Shah, who arrived here on a two-day visit to the strife- torn state, chaired a three-hour-long closed-door meeting of BJP leaders, including Union minister Jitendra Singh, J&K Deputy Chief Minister Nirmal Singh, national general secretary Anil Jain and state BJP chief Sat Sharma, at the government convention centre.
After the meeting, BJP leaders said he expressed concern over the tense situation in the state and said the Centre and the party were committed to bringing peace there.
He said Shah directed all BJP office bearers to expand the party's base at grassroots level in all three regions of Jammu, Kashmir and Ladakh.
He advised ministers and other leaders to go beyond their respective constituencies, reach out to the people in the Valley and Ladakh region, listen to them and resolve their issues.
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"It is the agenda of the BJP that the nation comes first, and the party comes second," he said.
"We will strengthen democracy in Jammu and Kashmir. It is our priority to restore peace, normalcy and rule of law in the state and the Kashmir Valley in particular. The BJP's policy is clear that we will talk to all stakeholders but not to separatists," he said.
BJP national vice president Avinash Rai Khanna told reporters that Shah asked local party leaders to strengthen its base in the state.
Shah's J&K visit is part of his 95-day-long country-wide "vistaar yatra" during which he will strategise on ways to win the 2019 Lok Sabha elections, with focus on clinching 120 seats where the party had lost in 2014.
This is his first visit to Jammu and Kashmir since the formation of the PDP-BJP government in 2015.
The BJP chief will inaugurate the Nanaji Deshmukh Library and e-Library tomorrow and release a book at the party headquarters at Trikuta Nagar.
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