The panel said films like 'Alam Ara', which was the first talkie made in the country, are also reportedly lost and the government should institute a comprehensive review of NFAI with a view to revamping the organisation.
The panel also suggested classics of regional cinema should be uploaded on the social media to ensure wider reach and generating more revenue.
It called for a comprehensive policy and said an appropriate legislative provision should be incorporated to ensure that film-makers and private collectors part with a copy of their films to NFAI for preservation.
The Committee expressed disappointement that while the government had envisioned a National Film Heritage Mission (NFHM), digitisation and restoration work at NFAI had come to a standstill during the last two years pending implementation of the mission.
The panel also said promotion of film studies was a neglected area for NFAI.