Addressing a public rally here, Modi said that the package was just the beginning and that Delhi's treasury will be for residents of this state.
A special aircraft carrying the prime minister landed at Srinagar International Airport around 11.20 am. Modi was flown in an army helicopter to the Badami Bagh Cantonment helipad from where he reached the Sher-e-Kashmir cricket stadium in a special cavalcade.
Governor NN Vohra, Chief Minister Mufti Muhammad Sayeed, senior ministers of the ruling PDP-BJP government, senior civil and army officers received Modi at the airport.
Union Minister Nitin Gadkari is accompanying Modi, while Minister of State PMO Jitendra Singh, who arrived here on Friday, was among those who received Modi at the airport.
A large crowd of men, women and children have gathered at the venue where Modi will address the rally.