Bhat, a native of Kashmir, plays a key role in the Abhishek Kapoor-directed film, which is based 'The Great Expectations'.
"It is an adaptation of the famous novel 'Great Expectations' by Charles Dickens. There is no relation to terrorism like the films made in the recent past," Bhat told reporters, adding there was tremendous support from the locals and the administration to the film industry.
'Fitoor' stars Aditya Roy Kapoor, Katrina Kaif and Rekha.
The actor, who was last seen in Anurag Kashyap's 'Ugly', said there is no role of army in the Valley as the situation has changed now.
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"Personally I feel that there is no role of army here now and it should go. I went to my native place Vichernag here. The people there welcomed me, they showered me with their love and affection," Bhat said.
The actor, a Kashmiri Pandit himself, said the issue of the return of Kashmiri Pandits, who migrated from here 25 years ago after the eruption of militancy, was a "psychological issue".