Balakrishna Opens a New Chapter for Tollywood in Amaravati
A leading exhibitor from Andhra Pradesh has also voiced concerns over what he describes as a long-standing imbalance in the industry's approach toward the two Telugu states.
Hyderabad may no longer be the sole destination for major Telugu film events. In a significant development, Nandamuri Balakrishna is set to launch his next film with director Koratala Siva in Amaravati on June 25, a move that industry insiders believe could strengthen Andhra Pradesh’s efforts to emerge as a key film destination.
Tentatively titled NBK112, the film will be formally inaugurated at the TTD Temple in Venkatayapalem, Amaravati, in the presence of distinguished guests, including Andhra Pradesh Ministers Nara Lokesh and Kandula Durgesh.
“Balakrishna is setting a positive precedent for Andhra Pradesh. He is not only a leading actor but also a three-time MLA from Hindupur. Once he begins this trend, more actors are likely to follow suit,” says a senior producer.
He argues that Andhra Pradesh deserves greater attention from the Telugu film industry considering its dominant contribution to theatrical revenues.
According to trade estimates, Andhra Pradesh has nearly 1,000 theatres, compared to around 450 in Telangana. “The difference in theatre count is reflected in box-office collections as well,” the producer notes.
The development comes at a time when the Andhra Pradesh State Film Development Corporation is stepping up its activities. After holding its maiden board meeting recently, the corporation is reportedly working on several initiatives, including the revival of the prestigious Nandi Awards and the organisation of multiple industry events across the state before the end of the year.
A leading exhibitor from Andhra Pradesh has also voiced concerns over what he describes as a long-standing imbalance in the industry's approach toward the two Telugu states. “Nearly 70 percent of a Telugu film’s theatrical revenue comes from Andhra Pradesh, while Telangana contributes around 30 percent. Despite this, most leading producers continue to operate exclusively from Hyderabad and show little interest in developing Andhra Pradesh as a film destination,” he says.
The exhibitor further points to the taxation structure as another factor that has historically favoured Telangana. “Since most production houses are headquartered in Hyderabad, GST filings are made there. Of the 18 percent GST collected on movie tickets, 9 percent goes to the Centre, while the remaining 9 percent is allocated to the state where the tax is filed,” he explains.
However, the situation could change if Andhra Pradesh Chief Minister N. Chandrababu Naidu’s proposal to offer tax incentives or refunds to producers filing GST in Andhra Pradesh is implemented.
“Such measures would encourage producers to establish offices in Andhra Pradesh. The state government has already waived location charges for film shoots in many areas, whereas filming in Telangana often involves higher costs,” he adds.
Industry sources also indicate that several investors and film personalities are exploring opportunities in Andhra Pradesh. There is growing buzz about plans for new studio infrastructure, outdoor shooting facilities and film-related investments in the state.
“Bollywood personalities, including actor Sanjay Dutt and a few other investors, are reportedly examining opportunities to establish studios and film infrastructure in Andhra Pradesh. If these projects materialise, they could generate substantial revenue and gradually shift some of the industry's focus from Hyderabad to Andhra Pradesh,” the exhibitor concludes.
Balakrishna’s Amaravati launch is being viewed as a symbolic first step towards a more balanced growth of the Telugu film industry across both Telugu states.
