Sabzar Ahmad Bhat, who was killed in an encounter with the security forces in the Tral area of south Kashmir's Pulwama district, was a close associate of the slain Hizb-ul-Mujahideen commander Burhan Wani, and was named the commander of the outfit after Wani's death on July 8.
Police said hundreds of villagers tried to break the cordon by throwing rocks at security forces, resulting in clashes that left at least 10 injured.
Security forces in Indian-administered Kashmir on Saturday killed a top rebel commander in a gun battle, sparking massive protests and clashes in the region. "A man was injured in the crossfire and he was rushed to Tral Hospital, where he succumbed to the wounds", the police said in a statement.
Bhat had succeeded Burhan Wani, the popular Internet-savvy commander of Kashmir's frontline indigenous militant outfit, whose killing by security forces on July 8 a year ago had resulted in massive violence in the Kashmir Valley.
Modi's government then took steps to curtail the state's constitutional autonomy and enforced restrictions on beef and other measures seen as hostile to Muslims.
A fierce gunfight started in the village on Saturday morning and ended when the houses the militants had been using as fortified bunkers were destroyed, police said. "They also pelted stones on the moving vehicles on the busy roads and in the Chowks", he said.More news: Six die on Everest in past month
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In a separate incident, six infiltrating militants were killed in a clash with Army troops in Uri sector of the Line of Control (LoC) in Baramulla district.
Meanwhile, according to District Magistrate Anantnag strict restrictions would be in place in the territorial jurisdiction of the district tomorrow on 28 May 2017 to prevent breach of peace and loss of life in view of the prevailing law and order situation.
As unrest grows in Indian-controlled Kashmir, many analysts accuse Prime Minister Narendra Modi's government of failing to pursue a political dialogue with Kashmiri groups that have long agitated for self-determination.
Kashmir has been divided between India and Pakistan since the end of British rule in 1947.
The two countries have fought three wars - in 1948, 1965 and 1971 - since they were partitioned in 1947, two over Kashmir.
Over 30 people were injured in clashes at different places in the Valley.