NFDC Merger: In unified National Film Corporation, a theatre of the absurd

Why in News?

• The central government’s documentary and newsreel-making body - Films Division (FD), established in 1948, has been merged with the National Films Development Corporation (NFDC), a public sector undertaking (PSU) working under the Information and Broadcasting (I&B) Ministry.
• Besides FD, the Children’s Film Society of India (CFSI), the Directorate of Film Festivals (DFF) and the National Film Archive of India (NFAI) will also henceforth come under NFDC’s umbrella, owing to duplicity of work performed by these bodies.

 

Background

• Although the decision of the merger was announced in 2020, the finality of transfer was made effective from January 1, 2023.
• The closure of FD was proposed by Bimal Julka committee, which resolved that the organisation had become redundant and could not keep pace with the technological advances.

 

What are the Bimal Julka Committee recommendations?

• Make specific roadmaps for the development of NFDC, FD, CFSI, DFF, NFAI, Satyajit Ray Film and Television Institute, etc.
• It suggested an umbrella configuration with 4 broad verticals - Production, Festival, Heritage and Knowledge, under which institutes should work.
• Creation of Film Promotion Fund to fund independent filmmakers for making commercial films.
• It recommended a memorandum of understanding (MoU) to be signed between the Ministry and these institutes streamlining the performances of the institutes.
• It also suggested measures for improvement of revenue generation to make the institution financially self-sufficient in the long run and bring operation and cost efficiency in their working.

 

About NFDC And Other Film Media Units to be Merged With NDFC

• National Film Development Corporation (NFDC):
  • A PSU established in 1975, its mandate was to finance, produce, and distribute feature films, and to promote filmmakers outside the mainstream film industry.
  • It was declared a loss-making asset by NITI Aayog in 2018, and its closure was proposed in the Parliament. However, with the other bodies now being merged with NFDC, it is now the “umbrella organisation” with 4 broad verticals under which institutes should.
• Films Division (FD):
  • Established in 1948, it was the largest moving-image repository and audio-visual record of Indian history with following mandate:
    • To create public service awareness films
    • To film the decolonisation and nation-building process
    • To produce and distribute newsreels and documentary films
  • FD today has more than 8,000 newsreels, documentaries, short films and animation films on historical events and political figures, including rare works of stalwarts like Satyajit Ray, M F Husain, Mani Kaul, Pramod Pati.
• Directorate of Film Festivals (DFF): It was established in 1973, and tasked with cultural exchange, promoting Indian cinema worldwide, organising the National Film Awards and Dadasaheb Phalke Awards, the Mumbai International Film Festival, and the International Film Festival of India in Goa.
• National Film Archive of India (NFAI): Established in 1964 under renowned curator P K Nair, it was tasked with tracing, acquiring, and preserving the heritage of fiction cinema in India.
• Children’s Film Society of India (CFSI): Formed in 1955, it was tasked with producing children’s films and value-based entertainment for underprivileged children in small towns and rural areas.

 

Arguments in Favour of Merger

• One industry, one unit, and one interface: The coming together of all the film units will make it a very formidable force and lead to a balanced growth.
• To cope up with new advancements: The Film Division had already been facing problems owing to outdated content and also due to changed terms in the film business, e.g., the OTT space coming in.
• Avoid duplicity: The merger of film media units under one corporation will lead to convergence of activities and resources (saving public money) and better coordination, thereby ensuring synergy and efficiency in achieving the mandate of each media unit.
  • With this merging and making one umbrella organisation, it is expected that loss bearing corporations like NFDC might start to give some profits.
• Promote all genre film production: The merger will give a strong impetus to the production of films of all genres including feature films, documentaries, children films and animation films.
  • It will also lead to promotion of films through participation in different international festivals and organising various domestic festivals.
• Promote technological advancement under one umbrella: This will lead to preservation of filmic content, digitization and restoration of films and distribution and outreach activities.

 

Arguments Against Merger         

• Diminish specific purpose: The different film bodies were created with specific objectives and for different functions. Merging them will diminish their respective unique contribution.
• Non-consultative process: The decision for convergence has been arrived in an undemocratic and with non-consultation with the major stakeholders like filmmakers, experts at various film units, etc.
• Conflict of interest: In the earlier scenario, the NFDC used to get national awards for their feature films and the FD for their non-feature films. Also, the whole exercise of deciding the national film awards was hitherto conducted by the DFF.
  • But in the new “synergised” scenario, NFDC itself will be sitting in judgment and deciding whether its own films or others will win national awards.
• Fund diversion: The National Film Heritage Mission is spending crores for the restoration of classic films through the NFAI to preserve the rich cultural heritage of the country. These funds hence should not be diverted into a loss-making corporation like NFDC.
• Government transferring its responsibility: Archives of a nation is a very expensive affair, which is the responsibility of the government, not any corporation.

 

Conclusion

• The development of the audio-visual sector requires industry friendly policies, collaboration and regular interaction between the Government and industry stakeholders.
• In order to make India a global content hub, the proposed move should further unleash the potential of the media and entertainment sectors while addressing the concerns of relevant stakeholders.

 

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Q1) What are the main objectives of National Film Heritage Mission?

The objectives of NFHM include condition assessment of film reels to ascertain the remaining life of the film, digitization of films, construction of archival and preservation facilities called vaults, trainings and workshops for in-house capacity building, and web-based end to end IT solution.

 

Q2) Where is the National Film Archives of India?

With headquarters at Pune, Maharashtra, NFAI had three regional offices at Bangalore, Calcutta and Thiruvananthapuram.

 

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Source: NFDC merger: In unified National Film Corporation, a theatre of the absurd