Hyderabad, Two Maoists were killed in an exchange of fire between the police and the left-wing extremists in Telangana's Bhadradri Kothagudem district on Monday, police said.

The incident took place in the forests between Vaddipeta and Pusuguppa villages in Cherla mandal near the border with Chhattisgarh.

This is the second encounter between Maoists and police in the district in less than a week. A Maoist was killed and another had escaped after an exchange of fire on September 3 near Devallagudem village of Gundala mandal.

The extremists killed in Monday's incident have not been identified.

District Superintendent of Police Sunil Dutt said the incident occurred when police were conducting combing operations in the region following information that the outlawed CPI-Maoist's Telangana State Committee was planning sensational actions against security personnel and public representatives in the wake of the bandh they called on Sunday to protest against the September 3 encounter.

"We also received further inputs that Maoist teams were moving in Cherla area to destroy public property and cause harm to public life, following which the security forces had launched combing operations," the SP said.

He said during the search operations, an exchange of fire took place between a group of armed Maoists and the district police special party. The police official said search was on in the forests for other Maoists.

The SP said one single barrel muzzle loading (SBBL) gun, one pistol and two haversacks were seized from the scene of the encounter.

Suspected Maoists had triggered an Improvised Explosive Device (IED) blast on a road at Taliperu project area in Cherla mandal to target policemen on Sunday night. No one was injured in the incident.

Maoists have stepped up their activities in the district in recent weeks to regroup in Telangana.

An exchange of fire between two sides had taken place in July in the district. According to police, some Maoists had escaped after the incident.