By:
Screen
Weekly,
IndiaFM
Monday,
July
02,
2007
For
years,
the
world's
largest
film
industry
was
the
fiefdom
of
diamond
and
cotton
merchants.
In
fact,
seven
years
ago,
Bollywood
was
financed
by
these
traders,
often
charging
hefty
rates
of
interest.
However,
thereafter,
the
colour
of
money
in
the
Mumbai
film
world
was
tainted
by
underworld
fundings.
Although
you
still
hear
of
a
director
here
and
an
actor
there
getting
calls
from
the
Bhais,
things
have
largely
changed,
for
the
better,
in
Bollywood
after
the
government
declared
it
an
"industry" in
2000.
As
the
industry
progresses
inexorably
towards
corporatisation,
you
hear
less
and
less
of
a
director
going
bankrupt
because
his
or
her
movie
failed
at
the
box
office
and
the
money-lenders
could
not
be
paid
back.
One
of
the
reasons
could
be
the
neighbourhood
banks
have
begun
financing
Bollywood,
although
not
in
a
big
way.
Consider
this:
Exim
Bank,
which
funded
the
industry
to
the
tune
of
Rs
100
crore
last
year,
has
chalked
out
a
plan
to
increase
funding
to
Rs
300
crore
this
financial
year.
Among
some
of
the
films
it
helped
finance
are
the
Yash
Raj
Films'
Ta
Ra
Rum
Pum,
Cheeni
Kum,
Honeymoon
Travels
Pvt
Ltd,
Kabul
Express,
Dhoom:2,
Don-The
Chase
Begins,
Fanaa,
Bunty
Aur
Babli,
Salaam
Namaste,
Veer-
Zaara,
Mangal
Pandey
-
The
Rising,
Dhoom
and
Hum
Tum.
Exim
Bank
is
also
funding
a
slew
of
animation
films
that
are
yet
to
hit
the
silver
screen.
The
Indian
film
industry
is
the
world's
biggest,
according
to
a
Yes
Bank
report,
if
you
go
by
the
numbers.
In
2004,
there
were
934
films
certified
across
the
country,
with
Hindi
accounting
for
245
of
them.
What's
more,
a
staggering
3
billion
people
have
gone
to
the
theatre
to
watch
movies,
which
is
almost
double
the
US
market
and
three
times
that
of
the
rest
of
Asia,
says
Exim
Bank's
website.
However,
the
Indian
film
industry
is
considered
to
be
the
most
complex
and
fragmented
national
film
industry
the
world
over
for
a
simple
reason
that
it
comprises
a
cluster
of
regional
film
industries
that
include
Hindi,
Telugu,
Tamil,
Kannada,
Malayalam,
Bengali
and
others.
That
Bollywood
is
going
global
is
also
evident
from
the
fact
that
Exim
Bank
is
increasing
its
stake
in
the
industry-
the
bank
finances
only
those
films
that
carry
some
export
value
with
them.
Says
SR
Rao,
executive
director
of
Exim
Bank:
"We
have
been
involved
selectively
in
film
financing
as
we
clearly
recognise
the
potential
of
such
films
to
be
commercially
viable
propositions
operating
in
an
international
environment
and
to
be
in
a
position
to
generate
foreign
currency
earnings
in
a
global
context."
The
other
state-run
bank
that
is
into
film
financing
is
IDBI
Bank.
But
it
finances
only
feature
films,
not
ad
films,
short
films
or
documentaries.
It
can
provide
financial
assistance
of
not
less
than
Rs
2
crore
and
not
exceeding
50%
of
the
estimated
cost
of
the
film.
Meanwhile,
save
for
these
two
major
banks,
no
other
private
or
public
sector
bank
has
come
so
far
in
a
big
way
to
finance
films,
thus
leaving
the
industry
to
continue
to
be
a
privately
funded
one.
When
contacted
by
journalist,
an
HSBC
spokesman
said
as
a
policy
the
bank
does
not
do
any
kind
of
film
finance.
The
private
sector
bank,
Yes
Bank,
has
restricted
its
activities
to
providing
advances
to
firms
like
Pritish
Nandy
Communications
(PNC)
and
'Studio
18'.
While
PNC's
latest
films
include
Just
Married
and
Pyar
Ke
Side
Effects,
Studio
18
has
ventured
into
co-production
and
distribution
activities.
As
far
as
IndusInd
Bank
is
considered,
it
says
that
it
may
enter
the
field
sometime
in
the
future,
but
has
not
chartered
out
any
time
schedule.
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