SWAT/PESHAWAR - Clashes flared late Monday between security forces and militants in Swat as the Valley braced for another possible military operation. Militants attacked two police stations and a power grid in Mingora, the main town in the scenic Swat Valley, which was devastated by a nearly two-year Taliban uprising. In the wake of increasing violence and occupation of important installations by Taliban militants in Mingora and its surrounding areas in Swat, the administration imposed night curfew from 7.00 pm to 6.00 am. This announcement was made late Monday afternoon. The administration also directed all government officials, personnel of the security forces and other civilians to avoid isolated travelling. The situation took another turn when differences developed between Tehrik-i-Nifaz-i-Shariat Mohammadi (TNSM) and NWFP government over the establishment of Darul Qaza and appointment of judges. Taliban militants soon after emergence of such differences on Saturday night consolidated their positions and went for occupation of important private and public installations. At the moment, Taliban have established their influence over most of the Swat District. Taliban militants attacked a convoy of the security forces at Kota-Aboha near Barikot town in early hours of Monday. The militants established positions in a factory. One soldier was killed and two others injured in the clash. Similar attacks were reported against the security forces checkposts and camps at Baryam Bridge Matta, Madayan and Shamozai. However, reports about casualties could not be ascertained. The militants occupied all important crossings, bazaars and main private and commercial buildings all over Mingora. They also consolidated their positions in the buildings around lone police station in Mingora. Militants armed with rockets, mortars, hand-grenades and AK rifles were patrolling the bazaars and streets halting most of the trade and business activities. Militants abducted Bakht Rahim a police head constable from Islampur a village close to Saidu Sharif. They blew up a government high school in Tindodag, a town situated on the main road. The school was constructed more than 60 years back by the former Swat ruler, known as Wali-e-Swat. Two law-enforcers were killed while one got injured when Taliban militants attacked the checkposts of security forces here at different areas in Swat on Monday. Eyewitnesses and local people at Mingora informed on the telephone that a large number of dwellers including traders and businessmen had left their homes and departed for safer and secure places. A large number of traders had also packed up their businesses and were now in search of a new life in peaceful regions of the country. AFP, Reuters add: Militants in Swat Valley also shot at a centre that houses Army barracks and administrative offices, the local government official told AFP by telephone on condition of anonymity. There are heavy exchanges of fire between security forces and militants in different places of Mingora, he said. Militants blew up a police station, which police evacuated earlier. They also attacked the main police station in Mingora and a local power grid, the official added. One local resident confirmed heavy firing. Local authorities threatened Monday to unleash a fresh offensive in the one-time ski resort of Swat, where a February peace deal to enforce Islamic law in a bid to end the Taliban insurgency appeared close to unravelling. But chief military spokesman downplayed the clashes. There is firing between the police force and the police station and the militants, but media is creating a little hype. Its not exactly an attack or something very serious, Major General Athar Abbas told AFP. The peace deal appeared on the brink of collapse as the military dispatched troop reinforcements to the northwest where deadly fighting raged between soldiers and the Taliban. Witnesses said extra troops rumbled north from Peshawar and came under grenade attack at the crossing into Malakand, an area home to three million which the government put under Sharia law as part of the peace deal. More troops are coming from Peshawar and an operation may be launched either tonight or tomorrow, one military official told AFP. An AFP correspondent said he saw about a dozen military vehicles laden with guns and ammunition leave Peshawar on a road protected by military police. The Army said seven militants and three soldiers died in fighting on Monday, including an officer killed when militants ambushed an Army convoy in Swat. Authorities slapped a curfew on Mingora, the main town of Swat, for a second night running and warned people not to travel alone after dark because security forces were on alert for the threat of suicide car bombers. We will try to resolve issues through negotiation but if they refuse to abide by the peace agreement, the government will have no option but launch an operation against them, said NWFP minister Wajid Ali Khan. The military build-up sparked Taliban threats of fierce resistance and the movement claimed responsibility for the Army convoy attack Monday. We vow to carry out similar attacks in future if security forces try to enter Swat, spokesman Muslim Khan told AFP. If they launch an operation, this time we will not let the Army flee because this Army is fighting not for Islam, but for our enemies, he added. The Army accused the Taliban of committing a 'gross violation of the peace deal by patrolling in Swat. Analysts said the shaky three-month-old deal was hanging by a thread. The peace agreement is almost finished now, because the military operation has been launched and the Taliban have also renewed their attacks, political analyst Rahimullah Yousafzai told AFP. In Buner Valley, 100 km northwest of Islamabad, security forces backed by helicopter gunships and artillery attacked militants in three hamlets on Monday, residents and security officials said. Theres been heavy firing going on since morning. Its very scary. Troops are using heavy artillery and gunships, resident Nasir Khan told Reuters by telephone. A Taliban spokesman in Swat said elements in the military and the government were trying to sabotage the peace process to please the United States. They have no respect for any pact, the spokesman, Muslim Khan, said by telephone. They keep violating every agreement and if this goes on, definitely there will be no deal, no ceasefire. This is not our army, this is not our government. Theyre worse enemies of Muslims than the Americans. Theyre US stooges and now its clear that either well be martyred or well march forward. The military said it was exercising restraint to honour the peace agreement in Swat despite militants 'high-handedness and several militant attacks.