SRINAGAR (Agencies) - Reaching out to Pakistan, Indian Prime Minister Manmohan Singh on Friday said India was keen to normalise relations with Islamabad and advocated "new ways" of working together to address all outstanding issues, including the Kashmir dispute in a friendly manner. "We want to normalise relations with Pakistan," Indian Premier Manmohan, who is on a two-day visit, said at a crowded Press conference. Showing readiness to resolve all issues, including Kashmir problem with Pakistan peacefully, he said he had held very good meeting with Pakistan's President Asif Ali Zardari in New York last month. "I asked him to start a new era of relationship in South Asia." India wanted to leave the past behind, he said, adding that all issues with Pakistan could be resolved in a friendly atmosphere. "Borders cannot be changed but they can be made irrelevant," he said. "We must create conditions whereby a Kashmiri living in Srinagar or Muzaffarabad should not see any problem about people-to-people contacts." He described as "irrelevant" old ways of thinking. He said "new ways" of working together were required to strengthen bilateral ties between the two countries. To a question on the situation in Pakistan, he said strong, stable, prosperous and peaceful Pakistan was in India's interest. He said Pakistan and India were committed to peace process to bring peace and prosperity. He said good relations with Pakistan were an essential part of India's policy. The Indian Premier also made it clear that the government was open to holding dialogue with all shades of opinion in the State, inviting all groups in Kashmir, including APHC, for talks to resolve problems. "They are welcome to come. I am not closing my doors," he said. When asked on withdrawal of Armed Forces (Special) Powers Act, he said, "It is too early, frankly, to consider this. If the situation begins to normalise, we have to review it. The situation today is not of that sort. I can't assure you," he said. Earlier commissioning the controversial Baglihar Dam in Jammu, he said Pakistan's concerns had been addressed on the project. Indian has built 450 MW Baglihar hydel project on Chenab River despite serious objections raised by Pakistan on the design of the project, which had hindered the normal flow of water in the river. Addressing a public meeting on the occasion at Chandrakote (Jammu), he said while setting up the project, special care had been taken to ensure that "genuine concerns" of Pakistan were taken care of so that it had no complaints on the dam. Congress President Sonia Gandhi, IHK Governor N N Vohra and Union Ministers Lalu Prasad and Jairam Ramesh accompanied the Indian PM in inaugurating the first phase of 450 MW project. "It is the duty of people of India and Pakistan to learn to lend a helping hand to each other," he said, adding "I would like to invite Pakistan to work with India in achieving this objective." The Indian Premier commissioned the project under tight security as hundreds of security personnel were deployed on nearby hilltops, roads and the venue where he delivered speech. Meanwhile, complete strike was observed in Occupied Kashmir on the call of the Kashmir Coordination Committee on the visit of the Indian Prime Minister. Mirwaiz Umer Farooq said the economic packages announced by Manmohan were not solution to the Kashmir issue. He said Kashmiris should be included in Pak-India parleys on Kashmir. He vowed to continue struggle for right of self-determination. Police shot and killed two people and at least four protesters were wounded, as tens of thousands of Kashmiris took to the streets of Indian-held Kashmir to protest the visit of India's Prime Minister Manmohan Singh, police and hospital officials said. Police used teargas, batons and live ammunition to disperse the protesters, said Prabhakar Tripathi, a spokesman for the paramilitary Central Reserve Police. He said several policemen were also hurt, but he had no exact figures. One of the wounded died in a Srinagar hospital and another was in critical condition, said a doctor on duty who identified himself as Dr Ajaz. One more person died of bullet wounds at another hospital, said a doctor, Nazir Ahmed. Senior Kashmiri leader Yasin Malik told AFP that Friday's demonstration was to remind Manmohan of a pledge he made two years ago of "zero-tolerance" for human rights abuses in Kashmir. Speaking to reporters, Manmohan expressed sadness over the deaths and reiterated India's commitment to finding a solution to the Kashmir issue through dialogue. "We are willing to talk to anyone," he said.