The Ministry of Information and Broadcasting has increased the incentive for foreign film production, from 30% to 40% of the expenses incurred for film production in India. The incentive so provided would be capped at Rs.30 crore. And for Significant Indian Content (SIC), film production companies can claim an additional bonus of 5%.
An announcement regarding the revisions was made yesterday by the Union Minister for Information and Broadcasting, Shri Anurag Thakur at the opening ceremony of the 54th International Film Festival of India (IFFI) in Goa.
On May 18, 2022, two incentive schemes for audio-visual co-production and shooting of foreign films in India were unveiled at the 75th Cannes Film Festival. Initially, the incentive that could be claimed was fixed at 30% subject to an upper cap of Rs.2 crore. Further, for employing 15% or more manpower, an additional 5% bonus of up to Rs. 50 lakhs was said to apply.
The disbursement of incentives takes place in two stages; interim and final. Once the shooting permission is obtained from the Ministry of Information and Broadcasting and the Ministry of External Affairs (in the case of documentaries), the international producer can apply for interim approval through an India-based line producer or line production service company. These applications are assessed by a Special Incentive Evaluation Committee (SIEC). Based on such evaluation, the Film Facilitation Office (FFO) would issue an Interim Approval Certification with a validity period of 12 months. Upon completion of the project, an application for final approval can be made, which would be evaluated by the said Committee and processed by the FFO.