An Indian soldier takes cover as the Taj Mahal hotel in Mumbai burns during a gun battle between the Indian military and militants in November

India's president has signed into law a bill creating an anti-terror investigation agency, following last month's deadly terrorist attack in the commercial city of Mumbai.

President Pratibha Patil on Wednesday approved the measure to set up a national agency resembling the U.S. Federal Bureau of Investigation. Ms. Patil also signed an anti-terror bill designed to boost police powers.

Indian Home Minister P. Chidambaram addresses the media in New Delhi, 31 Dec 2008

Home Minister Palaniappan Chidambaram announced the new measures at a news conference. He said authorities will name a director for the investigation agency in the next few days.

India's parliament passed the bills following the three-day terrorist siege in November, in which more than 170 people were killed.

The laws will allow police to hold suspects for up to 180 days - double the current limit. They also will allow authorities to restrict the finances of suspected terrorists.

India's state security agencies came under intense scrutiny last month after failing to detect the Mumbai attacks.

U.S., British and Indian officials say there is clear evidence that the attackers received training from terrorist camps inside Pakistan. Pakistani President Asif Ali Zardari has said he has seen no conclusive evidence to support that claim.

Some information for this report was provided by AP.