"If Sikh youths want to return, having given up militancy, giving up violence, given up the demands of Khalistan. We will certainly facilitate the return of Sikh youths," he said.
Chidambaram's remarks comes two days after Punjab Chief Minister Parkash Singh Badal slammed the Centre for leaving Sikh youths out of the ambit of its proposed move to facilitate the return of Kashmiri militants who have crossed over to Pakistan-occupied Kashmir (PoK) if they shun the path of violence.
The Home Minister said, "If the government of Punjab wishes to draw up a scheme. I will be very happy to consider that."
He was speaking after laying the foundation stone of country's first integrated check post, which will provide support facilities to ensure smooth movement of people, goods and transport across the Indo-Pak border.
"When the country is one, what is the harm in giving general amnesty to Sikh youths who want to shun violence and join the mainstream," Badal had said.
Jammu and Kashmir Chief Minister Omar Abdullah had raised the issue of surrender policy for Kashmir militants during the conference on Internal Security in Delhi earlier this month.
Noting that trade and commerce are set to govern the 21st century, Chidambaram said the ICP at Attari which is the first of India's 13 Integrated Check Posts (ICP) is aimed at overcoming infrastructural bottlenecks at various entry and exit points on the land borders of the country.
"The 21st century will be governed by trade and commerce with people travelling from one part of the world to another, India is not an exception," he said.
"Recognizing that we must encourage trade and commerce with all our neighbours, recognizing that people from India will visit neighbouring countries and recognizing that people from neighbouring countries will visit India, we have designed the scheme of constructing the ICPs," he said.
Pointing out that the various links between people on either side of the border could not be lost sight of, he said, "Whatever our other problems are, we cannot ignore these links like family links, links among friends, religious links, commercial and trade links."
An amount of Rs 150 Crore will be spent over constructing the ICP at Attari, which will come up within 14 months, he said, adding that he will not accept delay of even a day in the completion of the project.
Meanwhile, recognising the problems faced by the people of the border areas, Chidambaram said the Centre would do its best to find ways by which their lives can be a "little better and a little more comfortable".
"I know the problems of people living in border areas. In fact, the most unsettled and uncertain life is that of people living in the border areas. That is why we have a Border Area Development Programme (BADP)," Chidambaram said.
However, the Union Minister admitted that the amount of money available under the programme was not sufficient.
"We do not have too much money for the programme. I wish we had more money. The Central Government spends Rs 635 crore this year on the BADP. But I hope I will get a little more money because it is our intention to make life a little more liveable and comfortable in the border areas," he said.
Referring to Chief Minister Parkash Singh Badal raising the issue of problems faced by border residents during previous UPA government, Chidambaram said he has promised to the Chief Minister to look into each one of the problems and try his best to solve them.
Making a mention of a letter written by Badal to him drawing his attention to the hardships of people whose lands will be taken over for laying roads, the Union Minister said he had sought all details of people likely to be affected by such projects from the Chief Minister.
Pointing out that it was for the first time that a high level official in his ministry drove down the entire 553 km of the border in Punjab and spent several days to identify the problems in each Border Out Post (BOP), he promised to work out a plan to address each one of them including fencing and lighting to make the borders extermely secure.
He also congratulated the state's farmers for a bountiful wheat crop despite a drought last year and hoped they would do even better this year.