Before independence, Kalakote was a small village with coal mines. In the beginning of the 1950s, a thermal power station was established at Kalakote to utilize the local coal resources. Colonies like Mine Colony and Thermal Colony were established for residence of power plant workers. Shops and hotels were constructed to handle the influx of mine workers. After the commissioning of this project, it was found that the coal available at site was not suitable for the project due to which the project is closed at present. However, coal remains the primary resource of the Tehsil, which is presently being exported outside.

On 27th August 2010, Kalakote was officially recognized as a Notified Area through the issuance of SRO 315. This administrative status acknowledges Kalakote's significance and likely provides a framework for governance and local administration.Documenting these historical and administrative aspects provides a comprehensive overview of Kalakote's journey from a small village with coal mines to its present status as a Notified Area with a rich industrial history.