They also discussed security arrangements for upcoming annual Amarnath pilgrimage in the state at the 2-hour meeting at Nehru Guest House here.
Issues relating to law and order and security were discussed in detail at the high-level meeting, an official spokesman said.
Highly placed sources said Chidambaram impressed upon security agencies to reduce unnecessary presence of security force bunkers wherever possible without compromising on security issues.
They said the controversial Armed Forces Special Powers Act (AFSPA) did not come up for discussion.
The Home Minister and Omar reviewed implementation of various schemes like employment-oriented Himayat and Udaan projects, the sources said.
The return and rehabilitation of migrants to the Valley and protection of migrant properties in Kashmir were also discussed in detail, they said.
Union Minister of State for Home Jatinder Singh, Deputy Chief Minister Tara Chand, JK Minister of State for Home Nasir Aslam Wani, Chief Secretary Madhav Lal, DGP Kuldeep Khoda, Principal Secretary to Chief Minister B B Vyas, Principal Secretary Home B R Sharma and senior officers of central and state governments attended the meeting.