ET reported that Steel Authority of India is setting up INR 150 crore steel processing unit in Kashmir and it is going to be a major investment by local standards. It will consume billets to produce TMT bars and get in galvanized sheets for corrugation and cutting to cater local market.

A SAIL official said that "It could be a small by SAIL standards but nobody has done such a huge investment in Kashmir. Profit is not the motive but the investment is as good as SAIL’s corporate social responsibility. The unit that is sprawling over 200 kanals would manufacture 40,000 tonnes of TMT bars and process 60,000 tonnes of GC sheet a year."

Another senior SAIL official said that "No, we have a quality restriction and for that we would be getting our own billets from iron ore sites. It is an integrated facility that we would be using and not the sub standard scrap."

Estimates have it that J&K consumes over 300,000 tonnes of rebars besides around 60,000 tonnes of CG sheets for roofing. SAIL controls over one third of the total market in TMT and shares the CG sheet with TATA Steel. Locally manufactured TMT bars dominate the local market. Almost half of the supply finds its use in various central and state power, road, bridges and railway projects, besides state government run Project Construction Corporation.