India offers a better chance than China to investors to pump money into non-performing assets restructuring as it has a better environment for recovery, according to consulting firm PricewaterhouseCoopers.

PwC will submit to the central government next month its report on developing a conducive environment for restructuring non-performing assets, David Edmonds, PwC lead partner, said in Mumbai on Monday.

The report, commissioned by Asian Development Bank, would focus on creating conducive legal and tax environment of NPA management, including working of asset restructuring companies, Edmonds told reporters on the sidelines of a seminar organized by Indian Banks' Association.

The legal provisions for insolvency needs to be revisited and there is a need to give tax incentives to investors to encourage them to actively participate in ARC activity, he said.

It still takes long to get borrowers and lenders to bring them together to fix problems in NPAs, he said, adding that "with a 90-day norm for recognising an asset as bad asset, banks will have to focus on near term to take immediate action when they see signs of problems for borrowers."

Asked about the foreign investors' interest to restructure stressed assets  in India, Edmonds said that the Securitisation Act and foreclosure provisions "are a huge leap forward" but the country has to rework costs and tax incentives to attract overseas distress asset investors.