Sayeed, 79, breathed his last at AIIMS this morning after remaining on ventilator for the past few days.
A Congressman till 1987, Sayeed left the party and joined the ranks of V P Singh to become the only Muslim Home Minister of India when he was inducted into the cabinet of the National Front government in 1989.
Sayeed, who was Chief Minister from 2002 to 2005 in coalition with Congress, played a leading part in PDP and BJP coming together to form a coalition that helped the saffron party share power for the first time in the state.
"Mufti Sahab provided a healing touch to J&K through his leadership. What stood out about Mufti Sahab was his statesmanship. In his long political journey he won many admirers across the political spectrum," said Modi.
Home Minister Rajnath Singh was deputed by the prime minister to represent the Centre in the funeral.
Draped in the national tricolour and the red-and-white flag of the state, the coffin was later taken from his official residence in Srinagar to the ancestral graveyard in Anantnag.
Former chief ministers of the state--Omar Abdullah and
Ghulam Nabi Azad--were among those who attended the funeral prayers which were led by Sayeed's trusted aide, Education Minister Naeem Akhtar.
The two opposition leaders and Sayeed's son Mufti Tassaduq were among those who carried the coffin on their shoulders for the last rites.
Rajnath Singh and state Governor N N Vohra were among those who visited the bereaved family at its Gupkar residence to offer condolences.
The smooth succession of power was possible with coalition partner BJP giving clear signals that it had no objection to Mufti's daughter taking over the reins of power, contrary to earlier speculation that the saffron party may have some reservations.
It was not clear when she would be sworn in. "It will follow in due course of time as we are still in the process of performing last rites of our beloved leader," a PDP leader said.
The Central Government also announced that the national flag will be flown half-mast today across the country as a mark of respect to the departed leader.
The Cabinet adopted a resolution was passed which said in the passing away of Sayeed, the nation has lost an eminent and distinguished leader, a true nationalist and a stalwart from Jammu and Kashmir.
The Cabinet also extended its heartfelt condolences to the bereaved family.
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