Bifurcation hasn’t led to any problems: Suresh Babu

The new president of the Telugu Film Chamber of Commerce, Suresh Babu, will be taking charge soon. This is the first time that he is going to retain the post after the state’s division. “Except for some small issues, no new problem has arisen due to the bifurcation,” Suresh Babu says, adding, “Both states have the same entertainment tax. But the only problem is that Telangana has a Film Development Corporation (FDC) and Andhra Pradesh does not have one.”

A few subsidies for low-budget films are on the anvil from FDC. The issue has been pending for a long time. “We are still discussing it,” he says, adding, “Before digitalisation, films that would release with less than 30 prints were considered low-budget films. Now, it’s all digital and many do not use reels; so we have to decide whether 100 prints or 150 prints will be considered as low budget. We have to sort this out.”

Though people are talking about Telangana and Andhra cinema, Suresh Babu says this is not an issue at all. “It’s how we sustain our business well as an organisation with the changing times. We have to adapt to new technology. I would like to understand everything carefully and take steps beneficial for everyone like the exhibitor, distributor and producer. This is my top priority,” he says.

“After Baahubali, everyone now knows that our market can be bigger if we come up with the best product with good marketing. To create such circumstances in the industry is my main goal,” he adds.

Talking about FDC, which gives subsidies to small films or art cinema, Suresh Babu says that producers should not rely on these subsidies. “The FDC mainly helps small or art cinema. At that time, they gave many subsidies and now that we are established, the FDC has set up some rules and we have to follow them. I, personally, feel that small cinema should not survive only on subsidies. It is just a part of it and we have to be strong on our own. But we should definitely ask the government to give subsidies like tax exemptions for alternative cinema,” says Suresh Babu.

The other big problem, he says, is rates while shooting on location. “The government is charging high rates for the shooting locations, which we want them to reduce. We are also asking for a single window system for permissions. These are some problems I have to discuss with the government,” he says.
Interestingly, the Central government is hiking the rates for shooting at railway stations from Rs 2.5 lakh to Rs 5 lakh per day.

About producers planning to come up with mini theatres, he says, “Though mini theatres are an interesting concept, all buildings come under the National Building Code, which are strict and aggressive. They look more at safety and we want them to be a little softer. It is not going to be easy to change the rules and we have to see what can be done,” he says.

The other big issue is service tax. “It’s a Central government issue and we have to represent it from Telugu cinema,” he says. He adds that fortunately or unfortunately the film industry is very small, but the visibility is very big.

“The annual business of TFI is nearly Rs 1,500 crore and the television and MSO operator business is bigger than the film industry. But everybody eyes the film industry because of its glamour,” says Suresh Babu.