Two AK rifles and some ammunition were recovered from the slain militants whose identity is being ascertained, the sources said.
Salahuddin said an armed struggle and a dialogue process could go together.
3 terrorists -- two from the Lashkar-e-Tayiba and one from the Hizbul Mujahideen -- were arrested over the past three days.
The video showed the terrorists enjoying snowfall and brandishing AK 47 assault rifles while treading a snow-clad hillock after heavy snowfall on January 6.
Pakistan has launched new terror outfits staffed by cadres of the dreaded Lashkar-e-Tayiba and Jaish-e-Mohammed under 'local names' to mislead the world that it has nothing to do with the terrorism prevalent in Jammu and Kashmir, Director General of Police (DGP) of the union territory Dilbag Singh said.
The Hizbul Mujahideen chief said he could not back their peace moves or any future Kashmir solution unless hardline Hurriyat leader Syed Ali Shah Geelani was taken on board, local media reported.
A vehicle-borne IED blast was averted as security forces detected a car laden with 45 kg of explosives in Pulwama.
However, the attendance of devotees was thin as the people from adjoining localities only were not able to reach the grand mosque due to non-availability of public transport in view of the strike.
It is learnt that the sympathisers of the Taliban who are targeting India are now active.
"Four policemen, three Central Reserve Police Force personnel and four civilians were injured in the terror attack."
Security forces launched a cordon and search operation in Redbug area of Budgam on Tuesday evening.
Security forces on Wednesday arrested one of the top commanders of terror outfit Hizbul Mujahideen along with two other suspects from Bandipora district.
Militants also set off two powerful grenade explosions in Srinagar wounding 14.
One of the terrorists was a lecturer by profession who had abdicated the government service and had joined the outfit.
Zahoor, a resident of Pulwama district in South Kashmir, was reported absconding since July 5 night by the army unit located in Gantmulla area of Baramulla.
Two soldiers were injured in the initial firing, an army official said, adding that the cordon has been strengthened.
The security forces launched a cordon and search operation in the Pinjora area of the district in South Kashmir this morning after receiving information about the presence of terrorists there, a police official said.
The spokesman, however, said, it was "imperative that the Government of India moves forward for talks with sincerity."
In an interview to Kashmir daily The Rehmat the outfit's spokesman Junaid-ul-Islam claimed the Hizb was not carrying out suicide attacks.
Life came to full circle for the 35-year-old bespectacled chief of the banned Hizbul Mujahideen terror outfit as he was gunned down at the same village from where he had scripted his journey in militancy in 2012.
A local 'hybrid terrorist' of proscribed outfit Lashkar-e-Taiba (LeT) was arrested for the attack during a search and cordon operation, police said.
He said the search operation turned into an encounter after the hiding terrorists fired at the security forces.
The Opposition claimed that Singh "cannot be a standalone carrier", with the Congress's leader in LoK Sabha, Adhir Ranjan Chowdhury, saying the question will now arise who were the real culprits behind the last year Pulwama attack. Taking a swipe at the Rashtriya Swayamsevak Sangh, the Bharatiya Janata Party's ideological mentor, Chowdhury said had police officer Davinder Singh been "Davinder Khan", the reaction of the "troll regiment of the RSS" would have been different.
In the gun battle, one terrorist identified as Sadam Hussain Mir, a resident of Chatripora Shopian, belonging to Hizbul Mujahideen, was killed, the official said.
Bodies of three men, including that of an alleged militant, were found on Monday about 30 kms from here in Baramulla district, triggering protests by locals even though police said the deaths appeared to be a result of fight between two militant groups.
Officials said on condition of anonymity that the situation could be slipping out of their hands.
The J&K police's 81 medals are the maximum awarded to any police force this year, followed by the CRPF's 55.
The video shows Jutt, carrying an automatic rifle, exchanging hugs with some Hibzul Mujahideen terrorists, although police officials refused to comment on the video saying they were verifying its veracity.
Security agencies on Tuesday identified the terrorists they believed were behind the civilian killings in Srinagar last week, and the attackers included their 25-year-old kingpin Basit Ahmed Dar, a resident of Kulgam in South Kashmir, officials said.
A Hizbul Mujahideen terrorist, who was seen in a video taken during the funeral of outfit commander Sabzar Bhat last week, has surrendered before authorities in Kashmir, the police said on Wednesday.
India has been maintaining that Pakistan extends regular support to terror groups like Lashkar-e-Taiba, Jaish-e-Mohammad and Hizbul Mujahideen, whose prime target is India, and has urged FATF to take action against Islamabad.
Zeenat, considered as an improvised explosive device (IED) expert, was earlier associated with another terror group Hizbul Mujahideen.
One of the slain terrorists was pursuing Bachelor of Physiotherapy.
The officials said the case was re-registered by the NIA recently and it has initiated investigations into it.
The veteran actor demanded a probe into Guru's hanging. She followed it up with another post to ask why no one took Guru's allegations that he was tortured by the now dismissed J-K DSP Davinder Singh seriously.
Constable Mudasir Ahmad became the second policeman to die in the violent clashes that erupted in the Valley following killing of Hizbul Mujahideen commander Burhan Wani.
A fresh batch of 6,162 pilgrims, including 1,360 women and 222 Sadhus on Monday left the winter capital for the twin base camps of Baltal and Pahalgam in Kashmir, officials said.
Authorities had allowed regular prayers inside the mosque on Wednesday for the first time after it was sealed on August 5. After eruption of militancy in the valley, this was for the first time in recent memory that no congregational prayers were offered at the mosque for 19 consecutive Fridays because of curbs by authorities.
The army had to had to aim at the crowd when jawans claimed to have been fired upon from the other side.
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