Srinagar, September 22 Union minister for chemicals and fertilizers Ram Vilas Paswan and Governor N.N. Vohra laid the foundation stone of a steel-processing unit at Lassipora in Pulwama district today. The steel plant will have an annual capacity to produce 1.60 lakh tonnes of steel and will be completed by the end of next year. Production at the unit will start in 2010. Speaking on the occasion, Paswan said the steel-processing unit was coming up over 25 acres of land and would start production by January 2010. Paswan said the unit would be expanded after becoming operational. He said the unit was being set up in the valley with a view to cover backward areas under the industrialization programme. He said the initial cost of the upcoming steel unit would be enhanced from Rs 90 crore to Rs 150 crore. He said the unit would provide direct employment to 500 persons and indirect employment to 4,000. Paswan also announced that semi-skilled and unskilled work force in the unit would be engaged locally. He said the unit would have 40,000 tonnes annual capacity TMT Bar Mill, 60,000 tonnes annual capacity cut-to-cut length line for GP coil unit and 60,000 tonnes annual capacity corrugation line for GC sheets unit. Counselling the youth to be part in the industrialization process, Governor N.N. Vohra said the Central and state governments were providing incentives for the growth of industries in the state.