Srinagar, Sep 28 : Two terrorists killed in a gunfight with the security forces in South Kashmir's Kulgam district had refused to surrender, officials said on Wednesday. The encounter took place on Tuesday in the Ahwatoo area. "On receipt of specific human information from JKP (Kulgam) regarding presence of terrorists in Avhotu village of Kulgam District, a joint cordon and search operation was launched in the area by Indian Army along with JKP and CRPF at about 3.20 p.m. on 27 Sep 22," the Army said in a statement. The Army established a quick initial cordon around the suspected cluster of houses in the village which was subsequently strengthened by additional troops. "On confirmation of the presence of terrorists in the suspected house, priority was given for evacuation of civilians from the cordon to a safe location. Thereafter, Army unit attempted to induce surrender of the hiding terrorists by making repeated surrender calls, however to no avail," the Army said. During the search of the target house, terrorists resorted to indiscriminate firing in an attempt to break the cordon. "Own troops retaliated with effective fire, thereby foiling their escape attempt and neutralising one of the terrorists. In the ensuing firefight, one soldier sustained splinter/ricochet injury in foot. The soldier was evacuated to 439 Field Hospital, Awantipura. "Meanwhile, due to the indiscriminate fire by the terrorist, the Gas Godown in vicinity of the target house caught fire, leading to multiple explosions. Considering the safety of civilian life, efforts by the Army and JKP (Jammu and Kashmir Police) were pressed in towards dousing the fire by the use of water bowsers and foam sprinklers, simultaneously maintaining an impregnable cordon. LPG cylinder fire was doused by the Fire Fighting team security forces, thus preventing loss to the property of neighbouring houses," the statement said. The Army said later contact was re-established and second terrorist was also neutralised owing to accurate fire of the troops. On search of the encounter site, two AK series rifles, grenades and other warlike stores were recovered. "The JKP identified the neutralised terrorists as Md Shafi Ganie, resident of Welsbatapura, Kulgam and Mohammad Asif Wani alias Yawar resident of Takiya, Kulgam. Both the terrorists were members of Jaish-e-Mohammad terrorist group," the Army said. /IANS