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HYDERABAD, June 20

HIT by spiralling cost of production and "lack of response" from the State Government on several important issues, the Telugu film industry has said that urgent action is needed to rescue it from going the Bollywood way and help it survive the difficult times.

While asking the Government to keep its promise on issues like subsidy and single-window system, the Andhra Pradesh Film Chamber of Commerce (APFCC) has urged producers to cut cost of production.

"The fact that the industry lost Rs 80-90 crore in the last three months shows the state of affairs. Even big names in the industry have failed to click at the box office, leaving the exhibitors with huge losses," Mr B.V. Reddy, President of APFCC, said.

Addressing newspersons, he said that it was high time producers sat together and took a serious look at the skyrocketing cost of production. As a result of the poor run, as many as 500 cinemas were on the verge of closure, he added.

"Unless this is taken care of, the film industry may go the way of Bollywood, which is in the clutches of the mafia."

Mr Reddy also said that the Film Development Corporation (FDC) had failed to deliver. "We contribute Rs 4.2 crore to the FDC coffers. The idea is that the corporation will act as a co-ordinator and facilitator. But it has failed miserably."

The Executive Committee of the chambers, which met on Friday ahead of the general body meeting on Saturday, decried FDC role.

With regard to the single-window system, Mr Reddy said that the system, which aimed at providing a one-stop permission facility for shoots, was not grounded properly.

"We are going to be charged heavily by various organisations turning a Nelson's eye to the permissions granted by the corporation. Both the Centre and the State Government have agreed to grant industry status for the industry, but benefits of such status still elude us."

Mr Reddy also said that the Government should reduce entertainment tax on old films. "They charge 24 per cent on old films (films which are produced five years ago are considered `old') compared to 14 per cent on high-budget films and 10 per cent for low-budget films."

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