Bollywood Corp gets a fillip

He however hinted that the industry would first have to regularise its operations andbring in some degree of corporatisation before banks began to feel comfortable with its ways. quot;It is a question of two different kinds of people coming together speaking different languages. It will take a while before they get to know each other,quot; he told the assembled film producers, distributors, exhibitors and representatives from the banking and insurance sector.

Film maker Yash Chopra urged banks to come forward and support quot;smaller producers who have to resort to raising money from questionable sourcesquot;. While FFI president S S Jain asked that finance be extended not just to film makers but also towards strengthening the exhibition and distribution systems as well as infrastructure components like studios, processing laboratories, equipment and publicity accessories.

quot;We have been meeting representatives of the Indian Banking Association and have tried to dispel their fears about this totally disorganised industry8217;. In fact, if they support us, it may be easier for us to get organised. Besides,banks and FIs have no reason to worry about recovering their investment because a financier or a producer never loses money on any film project,quot; he said. He also pointed out that fluctuations aren8217;t alien to other industries and businesses, but that hasn8217;t stopped banks from sanctioning them loans.

Ashok Wadhwa, managing director of Ambit Corporate Finance, said corporatisation has worked well in other parts of the world, Hollywood studios being a case in point. quot;The problem lies not with the industry but with the environment we are operating in. It is important to devise common accounting standards for the entire industry in order to establish its credibility,quot; he said.

Bobby Bedi, producer of films like Bandit Queen and Fire, said raising corporate money and getting insurance cover shouldn8217;t pose a big problem. quot;But you need to know your script in advance, and schedules and budgets need to be more or less frozen before you start shooting,quot; he said.

An expert from Denton Hall, UK, KenDearsley, informed the gathering about various financing and insurance schemes that are being followed in the US, UK and western countries. In fact, the United India Assurance Co has covered Subhash Ghai8217;s Taal 8211; the first Indian film to get insured 8212; against practically every kind of risk. Ghai has taken everything, from cast insurance to third party property damage, technical equipment and office property insurance.