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Tollywood hit by fund crunch caused by the political heat in Telugu states

While the situation occurs every year, it appears that Tollywood is facing a significant cash crunch at this juncture.

Published Mar 07, 2024 | 5:03 PM ⚊ Updated Mar 07, 2024 | 5:03 PM

Tollywood hit by cash crunch caused by the political heat in Telugu states. (iStock)

Tollywood seems to be facing a severe cash crunch as many big-budget films have been struggling with the cash flow due to the ongoing Assembly and Lok Sabha elections in the Telugu states of Andhra Pradesh and Telangana.

While the situation is not being widely admitted by the top production houses, sources in the Telugu film industry circles revealed that the business is not as usual as it may seem to be for an outsider.

Big-budget projects like Megastar Chiranjeevi’s Vishwambhara and NTR’s Devara are currently being shot in Hyderabad and other parts of Telugu states due to budgetary constraints

The shortage of cash flow in Tollywood is attributed to the political situation in Andhra Pradesh and Telangana.

Additionally, many proposals from OTT platforms, which usually provide advance amounts, have been rejected.

The lack of funds is also attributed to the banks refraining from financing films. A few major banks avoid providing loans to projects due to the fag end of the financial year.

Reports suggest that certain mid-range movies, which are being produced by leading production houses, have been paused inordinately due to the cash crunch.

While the situation occurs every year, it appears that Tollywood is facing a significant cash crunch at this juncture.

While some producers have denied any financial strain existing and shootings are underway as usual, a few others have admitted that shootings have been temporarily held due to fund crunch.