Bifurcation unlikely to trigger shift of Telugu film industry

Hyderabad: The division of Andhra Pradesh is unlikely to have a major impact immediately on the Telugu film industry based in Hyderabad, though tax structure would be a motivating factor, leading film personalities said here today.

"Our wish is to see that Telugu cinema industry grows. It depends on how the two governments act. Shifting (to another city) is not an easy thing. It involves several factors like taxes, infrastructure, incomes and children's education. "This generation (of film artistes and technicians) would probably like to stay back," D Suresh Babu, a top film producer, told.

Those from Seemandhra have traditionally dominated the Rs 1,000 crore Telugu film industry, among the top film making units in the country.

The Telugu film industry is based in Chennai for several decades before shifting to Hyderabad since late 1980s and early 1990s.

Hyderabad now boasts of several film studios, including the world famous Ramoji Film City, in which Tamil, Hindi and other language films are also shot.

Coastal Andhra cities like Visakhapatnam and Rajahmundry have traditionally been destinations for many a filmmaker because of their scenic beauty. Echoing the views of Suresh Babu, another popular filmmaker Tammareddy Bharadwaja recalled that the shift of Telugu film industry from Madras to Hyderabad took a number of years.

Certain aspects of filmmaking have still not shifted base to Hyderabad, he said. He, however, said things are not yet clear on various counts, as the process of division has just begun. The structure of taxes would definitely influence the filmmakers in carrying out business in a particular state, they said.

"Much depends on taxes. If tax exemptions are given, it would be a natural attraction," Bharadwaja said. "It depends on taxes. It makes better economic sense to take advantage of tax incentives, if any," Suresh Babu, brother of popular hero Venkatesh, said.

The proposed implementation of tax incentives in the residuary state of Andhra Pradesh (Seemandhra), as announced by the Centre, is definitely an industry-friendly move, he said.