SRINAGAR: A long-held belief in north Kashmir that a lignite-based thermal power plant once operated in the Rajwar–Handwara belt has been formally contradicted by the Government of India, after a parliamentary question prompted the Ministry of Power to state that it has no record of such a project ever existing.
The issue surfaced in the Rajya Sabha on December 15, 2025, when a Member of Parliament from Kashmir, Choudhary M Ramzan, who has represented the area in the erstwhile state assembly many times, sought clarity on hydropower projects operated by NHPC in Jammu and Kashmir and, crucially, asked whether a thermal power project initiated at Nichhama in Rajwar Handwara had been abandoned in 1989 due to militancy and whether the government intended to revive it. In its written reply, the Ministry of Power categorically stated that no information is available with the ministry regarding any thermal power project at Nichhama Rajwar Handwara.
The response effectively places an official question mark over a project that has lived on in public memory for decades as a symbol of interrupted industrial development in Kupwara district. While the ministry denied any record of a thermal power plant, it acknowledged that Mineral Exploration and Consultancy Limited, a Government of India enterprise, is currently carrying out lignite exploration in the Nichhama block of Kupwara. According to the ministry, this work is aimed at generating reliable geological data for the possible development of lignite deposits, not at reviving or confirming a past power project.
This distinction is significant. Government records presented to Parliament suggest that while lignite exploration has taken place and continues in phases, the idea of a formal thermal power plant does not feature in the Ministry of Power’s documentation. This contrasts sharply with local accounts that trace industrial activity in Nichhama back to the early 1980s, when a lignite facility was set up in the area and subsequently shut down in 1989 amid political instability.
Historical records within the geology and mining sector indicate that detailed lignite exploration in Nichhama, Hangnikote and adjoining areas began decades ago. By the late 1980s, geological investigations had revised estimated lignite reserves upward from about 7.2 million tonnes to roughly 9 million tonnes. These deposits were considered suitable for supporting a small thermal power plant of around 20 MW. However, the exploration programme was suspended in December 1989 due to the prevailing security situation, and the proposed industrial use of the lignite never progressed beyond preliminary stages.
The area’s mineral potential extends beyond lignite. Kupwara district also hosts substantial marble reserves, estimated at around 8 lakh metric tonnes in pockets such as Awoora and Zirhama, which officials have repeatedly cited as capable of reviving local industry and generating employment if developed systematically.
Local narratives describe a lignite facility spread over nearly 36 kilometres of land, employing around 72 workers at its peak, with monthly wages ranging between Rs 560 and Rs 900 at the time. After the sudden closure in 1989, these workers were left without alternative livelihoods, and associated infrastructure, including machinery, compressors and worker housing, fell into disuse or was destroyed. Over time, the land was absorbed into agricultural use, while the mineral wealth beneath remained largely untapped.
In recent years, district and Union Territory-level authorities have again approached central exploration agencies to resume geological investigations in Nichhama and nearby areas. The stated objective has been to complete scientific assessment of lignite reserves and, if viable, place established mineral blocks under e-auction in accordance with the Mines and Minerals (Development and Regulation) Act, 1957, thereby opening the door to private or public sector investment.
Yet, the parliamentary reply underscores a crucial institutional gap. From the perspective of the Ministry of Power, there is no abandoned thermal project to revive, only ongoing mineral exploration under the purview of mining and geology agencies. The implication is that what survives in Kashmir’s collective memory as a stalled power plant may never have crossed the threshold into a centrally recognised power generation project.
