Work on Zojila tunnel connecting Kargil and Drass with Kashmir would be started soon, he said adding a proposal was under active consideration to start commercial air services to Kargil.
Chidambaram was speaking here at 'Jashn-e-Kashmir', a mega project to impart training to youth of Jammu and Kashmir in the folk culture and art of the state.
The Union government would take all necessary steps to accommodate development needs of the state including Leh and Kargil districts, a spokeman of the state government quoting Chidambaram as saying.
Zanskar would also be connected with Leh and Kargil by helicopter service, the Home minister said.
He said the state's cultural diversity is rich and its nurturing among the young generation needs focused attention.
Chidambaram said Jashn-e-Kashmir project would prove a boost in this direction.
The Union Home minister, who arrived here this morning, thanked the people for the welcome accorded to him in Kargil, describing the land most beautiful and the people hospitable.
Chief Minister Omar Abdullah, in his speech, highlighted the cultural heritage of the state.
He underlined the need to make young generation aware of the rich ethos, history, amity in diversity and pluralistic characteristic prevailing in the state since ages.
The function was also attended among others by minister of State for Home Jitender Singh and Jammu and Kashmir Culture and Tourism minister Ringzine Jora.
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