Highlighting India Inc's drive for fresh investments, the Federation of Indian Chamber of Commerce and Industry on Thursday called for the revival of development finance institutions either by allowing agencies like International Finance Corporation and Asian Development Bank to play strategic roles in DFIs or through channelising the provident funds and postal savings into them.

In a survey carried out on 248 companies having turnover upto Rs 50,000 crore (Rs 500 billion), 89 per cent of the respondents asserted that they have plans for fresh investments in the near future with majority going for debt sources.

A whopping 80 per cent of the respondents felt that the revival of DFIs were crucial for supporting the investment programmes of the Indian industry though DFIs had not been active during the last five years.

This call comes in the wake of the proposed conversion of Industrial Development Bank of India into a bank and the proposed merger of IFCI and IDFC with Punjab National Bank and State Bank of India, respectively.

In its study on 'Long-term financing needs of the Indian industry', FICCI said DFIs "could invite strategic investors" including multi-lateral agencies like Asian Development Bank and World Bank's private sector lending arm, International Finance Corporation.

Alternatively, FICCI president Y K Modi said, "Suitable incentive schemes should be devised to ensure flow of some part of the long-term funds such as PF/pension/gratuity fund and postal savings to DFIs to help their financing needs."

Besides seeking tax concession on the bond issues and tax exemption on profits of DFIs, it said DFIs should be assisted in hiving off their NPAs to asset reconstruction companies and be required to maintain statutory reserves with the Reserve Bank of India.