A masive gun battle erupted in Kabul this morning as suicide squads of Taliban stormed a series of government buildings close to the presidential palace. The Taliban claimed 20 suicide bombers had infiltrated the city. A Taliban spokesman said insurgents were also planning to attack the Ministry of Mines and the Ministry of Finance and the hotel, which are all situated in the same area of the city. Zabihullah Mujahid, a spokesman for the Taliban said 20 of the group's fighters,including suicide bombers, had occupied several government buildings and were clashing with Afghan security forces. "It is our work, the targets are the (presidential) palace, the finance, justice and mines ministries, and the central bank," he said. "Twenty of our suicide bombers have entered the area and fighting is ongoing," he added. He said one militant had detonated a suicide vest at the entrance to the presidential palace complex. Reporters at the scene said gunmen were shooting from a fourth storey window. Police sealed off a large area in the center of Kabul as the clash of machine-gun fire echoed through the mountain-rimmed city. One group of militants entered a supermarket after throwing grenades inside to frighten shoppers, Interior Ministry spokesman Zemari Bashary said. ''The area is surrounded by security forces,'' he said. ''A gunbattle is going on.'' Mohib Safi, deputy governor of the central bank, said bank employees heard a strong explosion followed by gunfire. He said employees were safely inside and that no militants had entered the building. Another huge explosion was heard less than two hours later at an intersection between the Foreign Ministry and the Education Ministry. Afghan security forces surrounded the area, and fighting between the two sides was continuing. Ambulances transported the wounded from the scene. NATO said international forces were working with Afghan troops to secure the area. Witnesses reported hearing a series of explosions and gunfire in a busy area of Kabul near the presidential palace, witnesses said. There was no immediate information about any casualties. The attacks came a day after the government said President Hamid Karzai was to announce a new plan aimed at forging peace with the Taliban and other militants fighting to topple his administration. The plan would be announced ahead of a key international conference on Afghanistan's security and development due to be held in London on January 28, Karzai's spokesman Waheed Omar said. "The scheme we are proposing this time is taking all those into consideration and learning from the past and trying to come up with a proper programme where we have all the necessary ground to allow those joining the programme to have a peaceful life," he said.