Srinagar, Jul 5 (IANS): Jammu and Kashmir has been allotted 130 million tonne of coal block in Odisha which would be used to build a 1,000 MW thermal power project to end electricity woes of the state, Chief Minister Omar Abdullah said Friday.

"Jammu and Kashmir has been allotted 130 million tonne of open cast coal mine in Odisha. This will enable us to set up a 1,000 MW thermal power project," the chief minister posted on micro blogging site twitter.

He, however, said that it has not yet been decided whether the thermal power project would be in Odisha or within Jammu and Kashmir.

"We now have to decide whether to locate the power house at the pit head or within the state but should have additional 1,000 MW in three years," Omar tweeted.

During his recent visit to the state, Prime Minister Manmohan Singh had laid the foundation stone of an 850 MW hydro electric power project on the Chenab river in Kishtwar district.

The prime minister also announced an additional daily allocation of 150 MW of electricity to the state to help tide over the power crisis.

Jammu and Kashmir has been spending more than Rs.3,000 crore annually on buying electricity from outside the state, while its annual revenue collection on account of electricity supplied to consumers has been just over Rs.1,000 crore.