Security forces killed a top commander of Pakistan-based Jaish-e-Mohammed in a fierce encounter in north Kashmir early on Tuesday morning.
The number of terrorists killed in the past seven months this year is the highest in the same period over the past seven years.
An encounter with militants was continuing in Baramulla.
Chidambaram, who arrived in the north Kashmir town of Baramulla from Kargil in Ladakh region, took stock of the situation in Baramulla, Bandipora and Kupwara -- the three districts along the Line of Control (LoC) in the Valley which witnessed violent protests during the past four months.
The encounter broke out when troops confronted a group of militants trying to sneak into the valley from across the border.
The Corps Commander, who heads the army in Kashmir, was replying to a question about the possibility of the Islamic State forging an alliance with the militant outfits like Lashkar-e-Tayiba and Jaish-e-Mohammad for expanding its activities to the valley.
Areas falling under the jurisdiction of 11 police stations Srinagar were also placed under curfew.
There will be eight more phases of Panchayat polls in Jammu and Kashmir.
Speaking for the first time after the government announced an halt to anti-militancy operations in the state during the holy month of Ramzan, the prime minister said there is no alternative to peace and stability.
Guddi has not yet been traced and her husband has lodged a police complaint.
A police official said the curbs have been imposed to maintain law and order in view of the separatists call for a march to the three districts of Baramulla, Pulwama and Srinagar.
Two officers -- Lt Colonel Mukesh Jha and Major Amardeep Singh -- are among the five injured army personnel.
Heavy snowfall has blanketed Kashmir, bringing relief to the residents from dry weather. The snowfall, which began in the late afternoon on Friday, has continued in most parts of the valley, said officials, adding it is one of the heaviest snowfalls in the recent years in the plains of Kashmir.
The improvised explosive device planted by militants at Badyara Ashtangoo on Sopore-Bandipora road went off when a Central Reserve Police Force vehicle ran over it around 8 am, injuring three jawans and three civilians.
'It is a matter of concern. The number of forces on a 'naka' point is less and is normally in a remote area where they (terrorists) conceal themselves by coming along with civilians and then fire on the forces. We have faced losses and they have managed to flee a few times, but, we will soon find a response to this tactic and end this problem'
A major tragedy was on Thursday averted with the timely detection of a live grenade by police at a crowded bus stand in Bandipura district, official sources said.
Some of the BJP panches and councillors who attended the meeting with Manoj Sinha said they were not impressed with what the new lieutenant governor told them.
No injuries were reported in the incident, defence sources said.
Three militants and a woman were killed and two army jawans injured in an encounter in Baramulla district of Jammu and Kashmir, a defence spokesperson said in Srinagar Friday.
Three members of a family and a child were among the seven people killed while security forces seized huge quantities of arms and ammunition across Jammu and Kashmir during the past 24 hours, an official spokesman said on Sunday.
Two top Army commanders on Saturday said the fresh ceasefire between India and Pakistan will have no bearing on the counter-terrorism operations in Jammu and Kashmir and that the force will exercise 'maximum restraint' in the event of any violation by the neighbouring country.
'The youth have given New Delhi a chance. Now it is up to the policy-makers in Delhi to respect their political choices.'
Three militants and two civilians were killed in an encounter between a group of heavily armed terrorists and security forces in northern Kashmir's Baramulla district early on Tuesday morning.
Intense clashes had rocked Kashmir Valley in 2016 following the death of Hizbul Mujahideen commander Burhan Wani in July that year, resulting in the death of over 85 people.
Mostly of the militants belonged to Pakistan-based Lashkar-e-Tayiba and Jaish-e-Mohammad.
Qasim, a Lashkar leader and terrorist, had planned the attack on a Border Security Force convoy in Udhampur on August 5.
Normal life remained paralysed for the 37th consecutive day due to curfew, restrictions and separatist sponsored strike.
The SPO was on duty at Bandipora when the militants attacked his 30-year-old wife Shaha and 8-year old daughter Misra.
There were no casualties or injuries in the attack on a Rashtriya Rifles camp in Bandipora.
Earlier in 2010, the highest number of 156 terrorists were killed between January and July that year.
Curfew remained in force in the five districts of Anantnag, Kulgam, Pulwama, Shopian and Baramulla.
The poll process for the second tier of the Panchayati Raj system will be completed by November 5, he said.
Mobs defied curfew to indulge in stone-pelting leaving 15 people, including eight security personnel, injured in the incidents.
Fresh clashes broke out between protesters and security forces in Kashmir, even as Union Home Minister Rajnath Singh is set to visit the Valley on Saturday.
Rifleman Aurangzeb, who belonged to the 44 Rashtriya Rifles, was on way back home on June 14 to celebrate Eid when terrorists abducted him.
Restrictions on assembly of four or more people were in force in rest of the Valley as a precautionary measure to maintain law and order.
The highway was closed on Saturday due to heavy snowfall and landslides.
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