While Pakistan and rest of India benefited from the Indus Water Treaty, "the state of Jammu and Kashmir has been put to disadvantageous position," Omar Abdullah said at a high level meeting of officials from Union Power Ministry and state Power development department.
Union Minister of State for Power Piyush Goyal also attended the meeting.
He said due to this treaty, Jammu and Kashmir cannot utilize its water resources to its will for generating hydro power, irrigating agriculture fields and providing drinking water to the people.
Omar mentioned the hurdle caused by the Indus Water Treaty in launch of huge water supply project for Greater Jammu to utilise Chenab water to meet the requirements of the people for next 25 years.
He said the issue of return of power projects by the NHPC to the state was of significant importance and critically essential for the energy supply and economic development in Jammu and Kashmir.
Omar said that quality and affordable power to the consumers in the state has remained his government's priority in the last about six years.
He said while sufficient measures were taken to upgrade the infrastructure and improve power distribution and transmission system, the focus remained on indigenous power generation.
Omar said power sector is the key area to bring turn around in the economic development in the state besides making adequate energy available to the people and exporting the surplus.
"This is the sector which can transform the state from the deficit to the surplus one," he said, adding that projects of the capacity of 1500 MWs have been launched during the last about six years while projects of the capacity of over 9000 MWs are in different stages of execution.
The Chief Minister expressed the hope that the various power projects under execution in the state would be completed in the fixed time frame with the support of the Centre.