NEW DELHI (Agencies) - India wants good relations with Pakistan and an environment of mutual confidence and friendship will be beneficial for Jammu and Kashmir, Indian Prime Minister Manmohan Singh said here on Thursday. Singh conveyed this assessment to Kashmir Chief Minister Omar Abdullah during their 30-minute meeting, reports PTI. The two leaders discussed in detail the development issues in the border state during which they touched upon the dialogue process between India and Pakistan, an official spokesman said here. Omar supported the prime minister's stand that India and Pakistan should have good neighbourly relations and said he favoured resumption of their bilateral dialogue at the earliest, the spokesman said. The prime minister observed that the state would progress in an environment of friendship between India and Pakistan, the spokesman said in a Press release. Omar briefed the Prime Minister about the law and order situation in the state and said his government was satisfied with the action taken by the Army against its own personnel in the Bomai incident. During the meeting, the prime minister has expressed his desire to make Jammu and Kashmir a model state of the country and said after the Lok Sabha elections, a comprehensive plan for accelerated development of the state would be formulated. Dwelling at length on the issue of development plans for Jammu and Kashmir, the prime minister called for prioritising health and education sectors. Omar briefed the prime minister about vital development issues and requested him to consider the Rs 6,500-crore draft annual plan proposed for the year 2009-10 by the state government.