She invoked former Prime Minister Atal Bihari Vajpayee's policy on Kashmir, and said the thread should be picked up from where he had left off -- an apparent suggestion for talks with separatists.
"How long can you have confrontation... There is no option but to talk," Mehbooba said. "However, an atmposphere needs to be created for a dialogue," she said.
During the 20-minute meeting at Modi's residence here, Mehbooba briefed the prime minister on the situation, particularly in the increase in violence since the April 9 by-poll for the Srinagar Lok Sabha constituency.
Referring to the increase in stone-pelting incidents, she said there were some young people who were "disillusioned" while some were being "instigated", including through the use of social media sites such as Facebook and Whatsapp.
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The path of dialogue undertaken by Vajpayee is the only way out to resolve the Kashmir crisis, she said.
She also raised the Indus water treaty issue, saying it was causing a huge loss to the state.
Mehbooba said the prime minister assured her that efforts would be made to see how the state would be compensated for this.