The Z-Morh tunnel, which is being constructed by private company APCO Infratech and where seven staffers were killed recently in a militant attack, is a strategic project on the Srinagar- Sonamarg highway. This attack marks the first time a major infrastructure project in Jammu and Kashmir has been targeted by militants. The 6.4-km long Z-Morh tunnel is crucial because it would give all-weather connectivity to Sonamarg and eventually Ladakh. The name ‘Z-Morh’ refers to the Z-shaped road section near the construction site. The area where the tunnel is being constructed sits at an altitude of over 8,500 feet and is prone to snow avalanches, making the road to Sonamarg impassable during a major part of the winter. The Z-Morh tunnel is also important for the success of the Zojila tunnel project.

APCO Infratech has reported strong financial performance in recent years. In FY 2023 its operating income was Rs.50.69 billion with a profit after tax (PAT) of Rs.4.18 billion.