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Nilnag is a picturesque lake situated at a distance of 4 km away from Yusmarg. The lake is located at the height of 2180 meters above the sea level. To reach the lake, tourists need to cover a rough trekking path through dense forest. The water of the lake are crystal clear blue color, after which it has got the name ‘Neel’ (blue). It serves as an ideal picnic spots for both tourists and local alike.