The ministry is also working on a proposal to let a significant portion of the $3 billion of extra funding promised by the World Bank to flow into state-owned banks as tier II capital. Banks can then leverage this to increase manifold their lending to the infrastructure sector.

The officials said given the fact expenditure in new infrastructure projects will take time, the priority was to increase the spend in ongoing projects. “We can double the expenditure on projects under way,” an official said.

The Planning Commission is also expected to submit a detailed plan for increasing investments in the infrastructure sector. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, said the plan would be submitted during the week.

In a statement later in the day, the finance ministry said Manmohan Singh called the Finance Secretary and other secretaries today after assuming charge of the Ministry. “They (secretaries) briefed him on issues of importance in the current context specially those relating to the economic slow down that have been engaging the government's attention.”

The Prime Minister gave his overall directions regarding the transaction of official business in the ministry and stressed the need for close monitoring and timely steps for maintaining the growth momentum, it added.