Police busted a Maoist camp during a search operation in the Sunki forest under the Pottangi police station in the district on Sunday.
A gun battle is underway between the police and the Red rebels till filing of the report.
A combing operation was launched by the personnel of Special Operations Group (SOG) and District Voluntary Force after receiving reliable inputs of the presence of as many as 15 Maoists in the area, said sources.
Koraput district SP KB Singh though informed about the encounter with Red rebels in Sunki forest, he abstained from further disclosing the location of the encounter and other information due to security reasons.
As per available information, no loss of life or casualties from either side been reported so far. Earlier this week, the Kandhamal police had busted a Maoist camp in the district and recovered many explosives and daily use items from the camp. But the ultras had managed to escape from the spot.