Veteran actor Shashi Kapoor, this year's Dada Saheb Phalke winner, could not attend the ceremony due to ill health. The actor will be honoured in a special ceremony in Mumbai.
"My special congratulation is to Shri Shashi Kapoor, who has been honoured with the Dadasaheb Phalke Award this year. His contribution to cinema has been manifold and tremendous. He is a true living legend," the President said.
"The contribution of his illustrious family to the Indian cinema is immense and Shri Shashi Kapoor has played a unique part by producing a number of meaningful films as well as performing in well-known international productions," he said.
The President and the Minister, while praising the film industry for its evolved content over the century, called it an integral part of India's "soft power" internationally.
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Kangana, 28, won her career's second National award in the Vikas Bahl's coming-of-age drama. The actress said movie sets were her film school. She received Rajat Kamal and Rs 50,000.
Dressed in a Bibhu Mohapatra gown, Kangana was the star-attraction at the event and was constantly mobbed by eager fans for photos and autographs. She left the event just after getting her trophy from the President.
Bahl and producer Vikramditya Motwane were also awarded for "Queen" which won its second trophy for best Hindi film. Both won Rajat Kamal and Rs 1,00,000 each.
"Court", a powerful and stark depiction of the mundaneness of judicial procedure, was given the best feature film award, which carries a Swarna Kamal and a cash prize of Rs 2,50,000. Its director Chaitanya Tamhane got a special mention in the President's speech.