Addressing a public meeting at Bimathang playground in Kargil town, Modi said: "When I came here in 1999, all one could hear was the sound of the guns as guns were booming all around.
"Today I am only hearing clapping of hands. People in other parts of the country would find it hard to believe the situation has changed so much in Kargil."
Modi, who is on a day-long visit to the Ladakh region, said: "When I went to Kutch (Gujarat) in the past as chief minister, a person asked me why I speak of border and not development there. This rang bells in my mind. "Since then, whenever I go to border areas I always speak of development.
"My solution to problems of Jammu and Kashmir state and the north east is development, development and development," he said.
The prime minister said his government will work for honour and dignity of both displaced refugees from Pakistan-administered Kashmir who are settled in Jammu and the internally displaced members of the Kashmiri Pandit community.
Modi announced a project for the development of the local Pashmina industry
Modi also announced a project for the development of the local Pashmina industry which he named project P3.
He said the additional Rs.8,000 crore that the central cabinet would soon sanction for road development in Jammu and Kashmir would also include additional funds for the Zojila Tunnel that would connect Kargil with the rest of the country making all-weather road connectivity possible for the Ladakh region.
The prime minister inaugurated the 44 megawatt Chatuk hydro electric power project which is a run-of-the-river project built on the Suru river in Kargil. Around 6,000 people turned out to listen to the prime minister at his Kargil public meeting.
Earlier, Modi inaugurated another 45 megawatt hydro electric project in Leh town. Modi addressed a public meeting at Polo Ground in Leh town besides addressing airmen and soldiers at a Sainik Sammelan in Leh.