The Hindu Business Line : Exim Bank to fund films with export potential

INDIAN film-makers have a new avenue for funds — Export-Import Bank of India (Exim). But there is a catch - the films must have an export potential in excess of 35-40 per cent.

Exim Bank is currently in talks with a leading film producer to fund a film project to the extent of Rs 15 crore. Bank officials did not name the producer as the papers have not been signed yet but pointed out that the producer was a big name in Bollywood.

Exim Bank's entry into film financing commenced with its first project - extending credit and advisory support to the Pune-based PPL Entertainments for dubbing the Bollywood blockbuster, Kaho Na Pyar Hai into Spanish under the title, Reencuentro Con El Destino.

This film is slated for a phased release across 20 South American countries with the first phase of release scheduled for May 2004 in Peru and Venezuela.

The dubbing and marketing of the film costs stand at Rs 1.5 crore but Exim Bank offered a loan of Rs 1 crore at an interest rate of 2.5 per cent over LIBOR.

PPL acquired the dubbing rights of Kaho Na Pyar Hai from Rakesh Roshan, the producer of the film.

According to Exim Bank officials, there is a huge potential for Indian films in the non-Indian diaspora market overseas. "We would like to take this up more seriously," Mr T.C. Venkat Subramanian, Chairman & Managing Director, Exim Bank, said.

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