The Multiplex Association of India and FICCI have jointly written to the Prime Minister, Finance Minister and the Minister of Railways, Commerce & Industry, seeking a relief package for the cinema exhibition industry after the COVID-19 lockdown. The reliefs sought by the exhibition sector from the government include:
(i) reimbursement of employees’ salaries for the period of cinema closure, to the extent of 75%;
(ii) provision of interest-free loans for three years with one year moratorium to help multiplexes tide over the crisis and prevent any kind of default from their side on account of staff salaries, electricity dues, loan repayments and interest payments etc.;
(iii) exemption on all taxes including GST, show tax, local body entertainment tax and property tax for one year from the date of resumption of normal cinema operations;
(iv) clarification from the government on the point of force majeure clause by including the COVID-19 as a force majeure event, to avoid disputes between developers/landlords and multiplexes;
(v) a waiver on the minimum demand charges and electricity duty on electricity for a period of one year;
(vi) a blanket exemption for six months for renewal of licences and permits which expire during the lockdown period or their auto renewal.
On its part, the MAI has assured the government that its members i.e. the various multiplexes will give topmost priority to the health and well-being of patrons when cinemas reopen.
The letter states that India is one of the largest film-producing countries in the world, which made 1,800-plus films in 2019. It also says that India has one of the largest number of film consumers in the world. In 2019, it sold 1.45 billion tickets while its gross box-office revenues totalled Rs. 115 billion. The letter underlined the fact that cinemas provided direct employment to more than 2 lakh people. It rued the fact that the country had less than 8 cinema screens per 1 million population.