Recreating magic of single-screen: UP looks to revive closed cinema halls

UP Chief Minister Yogi Adityanath has asked officials to draft a blueprint to revive cinemas and facilitate construction of multiplexes and single-screen movie halls

After handing over the proposed 1,000 acre Noida Film City project earlier this year to a consortium that includes Hindi film producer Boney Kapoor, Uttar Pradesh is now looking to revive closed cinema halls in the state.

At present, there are around 156 standalone cinema halls and 78 multiplexes in the state, which is looking to position itself as a favourable filmmaking destination with the proposed Noida Film City. It already provides a slew of benefits to filmmakers who shoot their projects in UP, cast local artistes, and make films in vernacular languages.

However, according to estimates, 800 standalone cinema halls are lying closed across UP districts owing to dwindling ticket sales vis-à-vis multiplexes, and due to a lack of funds for renovation.

UP Chief Minister Yogi Adityanath has asked officials to draft a blueprint to revive cinemas and facilitate construction of multiplexes and single-screen halls, especially in the districts devoid of entertainment avenues. “The incentive scheme will not only ensure access to entertainment for the public but also boost investment and generate employment,” he told officials recently. There are no multiplexes in 39 of UP’s 75 districts. Ten districts do not have any cinema theatre, neither multiplex nor single-screen. In such a scenario, the Yogi government aims at providing cinema venues in laggard districts with the help of local entrepreneurs or large investors.

The state will provide incentives to develop commercial complexes and small-capacity theatres on the sites of closed or operational cinemas, reopen closed theatres, and build new single-screen theatres. The minimum seat requirement for cinemas will be relaxed to create opportunities for investors, while tax breaks are also in the works. The scheme will unlock the economic value of closed theatres by either reviving them or converting them into real estate projects, depending on location and financial viability.

Ashish Agarwal, the UP Cinema Exhibitors Federation President, says the proposed scheme will greatly benefit the entertainment sector, generate employment, and provide tax revenue to the state.

Agarwal, who is also the UP Malls and Multiplex Association’s General Secretary, told Business Standard a committee was earlier formed at the state level under the UP housing principal secretary and consisting of representatives from other departments, including information, GST, industry etc. “The committee was tasked with deliberating on the matter and giving recommendations to the state for reviving the defunct halls,” he said.

Agarwal, who himself was on the committee, said the recommendations included giving State GST (SGST) breaks for six and five years, respectively, to multiplex projects in districts without a multiplex and with a multiplex.

The state is expected to allow the owners of closed cinema halls to convert their property into real estate projects spanning commercial spaces, housing, guest houses, etc.

“Since most of the owners cannot afford to spend Rs 20-30 crore to convert their closed property into a multiplex, the provision to allow them to invest Rs 4-5 crore and change the land use would help them greatly,” he added.

The industry expects that 100-150 owners of defunct cinema halls could avail of the benefits in near future.