It is located in the Kalakote town of Rajouri district in the Indian union territory of Jammu and Kashmir.

[2] To utilize the coal resources, Power Development Department of government of union territory (state then) of Jammu and Kashmir in collaboration with Energoinvest decided to open a power plant in Sair (now Kalakote town) area of Kalakote tehsil.

With the starting of power plant in 1964, to handle the influx, many shops, hotels, theatres and colonies were settled up.

Even after being decommissioned, the government is still spending 1.1 million rupees every year for salaries of around 250 workers of plant.

[5] After the closure, there have been reports of theft of iron and machinery parts from plant several times.