It's under "bulk edit". Run a filter, use Options -> Bulk edit (you may need to check your global permissions to make sure you have the rights to use bulk operations), and "delete" will be one of the four options you have.
I'm not sure what you mean by "want to start from 1 index", but I'm guessing your aim is to remove all the issues in a project and reset the project key counter? If so, then you can only do this in the UI by deleting the whole project (which, of course, also deletes all the issues in it, saving you a bulk edit). Your other option is to reset the counter in SQL, but if you do it that way, it is critical that you have Jira shut down when you change it.
I repeat, you can't do a "reset" in the UI.
Your SQL looks right to me (although, I cannot remember if the pcounter is "next number" or "current number". I think it should be 1, but it might be 0).
Just remember that it is *mandatory* to have Jira offline when you run this SQL. It caches the counter. (I'd also recommend backups and so-on, but this is actually a moderately simple and safe change)
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