New Policy for Theatres: Centre Plans New Cinema Policy to Boost Theatres in Tier 2 and Tier 3 Cities
The Central Government has proposed a new policy to simplify cinema regulations, encourage investment, increase theatre screens, and strengthen film exhibition infrastructure across smaller cities and rural regions.
New Policy for Theatres: The Central Government is preparing a new policy aimed at revitalising India’s cinema exhibition sector by encouraging the establishment of more theatres in Tier 2 and Tier 3 cities. The proposed initiative seeks to improve cinema infrastructure in smaller towns and rural areas while expanding access to the big screen experience across the country.
As part of the proposal, the government has introduced draft Model State Cinema Regulations that aim to create a more uniform and simplified approval process for new theatres. At present, licensing and regulatory procedures differ from one state to another, making it difficult for investors to set up cinema halls outside major metropolitan areas.
The proposed framework is expected to introduce a streamlined system that could attract fresh investments into single screen theatres, mini theatres, and multiplex projects in smaller cities. Industry experts believe this could create more opportunities for regional filmmakers and smaller productions by increasing the number of available screens.
However, industry observers also point out that easier approvals alone may not be enough to revive the exhibition sector. Over the past few years, many theatres across India have shut down due to declining footfalls, the growing popularity of streaming platforms, rising maintenance expenses, higher electricity charges, and increased tax burdens.
Many closed cinema halls have already been converted into marriage halls, supermarkets, or commercial buildings. Stakeholders believe additional measures such as tax relief, financial assistance, affordable loans, and subsidies will be necessary to encourage theatre owners to renovate or reopen closed cinema properties.
The industry also expects governments to consider reducing GST on movie tickets and offering lower electricity tariffs for theatres. Such steps, along with the proposed regulatory reforms, could help restore the exhibition business and bring modern cinema facilities to more towns across India. Regional producers and exhibitors are also expected to present their recommendations to the Centre to ensure the policy benefits local film industries.
