A meet on film finance and insurance, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Film Federation of India (FFI) today, grappled with these problmes. "It was perceived that Sushma Swaraj's declaration would bring about an immediate change in film financing and open the doors to assured monies at reasonable rates from banks and FIs. All this will happen, but it will take time," said P G Mankad, secretary, Information and Broadcasting ministry.

He however hinted that the industry would first have to regularise its operations andbring in some degree of corporatisation before banks began to feel comfortable with its ways. "It is a question of two different kinds of people coming together speaking different languages. It will take a while before they get to know each other," he told the assembled film producers, distributors, exhibitors and representatives from the banking and insurance sector.

Film maker Yash Chopra urged banks to come forward and support "smaller producers who have to resort to raising money from questionable sources". While FFI president S S Jain asked that finance be extended not just to film makers but also towards strengthening the exhibition and distribution systems as well as infrastructure components like studios, processing laboratories, equipment and publicity accessories.

"We have been meeting representatives of the Indian Banking Association and have tried to dispel their fears about this `totally disorganised industry'. In fact, if they support us, it may be easier for us to get organised. Besides,banks and FIs have no reason to worry about recovering their investment because a financier or a producer never loses money on any film project," he said. He also pointed out that fluctuations aren't alien to other industries and businesses, but that hasn't stopped banks from sanctioning them loans.

Ashok Wadhwa, managing director of Ambit Corporate Finance, said corporatisation has worked well in other parts of the world, Hollywood studios being a case in point. "The problem lies not with the industry but with the environment we are operating in. It is important to devise common accounting standards for the entire industry in order to establish its credibility," he said.

Bobby Bedi, producer of films like Bandit Queen and Fire, said raising corporate money and getting insurance cover shouldn't pose a big problem. "But you need to know your script in advance, and schedules and budgets need to be more or less frozen before you start shooting," he said.

An expert from Denton Hall, UK, KenDearsley, informed the gathering about various financing and insurance schemes that are being followed in the US, UK and western countries. In fact, the United India Assurance Co has covered Subhash Ghai's Taal - the first Indian film to get insured -- against practically every kind of risk. Ghai has taken everything, from cast insurance to third party property damage, technical equipment and office property insurance.