KPMG is working towards pooling in all the leading film personalities, corporate bodies, financial institutions (FIs), prospective producers and distributors to create a venture capital fund with an initial corpus of anywhere between $40 to $50 million exclusively for the film industry.
Though the government has cleared 100 per cent foreign direct investment (FDI) on film financing, KPMG feels it is better to start a venture fund with a corpus of $40 million to $50 million pooled out from the industry itself.
While IDBI and BoI have already entered into this sector in a small way, and the recent announcement by the Tatas shows that there is a greater scope for the leading corporates to enter the film financing by sponsoring the creation of a VC fund/company.
At a later stage, if needed, KPMG would assist the industry in bringing the foreign investment to see the industry grows faster.
If the fund is created, the film industry can heave a sigh of relief as they can get the funding at affordable rates with a easy time schedule which has not been in the case now - not to mention the scourge of the underworld.
According to industry sources, KPMG is identifying the prospective financiers, corporates, FIs and other film personalities who can play active role in creating such an important fund. The fund, once created, would be managed by professionals.