"(The) situation is not anywhere close to Kargil," Bikram Singh told reporters.
He said, "It is nothing like that, it was an infiltration by 30 to 40 terrorists. They have been stopped."
Speaking about the Indian Army's position, he said, "We are dominating from all sides. They (intruders) are holed up there. We will take them out....It's a matter of time. All such operations take time."
The Army Chief assured that no village has been occupied by the terrorists and some of them were also mutilated by the Indian troopers.
According to reports, the Army's encounter has reached its final stages.
More than 1300 Gurkha Rifles jawans have restricted the terrorists to an area of around one square kilometre.
Two militants were killed in the gunbattle on Friday, reports said.
Tension along the LoC in Jammu and Kashmir continued for 11 days now despite talks between Indian Prime Minister Manmohan Singh and his Pakistani couterpart Nawaz Sharif in New York this week.
The militant had attacked the forces with grenades and automatic rifles, said reports.
Reports said Pakistan tried to push at least 30 to 40 terrorists inside India through the Keran sector, which is located about 100 km from Srinagar.
Indian Army said the infiltrators might be backed by special troops.
"There were some special troops, the training shows it. It is different from earlier attempts," Lt-General Gurmeet Singh of the Army's 15 Corps was quoted in media saying.
The Indian Army has been engaged in fending off the militants for over ten days in what is being called the biggest border infiltration bid in recent years, backed by the Pakistan military.
Additional forces, helicopters and drones have been pressed into action by the Indian Army that said it has killed around 15 of the intruders since making first contact on Sept 24.
At least five Indian soldiers were wounded in the fighting that broke out earlier.
With the fresh outbreak of fighting, the Indian Army said the intruders have so far exhibited "an unusual resolve" to stand their ground and not, as is the norm, scurry back across the LoC after being intercepted.
However , the Army earlier denied reports that three to four Indian posts along the LoC had been "occupied" by Pakistan for the first time since the 1999 Kargil war.
--IBNS (Posted on 04-10-2013)