Kochi: Heeding the film fraternity's long-standing demand, the V D Satheesan-led government declared cinema as an industry in its state budget and promised comprehensive projects to develop the Malayalam cinema sector, earmarking Rs 100 crore for the endeavor.
Film City and Industry Status
"As part of this, JC Daniel International Film City, named Chitranagaram, will be established in Kochi. Granting formal industry status to cinema, creating a permanent venue for the international film festival, forming robust anti-piracy cells, and cultivating an environment to attract premier national and international film productions are targeted through this project," Satheesan stated in his budget speech.
Industry Reactions
The government's decision is expected to give a significant push to Malayalam cinema. "We wholeheartedly welcome the government's decision in the new budget to announce projects, including a cultural park, to uplift the film sector. These projects will certainly provide fresh energy and growth to the cinema field. The announcement that steps will be taken to consider cinema as an industry gives new hope to thousands of film workers. Heartfelt thanks to Chief Minister V D Satheesan and Cultural Affairs Minister P C Vishnunadh," Mohanlal posted on his Facebook page in response to the budget announcements.
Benefits of Industry Status
Once cinema assumes industry status, Malayalam cinema can enjoy several benefits. "Producers, distributors, and others now depend heavily on private moneylenders for meeting various financial needs. If cinema is declared as an industry, funds can be availed as bank loans," said Kerala Film Chamber president Anil Thomas. "Moreover, the Malayalam cinema sector can also enjoy various subsidies and other benefits available for industries. Cinema halls, which are paying hefty electricity bills, will get power at a lower tariff as industrial enterprises," he added.
Kochi as Film Hub
It has been several years since Kochi became the Kodambakkam of Kerala, with film shootings and studios mainly concentrated in the city. Now, the state government in the budget has announced that a film city will be set up in Kochi in the name of JC Daniel, who is widely regarded as the father of Malayalam cinema. "Now, more than half of the films are being filmed in Kochi or other parts of Ernakulam district. Post-production works of around 60% of Malayalam movies are held at studios in Kochi. So, Kochi is an ideal location for setting up JC Daniel Film City," Thomas said.
Economic Impact
Around 200 Malayalam movies are released every year, with total investment ranging from Rs 800 crore to Rs 1,000 crore. Of the total movies, only around 20 generate profits, with the others ending up at breakeven or as flops. Producers and distributors attribute the loss primarily to high production costs, including interest on loans availed from moneylenders.
