Indian film industry lost Rs 300 crore (Rs 3 billion) on gross revenues of Rs 3, 900 crore (Rs 39 billion) during 2002, Rajya Sabha was informed on Monday.
Quoting a report on Indian film industry brought out by the Federation of Indian Chambers of Commerce and Industry and KPMG, Minister of State for Information and Broadcasting Ravi Shankar Prasad said in a written reply that the industry was likely to break-even within the next 18-24 months.
"The upswing being driven by consolidation, increasing corporatisation and an eventual integration of various components of the industry like production, distribution and exhibition," he said.
Over the next five years, films produced by large organised houses are projected to grow to around 55 per cent from the current level of 20 per cent.
Prasad said in order to facilitate a greater flow of institutional finance to the film industry, entertainment industry has been specified as an approved activity for extending loans under the IDBI Act.
The Reserve Bank of India has also evolved guidelines to enable commercial banks to fund film production. "These steps have eased the flow of institutional finance into film production," he said.
In addition, the FDI regime for films has been further liberalised.
Several tax concessions have also been given to the film industry during successive budgets. In the Budget 2003-04 audio CDs have been exempted from levy of Central Excise Duty, he added.
