Army officer Major General Ashok Narula said the fighting ended Wednesday near saffron-rich Pampore town on the outskirts of the disputed region's main city of Srinagar.

The rebels had taken positions inside a building in a sprawling government compound. The multistory building was extensively damaged.

A soldier and a police official were injured in the initial fighting on Monday.

Kashmir is experiencing its largest protests against Indian rule in recent years, sparked by the killing in July of a popular rebel commander by Indian soldiers.

The protests, and a sweeping military crackdown, have nearly paralysed daily life.