Telangana Film Chamber Disputes AP Film Chamber’s Role In Telangana State

The first dispute following the bifurcation of the state has cropped up in the multi-crore Telugu film industry.

The AP Film Chamber of Commerce’s (APFCC) decision to change its name to Telugu Film Chamber of Commerce so that it can continue to have a hold on the entire film industry both in AP and Telangana has not gone down well with the Telangana Film Chamber of Commerce.

According to procedure, a film producer first registers the film title with the film chamber. Only when the film chamber issues a No Objection Certificate (NOC) can the producer apply for a censor certificate. The producer can also get tax benefits and subsidies, if any, from the state government based on the NOC given by the chamber.

With the division of the state into Andhra Pradesh and Telangana on June 2, producers will now have to choose between the two states. Telangana Film Chamber of Commerce (TFCC) president M Vijayendar Reddy said if films are made in Telangana and tax concessions and subsidies claimed from Telangana government, producers will have to take an NOC only from TFCC.

He said if producers would like to avail benefits from the Andhra Pradesh government, they should take an NOC only from APFCC. He said he would raise an objection with the Telangana government and also the film development corporation not to grant recognition to the Telugu Film Chamber of Commerce.

So far, TFCC has maintained a relatively low profile in so far as trade activities are concerned, though it is a complete body comprising a producers’, distributors’, exhibitors’ and studio sector like their AP counterparts. Now with Telangana becoming a separate state, the TFCC intends to come into its own.

Tollywood is one of the most vibrant film industries in the country along with Tamil and Hindi. Nearly 300 films are produced in Telugu every year. However, it is the Nizam’s territority – comprising Hyderabad and Telangana districts – that earns a major portion of the revenue for any film. Film produced outside the state had to pay 24% entertainment tax in the undivided state.

One big concern for film producers from AP is whether their films will also have to pay 24% tax from now on in Telangana. However, on this issue there is perfect understanding in the film fraternity of both AP and Telangana. They want both states to have the same taxes and concessions so that no one will be at a disadvantage.

Source: ToI