During the meeting in Parliament House complex, she briefed Modi on the latest situation in Kashmir Valley which has been witnessing trouble since July, sources said.
Mehbooba, who is heading a PDP-BJP coalition government, underlined the need for reaching out to the people of the state and in this regard urged the Prime Minister to initiate state-specific CBMs, they said. The Prime Minister was supportive of her views, they added.
"I discussed (with PM) how we can apply balm to the wounds of the people of Kashmir and talked about keeping a peaceful environment in the valley," she said.
"The situation (in Kashmir) is improving gradually. I am happy that the students sat for the exams despite all this hardship. I congratulate the parents for this," she added.
She said people of the country should visit Kashmir and allow the people to Kashmir to welcome them and provide them their services.
Kashmir has been witnessing unrest since the killing of Hizbul Mujahideen militant Burhan Wani in an encounter on July 8.
To questions on demonetisation, Mehbooba hailed the decision, saying it will benefit the country.
"I congratulated the Prime Minister for the decision of demonetisation. This is not an ordinary decision," she said, adding "All those who have illegal money, fake currency have been hit by this move."
The Chief Minister said the people will face difficulties for some time. "Whenever there is any drastic decision, some kinds of inconvenience are caused for some time but I believe it will prove historic for the nation," she added.
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