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Palladium Cinema, once a popular hangout for movie buffs which fell victim to militancy, will be developed as a heritage musuem.
Located in the historic Lal Chowk here, the cinema theatre was closed down after eruption of militancy in 1989.
Subsequently, it was gutted in a fire in 1990, leaving the structure in the ruins.
A meeting chaired by Divisional Commissioner, Kashmir, Baseer Ahmad Khan here today was informed that "Palladium cinema site at Lal Chowk will be developed as a heritage museum soon", an official spokesman said.
The information was provided while Khan was reviewing the progress of various developmental activities being carried out by the Srinagar Development Authority (SDA).
The ruined structure had remained a major security installation before the forces vacated it in April 2012.
Earlier efforts to restore the building have been hampered because of a court dispute over land holding rights between the family owning it and the state government.
The family had migrated out of the valley after closure of the cinema hall and had not extended the lease of the prized land but after it was taken over by the SDA, it moved the court.
However, the family has now expressed its willingness for an out-of-court settlement with the SDA.