Finance Minister P Chidambaram has asked his officials to target Fortune 500 companies for increased investment in India.

Ministry sources said he would meet these companies on his overseas tours and promote India as an investment destination.

The ministry has simultaneously started work on finalising an action plan to step up investment flow to the manufacturing and core sectors. It is also devising ways to improve credit availability to the agricultural sector.

Finance Sector Secretary NS Sisodia on Wednesday met representatives from the Reserve Bank of India, National Bank for Agricultural and Rural Development and the Indian Banks' Association to consult them on the course of action.

According to government sources, the inputs will be used for President APJ Abdul Kalam's joint address to Parliament. The President's address provides the direction the government in policy-making on various fronts.

The constituents of the United Progressive Alliance, including the Congress and the Left parties, have identified increased investment in the economy and higher credit flow to the farm sector as priority items.

The finance minister has already promised massive investment in the agriculture and manufacturing sectors to boost economic activity and create more jobs.

While bankers said it would be difficult to reduce the interest rates on farm credit below the present level of 8.5-9 per cent, they said various institutional measures could be taken to improve the flow of credit to the sector that accounts for nearly 25 per cent of India's gross domestic product.

They said the inputs given by the Vyas Committee, including those on collateral for farm loans and treatment of non-performing assets, would also be crucial in the government's scheme of things.

If Power Minister PM Sayeed was able to impress upon lending institutions for financial closure of private power plants with 8,000 mega watt generation capacity by June, over Rs 30,000 crore (Rs 300 billion) credit flow would be ensured, the head of a public sector bank said.

The National Democratic Alliance government had announced its intention to step up manufacturing and infrastructure investment through a Rs 50,000 crore (Rs 500 billion) fund which had so far not crystallised, bankers said.

Another Rs 50,000 crore fund for the agricultural sector was promised through renaming of the Rural Infrastructure Development Fund operated by Nabard.

Bankers said the new government was trying to go beyond merely renaming existing schemes.