the Lehri forests of the district which is also the entrance to the Abujhmad area in Chhattisgarh, a Naxal stronghold.
The CRPF, which has deployed 6,000 personnel in the district for anti-Naxal operations, has rushed reinforcements to the area even as senior officials are monitoring the situation, the sources said.
The encounter comes during the People's Liberation Guerrilla Army (PLGA) week being observed by the Naxals. The Union Home Ministry has asked the security forces to remain vigilant during this period.