Security is being tightened across Andhra Pradesh

The latest violence took place as a state-wide strike called by Maoist groups evoked only a partial response.

The rebels were shot in a gun battle in Sircilla town in Karimnagar district, about 150 kms from the state capital Hyderabad, police say.

The rebels withdrew from peace talks with the state government this week after several clashes with the police.

'Opened fire'

"We had information a group of ultras (Maoists) were on their way to blast the bus depot," Sircilla police commander Rajiv Ratan told the AFP news agency.

"When we tried to stop them, they opened fire."

The latest violence follows a series of clashes between police and Maoists over the last fortnight in which 15 rebels and six other people - including a policeman and two politicians - were killed.

On Monday, the rebels announced that they were breaking off peace talks with the state government.

Mixed response

The BBC's Mohammed Shafeeq in Hyderabad says that police recovered weapons and hand grenades after the latest encounter with Maoists belonging to the Communist Party of India-Marxist Leninist (CPI-ML) coalition.

There were no reports of any police casualties.

Our correspondent says that a state state-wide strike called by the rebels evoked a mixed response.

While it was observed in Maoist strongholds in the Telangana region and parts of north coastal Andhra Pradesh, there was no impact elsewhere in the state.

A group of ultras (Maoists) were on their way to blast the bus depot... When we tried to stop them, they opened fire Sircilla police commander Rajiv Ratan

There have meanwhile been reports of sporadic violence on Thursday in different parts of the state.

Police say buses have been damaged by the Maoists in Guntur, Kunrool and Mahabubnagar districts.

Until October last year, the rebels were known as the People's War Group. But at that time they announced a merger with the Maoist Communist Centre to become the CPI (Maoist).

The rebels have been fighting since 1980 for the creation of a communist state comprising tribal areas in the states of Andhra Pradesh, Maharashtra, Orissa, Bihar and Chhattisgarh.