The industry status announced for Malayalam cinema in the revised State Budget for 2026-27 presented by Chief Minister V.D. Satheesan on Friday has brought cheer to the stakeholders.

The Revised Budget stated that the government will implement comprehensive projects for the Malayalam cinema sector. Granting formal industry status to cinema, creating a permanent venue for the international film festival, forming robust anti-piracy cells, and cultivating an environment to attract premier national and international film productions are targeted through these projects. As part of this, the ‘J.C. Daniel International Film City — Chitranagaram’ will be set up in Kochi. An amount of ₹100 crore is earmarked for all these projects.

“Its for the first time that such a comprehensive plan and allocation have been included in the State Budget for Malayalam cinema. We wholeheartedly welcome the Budget announcement to accord industry status to the sector. This has been our long-standing demand, said Anil Thomas, president of the Kerala Film Chamber of Commerce.

Mohanlal’s reaction

Actor Mohanlal took to social media to welcome the Budget proposals to support Malayalam cinema. “The projects will instil a fresh vigour and boost growth in the sector. The announcement on extending industry status to Malayalam cinema will generate new hopes among thousands working in Malayalam cinema,” he said. Mr. Mohanlal thanked Mr. Satheesan and Minister for Culture P.C. Vishnunadh for the assurances made in the Budget.

B. Rakesh, president of Kerala Film Producers’ Association, termed the industry status announcement a ‘game changer’ as it would offer various benefits to the stakeholders, including relaxation in electricity charges for the exhibitors. The decision to act tough against piracy is a welcome move as the issue remains a major problem for Malayalam cinema, he said.

Mr. Vishnunadh said in a communication that the Budget proposal to accord industry status will help elevate the commercial and artistic potential of Malayalam cinema to new heights. The government has responded positively to the long-standing demands of the stakeholders in Malayalam cinema, he said.