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Budget 2021: Multiplex owners meet FM Nirmala Sitharaman

  • Th delegation led by Sanjeev Kumar Bijli, joint managing director of PVR Ltd and Kamal Gianchandani, chief executive officer, PVR Pictures, among others, along with actor and BJP MP Sunny Deol met Sitharaman to consider what they deem necessities to help the ailing sector.

Film business in India is expected to contract by 67% over FY21 according to a recent KPMG report. (Photo: AP)

 Representatives of the country’s top multiplex chains met Union minister of finance and corporate affairs Nirmala Sitharaman on Friday to discuss the grave challenges facing the industry in the wake of the covid-19 pandemic that has led to the permanent shutdown of over a thousand screens across the country. Film business in India is expected to contract by 67% over FY21 according to a recent KPMG report.

Th delegation led by Sanjeev Kumar Bijli, joint managing director of PVR Ltd and Kamal Gianchandani, chief executive officer, PVR Pictures, among others, along with actor and BJP MP Sunny Deol met Sitharaman to consider what they deem necessities to help the ailing sector. Cinema owners had also met union minister of information and broadcasting Prakash Javadekar earlier this week.

“Our primary request was a relaxation in the 50% cap on theatre occupancies which the I&B minister said he will consider but has made no commitment to yet," a senior executive at a multiplex chain said on condition of anonymity. Given that power and electricity charges and entertainment tax rates are all state subjects, multiplex representatives spoke to Sitharaman to request waivers or reduction in the same in the run-up to the Budget at the end of the month, which she said the government will consider.

“Theatre owners are essentially requesting for some sort of return to normalcy given that they are viewing OTT platforms as a major threat now," said a film trade analyst who did not wish to be named. With a bunch of big-ticket and medium-budget titles including Laxmii, Coolie No.1, Bhuj: The Pride of India, Sadak 2, Gulabo Sitabo and others having bypassed theatrical release last year, cinema owners have reason to worry as filmmakers may no longer see theatres as the primary mode of release and audiences may continue to prefer to watch films in the comfort and safety of their homes at what they consider nominal rates.

The upcoming Union budget is likely to be crucial for the film and entertainment industry, devastated by the covid-19 pandemic. Theatre owners have sought easier means of doing business, including waiving off or reduction in power and maintenance charges, which can range up to 20 lakh per month, single window license to open more screens, and access to finance for multi-utility facilities such as food courts to open up alongside cinemas. Waiver of SGST (state goods and services tax) on ticket prices, subsidies on land and government schemes to protect old theatres are also major demands.

Via: https://www.livemint.com/industry

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