Hyderabad, Aug 1 () : The Telugu film industry known as Tollywood is likely to face a few issues after the formation of Telangana.
Tollywood, the second largest film industry after Bollywood, is likely to face taxation issues and rescheduling shootings in Andhra coastal regions. Five studios are in Hyderabad and all of them are owned by persons hailing from Andhra. D Rama Naidu who has a studio in Hyderabad has a studio in Vishakapatnam which now comes under Andhra.
Almost all the big names in every sphere of film making are hailing from non-Telangana areas. Be its producers or financiers and the big film families like Chiranjeevi, Nagarjuna, Balakrishna NTR and others come from the coastal Andhra.
Tollywood which was rooted in Chennai shifted to Hyderabad with State Govt offering many facilities to set up a base. The capital city and the surrounding areas that fall under the proposed Telangana State alone contribute to 45% of the box office.
The city’s multiplexes and state of art technical studios has made it the base of Tollywood. To shoot scenes that have a native look, the directors move to coastal Andhra for the greenery.
Earlier, Tollywood suffered Rs 7 crore loss on an average per day due to disruptions in Telangana region. Now, they will face a similar situation in coastal Andhra which is opposed to Telangana.
Yet another worry is that the new State to mop up revenue will hike the ET tax from 13% and 20% of small and big budget films. Similarly, Andhra devoid of the revenue from entertainment sector based in Hyderabad would do a similar step.
Telugu films are distributed in three regions. Nizam, the biggest money spinner is the Telangana area; CEDED region has Kurnool, Anantapur, Davangare, Kadappa and Bellary and the third area is Andhra.
Most of the financiers are from Rayalaseema area of Andhra. Ramcharan Teja, Allu Aravind and Pawan Kalyan, all hailing from Chiranjeevi family are facing a ban in Seemandhra. They say Chiranjeevi being in the Union cabinet and hailing from Andhra’s West Godavari did not prevail upon the Congress and stop formation of the new State.
Around Rs 100 crores is locked in the films of these stars. Before the announcement of the new state, producer Dil Raju, who is the producer of Yevadu (starring Chiranjeevi’s son Ramcharan Teja) decided to postpone his film as it was clashing with Attarintiki Daredi (starring Chiranjeevi’s brother Pawan Kalyan). Now, the fate of both the films in Andhra region is in a limbo.