Kerala readies draft framework to grant Malayalam cinema industry status

The Kerala government has begun work on a draft framework to grant industry status to Malayalam cinema, a move that aims to streamline permissions, improve access to credit, and reduce operational costs for the film sector. The Department of Culture has initiated consultations with the Department of Local Self Government, the Finance Department, and the Kerala State Electricity Board to shape the policy, according to officials familiar with the matter.

The initiative follows the announcement in the Revised State Budget 2026-27, presented in the Assembly by Chief Minister V.D. Satheesan on June 19, 2026. The budget proposed industry status for the Malayalam film industry, along with a package of measures including a new film city project.

Minister for Cinema P.C. Vishnunadh said the drafting of the framework is part of the 100-day action plan of the United Democratic Front government. He noted that the process involves multiple rounds of discussions with various departments, as the framework must address regulatory and licensing aspects. “A draft framework will be formulated based on these inputs. It will be placed for discussion with the stakeholders before taking it forward,” he said.

Among the proposals under consideration is a single-window clearance system for permits required for film shooting. This would consolidate approvals currently handled by local bodies and other authorities, reducing delays in scouting locations and shooting. The framework also plans to introduce a standardised licensing format for cinema halls, covering operation and fire safety measures.

The draft will also examine ways to ease compliance with labour rules, including provisions related to wages, working hours, and workplace safety for those engaged in film production. Additionally, it is expected to recommend lower industrial electricity tariffs for cinema halls and a reduced fixed electricity charge to cut overheads.

Once the framework is in place, film producers would be able to access formal bank loans and institutional credit more easily, enabling better financing for projects. The move is seen as a significant step towards formalising the Malayalam cinema industry, which has long sought recognition as an industrial sector to unlock these benefits.

Separately, the Ernakulam district administration has started identifying government land for the proposed J.C. Daniel international film city project, also announced in the Revised Budget. The government plans to implement the project under a public-private partnership model. Authorities have requested details of land available under various departments, including revenue land and sites earmarked for industrial development. The initial plan is to allocate about 25 to 30 acres for the multi-crore project.

The budget has earmarked a total of ₹100 crore for various initiatives in the cinema sector, including the film city project and related infrastructure. The government expects the draft framework and the film city project to boost the state’s position as a hub for film production, while generating employment and supporting ancillary industries.

Stakeholders in the Malayalam film industry have welcomed the move, though they await the draft framework to assess its specifics. The government has not yet announced a timeline for finalising the framework, but consultations are expected to continue over the coming weeks before a draft is circulated for public feedback.