The Steel Authority of India Ltd would set up a new steel processing unit in Pulwama district of Jammu and Kashmir. The state run company would invest Rs 150 cr as per its initial plans. It is disclosed by Union Steel Minister Ram Vilas Paswan on Monday. He was here in Sri nagar to lay the foundation stone of one lakh-tonne per annum unit in Lassipora Industrial estate near Sri Nagar.

The minister also asked the concerned staff of SAIL to speed up work at the plant. The steel plant is being set up to produce TMT bars and galvanized corrugated sheets. The government wants it to be operational by January 26, 2010. The proposed unit is being set up on an area of 25 acres. It will provide direct and indirect employment to nearly 5,000 people. The minister has directed to prefer local residents in the recruitment. Paswan also thanked the state government for its assistance in acquiring the required land for the project.

The chairman of SAIL, S K Roongta said that the company would set up 12 steel plants in different regions of country as the demand for steel is increasing day by day.