Jammu, Nov 13 (IANS): Jammu and Kashmir Chief Minister Omar Abdullah Wednesday said a 500-megawatt thermal power project would soon be set up with feedstock from the coal block allotted to the state by the central government to meet the state's growing electricity demands.

Omar Abdullah laid the foundation of the 48 megawatt Kalnai hydro-power project in Doda district of Jammu region Wednesday.

Addressing a public meeting after laying the foundation of the project, the chief minister said indigenous generation of hydro-energy is the right initiative to achieve economic goals and generate substantial employment and business activities for youth, particularly in far-off villages and remote areas.

"We have targeted generation of 9,000 MW of power within next seven to eight years, and the necessary edifice has already been laid to achieve this stupendous task," he said, adding that the projects for generation of 2,000 MW of hydro electricity have been cleared, and are under various stages of implementation.

He said local generation of 9,000 MW would not only enable the state to provide 24x7 electric supply to domestic consumers and industry, but its export would generate enough funds to launch wide-ranging development projects in various sectors of development.

"It would also help to generate large scale employment and give rise to various economic activities across the state," Omar Abdullah said.

He also said the power generation sector had been flagged as significantly important by the coalition government in the state.

He added that the harnessing of this sector, which was left relatively under-developed till now, promises a bright and prosperous future to the state and its people.

"Though the gestation periods of the dozens of power projects cleared by my government under various modes are longer and will not necessarily benefit the present dispensation by way of receiving vote bank support of the people, yet the only aim of my government is to seek sustained economic prosperity and financial autonomy of the state," the chief minister said.

Omar Abdullah said the power companies have been given strict directions to employ locals in project implementation works.

He said power companies have also been roped in to be partners in seven industrial training institutes in the state, so that required skill development programmes are run in these institutions and technicians and skilled youth are produced to get absorbed in upcoming power projects.

Power companies have also been directed to allot feasible works to the local contractors and transport operators so that the economic benefits accrue to various categories, the chief minister said.

The 48-MW Lower Kalnai hydro-electric project is a run-of-the-river project located on Lower Kalnai stream, a tributary of the Chenab in Thathri town of Doda district, about 200 km from Jammu.