New Delhi, Sep 16 (ANI): The Union Cabinet today accorded approval to the revival plan of the National Film Development Corporation Ltd. (NFDC).
Under this, an additional equity of Rs. 3.00 crore will be infused and the outstanding Government loan of Rs. 19.77 crore along with accumulated interest of Rs. 8.63 crore on it will be converted into equity.
The fresh infusion of equity of Rs. 3.00 crore along with internal accruals/recovery of outstanding dues of Rs. 2.95 crore will be used by the Corporation to finance its computer hardware and software, establish an Art House Digital Exhibition Network and renovate/upgrade their properties.
The conversion of loans into equity and interest outstanding thereon will rid the Corporation of the heavy interest burden and liability to repay the loan.
It will further help them in cleaning up their balance sheet and start afresh.
The net worth of the corporation shall turn positive and the paid up and authorized capital of NFDC will increase to Rs. 45.40 crore and Rs. 45.39 crore respectively.
The NFDC expects to commence making profits from 2010-11 onwards. A higher level of equity in the Corporation will enable it to fulfil its mandate of promoting the growth of Indian Cinema.
The NFDC was incorporated as a public sector undertaking in 1975 with the objective to plan, promote and organize an integrated and efficient development of the film industry of the country in accordance with the economic policy and objectives laid down by the Central Government from time to time.
Accordingly NFDC has funded/ produced more than 300 films in eighteen Indian languages.
The role played by NFDC in promoting new talent within the film industry has been significant in the growth of the Indian cinema since inception. (ANI)