Security forces and Maoists Monday afternoon exchanged gun fire at Hansapur north of Sandhikarkha where Maoists staged a daring attack overnight killing at least 59 security personnel and injured many others, local security forces in Pokhara said.

Rebels were attempting to retreat to the dense forests of the neighbouring districts of Pyuthan and Baglung from district headquarters of Argakanchi where they struck Sunday night. Heavy army and police reinforcements have been dropped to Hansapur by helicopter Monday, security forces in Pokhara said.

Fleeing rebels took hostage deputy chief district officer Baburam Khatiwada and two policemen Rameshwor Khadka and Dambar Tamang in Sandhikarkha, the Defence Ministry said. Rebels also shot dead a civilian in Argakanchi.

The Defence Ministry said rebels killed 57 policemen and soldiers in the attack on Sandhikarkha while police said 59 security security personnel were killed and many others were injured. Final casualty figures could be higher.

Maoists shot a helicopter ferrying security personnel from Pokhara to Sandkiharkha Monday; the chopper made an emergency landing at Tamagash in neighbouring Gulmi district and took off after minor repairs, sources close to the Home Ministry said.

The rebel attack on Argakanchi is the biggest on army and police installations after rebels killed 56 soldiers and 76 policemen in Mangalsen and Saphebagar in Achham on February 16 and comes 24 hours after an assault in Sindhulil where 49 policemen were killed and 21 others were injured.

Insurgents bombed and torched the district administration office, the residence of the chief district officer, the district police office, district forest office, the district court, the district development committee office and other government buildings in Sanphebagar, the Defence Ministry said Monday.

The rebels also destroyed project offices, a telephone repeater station and destroyed government and other vehicles, the Ministry said.

The attack on Argakanchi comes on the eve of a leadership change at Royal Nepal Headquarters where Gen. Pyar Jung Thapa took over as Chief of the Army Staff from Gen. Prajwalla SJB Rana Monday.

The Ministry confirmed heavy rebel casualties in the shoot-out without releasing rebel casualty figures.

The army shot dead nine rebels in Dang Sunday during a search operation, the Ministry said. nepalnews.com br Sept.9