Cabinet okays merger of four film media units with NFDC

New Delhi, December 23, 2020

The Union Cabinet today approved the merger of four of the Government's film media units with the National Film Development Corporation Limited (NFDC).

The units are Films Division (FD), Directorate of Film Festivals (DFF) , National Film Archives of India (NFAI) and Children's Film Society, India (CFSI).

The move will fulfil the commitment made by the Government to support the film sector, an official press release said.

With more than 3000 films produced in a year, India is the largest film producer in the world with an industry led by the private sector.

The merger will be made by expanding the memorandum of articles of association of NFDC, which will then carry out of the activities hitherto performed by the four units.

The merger of film media units under one corporation will lead to convergence of activities and resources and better coordination, thereby ensuring synergy and efficiency in achieving the mandate of each media unit, the release said.

Films Division, a subordinate office of the Ministry of Information & Broadcasting, was established in 1948, primarily to produce documentaries and news magazines for publicity of Government programmes and cinematic record of Indian history.

Children's Film Society, India, an autonomous organisation, was founded in 1955 under the Societies Act with the specific objective of providing children and young people value-based entertainment through the medium of films.

National Film Archives of India, a subordinate office of the Ministry, was established as a media unit in 1964 with the primary objective of acquiring and preserving Indian cinematic heritage.

Directorate of Film Festivals, an attached office of the Ministry, was set up in 1973 to promote Indian films and cultural exchange.

NFDC is a Central public sector undertaking, was incorporated in the year 1975 with the primary object of planning and promoting an organized, efficient and integrated development of the Indian film industry.

The Cabinet also approved the appointment of a Transaction Adviser and a Legal Adviser to advise on the transfer of assets and employees and to oversee all aspects of operationalization of the merger.

"While undertaking this exercise of convergence, interests of the employees of all the concerned Media Units will be fully taken care and no employee will be retrenched.

"The umbrella organization, NFDC, consequent upon the merger of Film Media Units will be uniquely placed with regard to promotion, production and preservation of filmic content -- all under one management. The vision of the new entity will be to ensure balanced and focused development of Indian cinema in all its genres -- feature films, including films /content for the OTT platforms, children's content, animation, short films and documentaries.

"The merger of Film Media Units under a single corporation will lead to synergy amongst the various activities with better and efficient utilization of existing infrastructure and manpower. This will lead to reduction in duplication of activities and direct savings to the exchequer," the release added.

NNN