National Film Development Corporation : Analysis – UPSC GS2

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National Film Development Corporation:
  • National Film Development Corporation (NFDC) is a Public Sector Undertaking (PSU) working under the Ministry of Information and Broadcasting which was established in 1975 with a view to promote and organize an integrated development of the Indian Film Industry and to foster excellence in cinema.
  • Ministry of Information and Broadcasting announced the merger of four film media units, including the Films Division, Directorate of Film Festivals, National Film Archive of India, and Children’s Film Society of India with the National Film Development Corporation.
  • The decision is in line with Bimal Julka-led expert committee’s (2020) report on rationalisation, closure and merger of film media units.
What will be the Significance of the Merger?
  • Better Coordination:
    • Bringing all these activities under a single management will reduce the overlap of various activities and ensure better utilisation of public resources.
  • Give Strong Impetus to the Production of Films:
    • It will give a strong impetus to the production of films of all genres including feature films, documentaries, children films and animation films, promotion of films through participation in different international festivals and organizing various domestic festivals, preservation of filmic content, digitization and restoration of films, and distribution and outreach activities.
  • The ownership of the assets available with these units will, however, remain with the Government of India.
What are the issues with the Merger?
  • National Film Development Corporation is a loss Making Corporation: The four public-funded bodies are being merged with a loss-making corporation.
  • No Concrete Plan on Merging:
    • There is no concrete plan on how the transfer of archives will be carried out as celluloid (‘used for cinematographic film) is fragile and inflammable material.
    • There may be a case of disinvestment if NFDC will not generate profit. In that case if our archives do not remain autonomous public institutions, they will undoubtedly be tampered with, damaged, or destroyed forever.
What is the State of India’s Film Industry?
  • India is the largest producer of movies globally with an industry that is led by the private sector and produces more than 3000 films in a year.
  • The value of the film industry in India in the financial year 2020 was about 183 billion Indian rupees.
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