Infinity to breathe new life into unfinished films

Cash-strapped film-makers will now have a reason to cheer. There is hope of a new lease of life for any film confined to the cold storage.

India's first indigenous film completion guarantor, Infinity Film Completion Services, will pump funds to bring out of the can the unfinished project. Infinity is backed by the leading insurance company, General Insurance Corporation of India.

According to information available with Business Standard, as many as 30 of 175 films churned out in India every year, are abandoned in the midway due to unplanned shooting schedules, ego battles or producers running out of money.

The film industry is expected to reach Rs 13,000-crore size in the next couple of years. This translates into big losses and high risks dissuading bank funding. Most of the producers resort to private funding where interest rates are anywhere between 24 per cent and 36 per cent.

The setting-up of a bond company will eliminate the risk and as much as 80 per cent of funding needs of the industry are taken care of by financial institutions that to date have perceived the film industry as a high-risk enterprise.

Film completion guarantees revolutionised film-making in Hollywood way back in 1950 with Lloyd's Insurance.

The Infinity Film Completion Services analyses project strengths, arranges pre-sales at the initial stage, organises advances from buyers and ensures project discipline by staying on film sets to control the costs on a day-to-day basis.

"If a film makes profits above the distribution costs, the profits are shared between producers, distributors and completion guarantor in a ration of 45 per cent each and 10 per cent to the completion guarantor," says Sunil, partner in Infinity.

He adds, "We will eliminate wastage... Directors have to be disciplined as we ask for signed bond scripts. That doesn't mean we kill spontaneity, it just means that we allow improvisations within certain parameters."

Infinity has signed their maiden Bollywood assignment, Cash, produced by Sohail Maklai Entertainment, starring Ajay Devgan, Suniel Shetty, Zayed Khan, Esha Deol, Diya Mirza and Ayesha Takia.